Congratulations! You’ve won the lottery! And you can’t wait to begin making all the positive changes in your life that you’ve dreamt of for so long. But lottery winners typically wait for a long time to receive lottery winnings. But if you decide to sell your structured settlement, you could have the cash on hand to begin to invest your money, getting out of debt, or taking that round the world luxury cruise.
The lottery is the most popular and widespread form of gambling in the US. People may also have received a structured settlement from an insurance payment or lawsuit. At the same time, there are all kinds of urgent expenses to be paid. The average
In recent months the news media has covered the dangers and potential pitfalls associated with selling an annuity settlement, or structured settlement annuity. A piece in the Washington Post this past summer highlighted one particular company involved in what appeared to be predatory practices.
There is of course the entirely other side of the industry, which involves buying an annuity for future investments instead of getting cash for settlements now. A structured settlement can save you somewhere between 25 and 35% in state and federal taxes on interest income that would otherwise be subject to tax. Here are four important questions to ask before you do so, with information from a financial expert and
Annuity payments are as common as they are controversial. They’re common in the sense that they are used for everything from retirement and life insurance plans to court settlement payouts, but they’re controversial in the sense that the money they store is often inaccessible. An annuity is a financial agreement in which a certain amount of money is “stowed” away for an extended period of time. Ten, twenty, thirty years. Etc. The money is not taxed nor does it collect interest. After the agreed-upon time limit, claimants can start accessing their money in a payment schedule they agreed to.
For some, annuities offer financial peace of mind in that the money cannot be lost no matter what. For others, however, they can be very inconvenient. People who need a bulk of the money imm