While a lottery win can be unexpected, deciding whether to sell your lotto win for a lump sum or to continue to receive a structured settlement annuity can be a big decision. Lottery winnings across the country are subject to federal tax and, depending upon the state and the amount of the prize, could be subject to state taxes as well. A lottery winner could find themselves having to pay more than one-third of their winnings in taxes before they receive their first check.
In general, a lottery annuity pays out every year and increases over time. People who decide upon selling lottery payments for lump sum payouts may wish to address existing bills, to embark upon a new course of study at a local university, to avoid interest on car loans or home mortgages, or to take a vacation.
The market for residential and commercial real estate is extremely competitive in the United States and has been for almost a decade: younger people may wish to allow a company to buy structured settlements — lawsuits or lottery winnings — in order to ensure that they have the money available to make a down payment on land or on a new home. People have many reasons for selling fixed annuities, and companies that buy structured settlements may be able to assist in the decision-making process.
In the process of finding a company to buy structured settlements, lottery winners should look for a specialty finance company that specializes in converting annuities into lump sum payments. Selling an annuity could involve “sell-off” fees of up to 10%, and experts advise considering the best ways to invest lump sums of money. Real estate, especially commercial real estate, continues to be attractive to investors due to its reliability as a source of income.
People who win the lottery often report that after investing in a car, a home, paying off all their bills, and taking a vacation, they look for trustworthy long-term investment opportunities. Investing in commercial real estate, such as hotels and inns, laundromats, restaurants, parking garages, and concert venues, can be the first step in converting a one-time win into lucrative new avenues for long-term income. Thinking about finding a finance company to buy structured settlements? It could be the first step toward an entirely new lifestyle as a real estate investor.