When you’ve won the lottery or a lawsuit settlement, you have a “top of the world” feeling that will last for days and even weeks. But you should be aware that this is also the time when you should take a serious look at your finances and your goals for the future. Most lawsuit and lottery payments are paid out as annuity payments, which is a fixed amount each year. Over time, the value of the money depreciates, since it is not earning interest or dividends as other investments would.
Why sell your annuity?
There are all kinds of reasons why people want their money in hand all at once, rather than having it paid out to them in yearly payments. By selling your annuity, you get your money all at or once, to use as you wish. And if you’re like most people, you probably have a long list of things you want to do with the money.
You may want to pay off your debt, to invest your money productively, to fulfill your long-cherished dream of opening your own business or traveling around the world. Maybe you just want to buy a house or go to college to widen your horizons. When you sell your structured settlements, you will have access to all your money at once, without waiting for years for the full amount to be paid out.
Debt free is a great feeling
It’s wonderful to live without debt but not many people get that chance. In fact, debt due to medical bills and college tuitions accounts for one of the biggest drains on the average family’s finances. As many as one in five Americans in the age group 18 to 24 years describe their financial situation as “debt hardship”. And the amount of interest on debt paid by the average household is a staggering $6,658 each year.
If you decide to sell your annuity settlement, you will have a large amount of money at your disposal. And perhaps one of the best uses you can make of this money will be to pay off your debt.
Get some serious financial planning advice
Once you’ve decided to sell your annuity payments, you will have a large amount of money at your disposal. It’s very important to get some sound financial advice and to plan how you can best invest that money to fulfill your goals and dreams. You may be encouraged to learn that fully 92% of those who sold their structured settlements reported that they were satisfied with the choice.
What would you do with a lump sum instead of annuity payments? Be sure to plan ahead and get sound financial advice.