Lottery Winnings

Is it for real. You have just won the lottery and your share is aprox $2,500,000.00!( before taxes) As the reality sinks in, you begin to imagine what all you can buy with that extra money. A new house, a new car, pay off all of your bills or just go have some fun. Maybe you are even thinking of telling your boss how you really feel about himand his job. But, you better wait and think it over before you do something you might regret later. Surely you noticed that jackpots are paid out over twenty five years. A few strokes on the calculator might tell you that you will receive for the next twenty five years, Using the above amount you will be receiving a check for $100,000.00 before taxes. After taxes maybe $60,000.00.( at 0% interest) Enough to quit your job? Maybe. Enough to quit your job and do all the things you thought you could do with a million dollars? not quite yet.

Have you thought about how much $60,000 a year will be worth ( or worth less) 15 or 20 years from now? Have you consider inflation, tax increases and cost of living increases. Look at what has happened to the price of cars and houses in the last 10-15 years. What if you could receive a lump sum payment, now imagine the value of your money instead of a yearly payments for the next 25 years.

Some prize winners (lottery, contest, casino) and other annuity holders have utilized the services of private and institutional investors that will buy their winnings or other structured settlements, thus providing a lump sum payment that can be used in any manner they wish. They now have some control over how their money is effected by inflation. With proper investing of their lump sum pay out, they have the ability to control their own financial destiny. Some have chosen to use their lump sum for investing in future interests, buying the house, jewerly or starting their own business of their dreams. These item can be sold if you require cash in the future.

This same scenario can apply to personal injury lawsuit awards and many other structured income streams.