How Are Lottery Winnings Paid Out?
Types of Lottery Winning Payouts
Lottery Winners can chose to take a lump sum payout or take an annuity that pays out over a period of time at a fixed amount. Saavy winners sometimes choose the lump sum payout so as to allow them to invest in the market for better returns including real estate, commodities and stocks or bonds.
Additionally, taking the lump sum up front allows for extravagant purchases or paying off high interest debt. The downside to this is that the payout amount will be significantly less than the amount won in the lottery.
Waiting for the payout over a long term.
A popular reason for setting up an annuity for the lottery winnings being paid over a longer term is the tax benefits realized. Since the amount that is actually received is smaller over a period of time, it can actually lower your tax bracket compared to taking the lump sum upfront.
Get Cash For Your Future Lottery Payments
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take control of your cash flow. Let us show you all of your options while helping you to target your financial piece of mind!