• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

5 Reasons To Sell a Lottery Jackpot Annuity

By Sabado Domingo

Most lottery prizes are offered in the form of periodic payments to the winner. As a result, the winner has to linger on for years before he gets to have the full amount of winnings.

There are many wonderful benefits of holding on to the annuity like tax savings, regular income and many more — but there are some disadvantages too. With inflation threatening to reduce the value of dollar over long periods of time, the real value of an annuity decreases over the years. One way to counter this is by selling your lottery jackpot annuities right away in exchange for a larger lump sum.

Of course, inflation isn’t the only reason to avoid the annuity — there are many other factors why some people ultimately decide to sell their lottery annuity. Here are five of the biggest:

Get more money for group winnings

Many people often get together to form a group which buys lottery tickets in huge numbers from the money collected in order to increase their chances of winning. However, this can result in periodic payments which are actually quite small. In some cases, if the annuity payments are small enough, that could lead some of the group members to even see their win as a loss. Selling the lottery annuities can result in a larger payout for everyone altogether.

Investing in your business

Many dreams become reinvigorated after encountering with lots of money. In some cases, however, the annuity is not large enough to reinvest what you have won into, say, your business — or even starting a new business. In these cases, one way to free up the cash locked into the annuity is by selling the lottery annuity.

Home purchase and renovations

There are times when there is a lot of fluctuation in the economy and in that time purchasing a new home can be an ideal investment rather than simply holding onto an annuity. You can sell the annuity to purchase a home in a debt-free manner or reconstruct your home. Purchasing a loan for a new home can become very costly and leave you for worries about the payments. Therefore, it may be better to sell off your winnings to get a lump sum and get ready to settle in your new home in a debt-free manner.

Invest on Education

Investing into your education or your child’s future will require serious decision making in terms of financial matters. Therefore, selling the lottery annuity may come in handy for such an investment in order to secure your child’s future.

Manage your cash flows

If you are suffering from huge credit card bills or medical bills, then periodic payments may not be sufficient to meet your needs. By deciding to sell your annuity for lump sum cash, you might be able to handle your financial situation or reduce your debt. It may also make sense to think about getting out of the huge debt and funding your dreams in a very short time with various structured settlement companies.

Photo Credit: vvvracer

Leave a Comment July 27, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The Question of the Week:

How is your investment portfolio doing this year?

View Results

Loading ... Loading ...

Recent Posts

  • Grandfather Says: Net Worth and Real Value
  • The Top Daily Deal Sites on the Internet
  • Proper Financial Planning for Individuals With Irregular Income
  • 14 Things You Should Never Spend Money on While Traveling
  • 18 Amazing Facts You Didn’t Know About ATMs
  • Black Coffee: Chunk and Run
  • 100 Words On: Why Tracking Your Net Worth Is So Overrated
  • Six Ways to Create a More Professional Social Media Presence 
  • How to Get Great Deals with Drugstore Coupons
  • 11 Ways to Ensure Your Summer Vacation Doesn’t Bust Your Budget

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022