Where do you get started selling your annuity? Annuity payments can be tricky for those unfamiliar with the process and even more so if you’re still struggling with common debt like student loans or car payments. Knowing how to buy structured settlements or lottery payments, however, can go a long way in achieving your goals! Read below to learn more about selling lottery payments, lump sum versus annuity and how you can put this money toward a better future.
What Is Annuity?
Annuity, also known as a fixed sum, is a specific amount of money paid to someone yearly. Much like a form of insurance, an annuity is used to generate a certain amount of income to better bolster savings or invest in a long-term project. There are many ways to create annuity, with some of the most common reasons being lottery winnings or payouts, and the average sold structured settlement can reach up to $300,000 total.
What If I Win The Lottery?
Winning the lottery is a rare opportunity! How do you make the most of it? It’s estimated half of all lotto winners will still work after winning a large amount of money, which can potentially be avoided by calculating a structured settlement over a period of time. It’s estimated over 37,000 Americans will use structured settlement money for various reasons such as buying a new car or getting out of debt. Keep in mind, though, that the government withholds up to 25% of lottery jackpot winnings!
Where Do I Start?
Figuring out where to start is as simple as picking a course of action. An immediate annuity, for example, will have you receiving payments in as little as 30 days. Experts recommend, however, that you put no more than 25% to 30% into your annuity to help it last over an extended period. Variable annuities are geared specifically toward retirement, but require a maintenance fee of around $30 per year. Last, but not least, a single-premium annuity is another popular choice for retirement plan payouts that get an investment paid all at once. How will you start selling your annuity?