Should you choose cash option
for your lottery winning?

Winning a lottery is a dream comes true for a small group of people. Yet for many of these people the sudden wealth from lottery winning was proved to be fleeting. Many could not make this wealth last as long as they had wished. Financial planning is key in ensuring that the lottery winning will last your life time.

We are not going to advise you on financial planning but we are going to show you the payment options available to you so that you can make smart financial decisions. When you purchase your lottery tickets you have to select whether to receive the winning over 20 years or as a lump sum (cash option) - at least in Texas, your state lottery may be different. If you are fortunate to hit the jackpot $10 million and had selected "cash option", how much do you think you would get? Right. Less than $10 million! A bit more than 60% of the total amount if you selected to get a lump sum payment.

You see Mr. Schwartz got $6,351,857 for his $10 million win. To understand why he only received about 60% of the $10 million you may want to read "time value of money".

If you have a good financial plan or planner this large sum of money would set you up for life. You can make certain investments that would give you more than $10 million over the 20 years period. However if you don't want to mess around with the investment stuff - you just want to enjoy life - then $500,000 a year for 20 years may be a better solution for you. But what if you want a small (say $2 million) lump sum as well as installed payments for 20 years?

This third option is not available from the goverment agency. That is where we come in. If you had not selected the cash option then you can sell to us a number of payments to get the initial lump sum you need. Later you will again collect payments from the lottery agency. This provides the most flexibility and gives you total control of your financial future.  

Home :: Factoring :: Inheritance :: Life Settlement :: Mortgage Notes :: Structured Settlements ::