Most lottery winners are faced with a choice when they collect their winnings. They can take the entire payment (minus taxes, of course) in increments over the course of many years, or they can settle for one immediate payment that considerably reduces the amount of total winnings. Winners who choose the latter have their money, and that is that. Those who choose the former, though, do have some options.
If a person realizes that receiving $100,000 a year for 40 years is not making things as easy as he would have hoped, he can sell off some of his future lottery payments. Finding a settlement broker gives the person a chance to come into a large sum of money in a short time. The amount that companies will pay for future installments varies, but in many cases, a person can receive enough to easily purchase investment properties or pay off outstanding loans.
Tips for Selling Lottery Payments
Companies that buy lottery payments are in the business of making money for themselves. Unfortunately, this has given rise to a number of companies that do not always operate ethically. They will simply try to buy as many future lottery payments for as little as possible.
The most important thing for a person to realize is that they do not have to sell all of their future payments. In fact, a person should sell as few payments as possible. If a lottery winner is selling payments to buy a home, he should only sell the payments that will allow him to achieve this. Too often, people settle for low rates and they end up selling off the majority of their future earnings for a fraction of what they are worth.