What to know before you sell lottery payments
You’ve won the lottery! Congratulations!!! Unfortunately, unless you’ve won the large, multi-state games, you may not have an option to receive a lump sum. If you win $1,000,000.00, it’s often paid out over 20 years. If you win $1,000.00 a week for life, then you get a check once a year. While this is a tremendous financial windfall, it may not allow you to accomplish the goals you have now that you’ve won the lottery.
If this is the case, then you should consult with a purchaser of annuities. This is a company to whom you can sell lottery payments. Perhaps you want to use the winnings to get out of debt, or buy a new car or even purchase a house. An annuity purchaser will help you accomplish these goals.
Should I Sell my Lottery Winnings or Keep Structured Lottery Payments?
The first thing you should do after winning the lottery is confer with a financial planner. This will allow you to put together financial goals for both the short-term and long-term. Should you make the decision to sell all or part of your lottery winnings, make sure the company you are selling to is a member in good standing with the Better Business Bureau.
Furthermore, ask if the purchaser is a broker or a direct funding source. Brokers will add a layer of fees to the transaction. Only work with a direct funding source.