This is a special post that is tied to a huge $1000 Cash Giveaway. You can enter using the widget at the end of the post. You get two entries by liking Debt Roundup on Facebook and Subscribing to my RSS feed. Enjoy!
One thing that I have contemplated before was if I were to come into a nice windfall, how would I want to have it? If I won the Powerball or Mega-Millions lottery, would I take the lump sum cash payment or the annuity payment over 30 years? I am not sure about you, but I would probably take the lump sum payment. There are many reasons why I would do this, but the biggest reason is the investment opportunity and the control over the money.
No matter if you win the lottery or have a structured settlement for a variety of reasons, annuity payments can be nice, but you have to deal with the payments for over the annuity term. If you get the lump sum payment, then you get the cash upfront, minus all applicable taxes and any discounts. You then have the control over what you want to do with the money. I for one would use the lump sum payment for a variety of investments.
If I take a portion of the payment and invest it in the stock market, then I could increase my money by about 9% based on historical trends. This is a great return for almost no work. I like the ideal of having more control over my money and growing it on my terms. Yes, I could grow my annuity payment, but that could be more volatile based on the number of years the payments are made. Not only can I invest in the stock market, but I could secure great dividend paying stocks along with P2P lending through Prosper or Lending Club. I could also use the money to invest in businesses that I think will succeed. The investment possibilities are endless.
If you are someone that is dealing with a structured settlement, have you ever thought of selling your annuity? Whatever your reason, whether it be to pay bills or more financial control, there are ways to sell your annuity in order to cash out. You can even get cash advances based on your annuity payments. Just because you have a structured settlement doesn’t mean that you have to stay on the current path. If you are in need of the money and want a lump sum payment, then selling your annuity can be an effective way to get your cash windfall.
If you want a small windfall, then enter now to win $1000 CASH!! This giveaway ends on January 31st, so make sure to enter today!
About Grayson
In my opinion taking the lump sum is much better idea. Although you must resist the urge to spend it. Investing the lump sum in the stock market would be a good idea because of historical trends.
Brett @ wstreetstocks recently posted..3 REITs With Yields Over 10%
Yep, as long as you aren’t tempted to keep pulling it out when the market goes south.
Thanks for co-hosting! I hope you are having a great week!
Holly@ClubThrifty recently posted..My Escape from Hotel Hell
Thank you as well Holly. My week is going well and I hope your’s is too.
Thanks for Co-hosting the giveaway, I have learnt more about structured settlements.
Bashir Ahmed recently posted..5 Ways To Get More Work Done So You Can Buy An Island, Or Just Get Home Quicker
I would always take the lump sum over the installments, but I like to think I am a bit of a pro when it comes to managing my money.
Glen @ Monster Piggy Bank recently posted..MPB – Pool Room Posts #12
At least you know what you would do if it came down to it.
wasn’t sure what u wanted for the rss subscription options so i both subscribed by email and through Google Reader except on one blog that didn’t have an email option
That will be fine. I appreciate it.
I would probably get the lump sum payment and like what you mentioned, investing the money will allow you to earn more too.