So you’ve won the lottery and you originally chose to receive periodic payments?
It may already have crossed your mind to sell some or all of your payments for a lump sum payment. The question is: Is it a good idea to sell lottery payments?
There Are A Number Of Reasons To Sell Lottery Payments
If done for the right reasons, cashing in your lottery payments can work to your advantage. The money can be used to pay bills, buy a home, start a business, pay for college tuition, or fund other investments. Another major consideration is inflation. Your money will be worth less in the future than it is now. Just recall how much a dollar could buy years ago. No matter what your reason, you may want to consult with a financial advisor before you sell lottery payments.
Know These Fundamental Principles
Before you sell, it is important for you to understand some of the fundamental principles involved when people sell lottery payments:
1. You will receive a discounted lump sum cash price, not the full face value of your lottery payments.
2. If you decide to sell lottery payments later rather than sooner, the amount offered you will be smaller.
Once you understand these basic principles and take into consideration your personal financial situation, you should be able to decide how much of your periodic payments you ought to sell.
