Many people fantasize about winning the lottery or a big lawsuit and what they would do with the money they would get. Many people assume they would get it all at once but most lottery jackpots pay out over decades. The Mega Millions lottery pays winners one large payment followed by 29 yearly payment, each is about 5% more than the one before it. For their $50 million jackpot, that is one payment of $750,000 and then payments that will eventually reach $3.1 million. If you have won a lottery or a lawsuit or have an annuity, that may be good for you but you may want to sell your structured settlements for cash now.
How Do You Sell Your Structured Settlements?
- Find a financial advisor you can trust. The decision to sell your structured settlements is very personal and important one. Take your credit report and other financial documents to someone you know and trust. Go over everything with them and let them know what your expenses are. They can help you determine if selling an annuity settlement is the best thing for you to do. There are costs associated with selling fixed annuities. Really talk to them about the specific reasons you think you may want to sell your structured settlement or lottery winnings. You need to have a good reason when you go to court.
- Research the process. Selling your structured settlements is not like selling your car, your home or anything else. You will need to find a reputable buyer and have the sale approved by the court. A judge will review the terms of your sale and the reasons you want to sell your annuity. Many people, for example sell to avoid filing for bankruptcy. In 2013, there were nearly 3,400 bankrupcty filings every day so do not feel badly if this is your reason for wanting to sell. The judge may also ask you questions to make sure you understand the consequences of selling an annuity. They will want to make sure you have all of the infomation you need and are making a well thought out desicion.
- Find a qualified and reputable buyer for your annuity.You need to really do your research before you pick a company to buy your structured settlement. Ask around. You may know someone who has done this, do not assume you do not know anyone who has done this. Ask your friends and family. Make this one of the things you talk about with your trusted financial advisor. Not every company that buys structured settlements is trustworthy and reliable. Check online for their reviews and ask about recommendations from other clients. You cannot be too careful with this decision.
- Get more than one quote. Do not go with the first company that gives you a quote for your structured settlement. Get at least a few. Ask each the same questions. This is a big decision so take your time when talking to different companies. You will regret not doing this later if you go with a bad company. It can also cost you a lot of money.
The decision to sell a structured settlement, annuity or lottery payout is a very big and personal one. You should carefully weigh the pros and cons and think about your situation. Talk to your family and financial advisor. Most people who decide to sell are happy they did it but every person and every situation is unique. If you take your time and carefully crunch the numbers and consider what your needs are, you may find that the annual payments provide you with the money you need. When you are thinking about this, consider, not just what you need to live today but what your future needs will be.
If you really take your time, do your research and are methodical and thorough in your process, you will come to a decision for you, your family and your situation that you will be happy with for years to come. In that case, you will get the most from your decision to sell your structured settlements.