Recent media attention has exposed the glamor of lottery winnings, demystifying the lottery and shattering the hopes of millions. But we still play because we want to win. Our lives will be so much different, better even if we win. Well good luck to you; but if you do happen to win let these paragraphs prepare you for the good, the bad, and all of the ugly that has to do with the lottery.
The Problem with Lottery Winnings
It is no surprise to learn that nearly half of lotto winners continue working their jobs after winning the lottery. Many of which cannot afford to live off the meager annual payments offered. Aside from the 25% withheld by national taxes and the additional 2 to 5% withheld by state, you will have regular annual fees depending on the type of annuity. A variable annuity will charge you 2 to 3% per year for investment management and other miscellaneous fees. Any withdrawal that you make within the first five or seven years can result in a 7% surrender of your charges. Even an immediate annuity is poorly named, as this can take up to 30 days before you receive a check. The lottery isn’t what its cracked up to be, but luckily you can still sell your annuity settlement for a lump sum lottery payout.
The Good News
One of the biggest lotteries in the country, the Mega Million pays out one immediate payment followed by 29 annual payments that grow by 5% per year. That works out great if you have 30 years to wait, but by selling your annuity you can get the most out of your cash as quickly as possible. An annuity broker can give you a lump sum lottery payout immediately as cash for annuity payments. Millions of Americans are selling their annuities for fast cash now; what’s stopping you from getting the most out of your money?