Rapid Growth – With the correct assessment and decisions, the large money taken from the lump sum payout can be a really interesting investment that will grow a lot more than small investments.
One Time – It may sound obvious, but some winners prefer to just pay the taxes and get things going at once and feel left at peace for the rest of their lives.
Inheritance – In the case of inheritance taxes, the large sum being available can help pay them, while annuities might make it difficult to make up for them.
Instant Dreams – When you receive all the money at once, you can put all your plans into action. New businesses, traveling, gifts, everything becomes possible!
Cons of Lump Sum Payouts
Deductions – The lottery taxes, which you can verify with our lottery tax calculator, are bigger when you take a larger sum at once. Also, kbc lottery helpline number the prize is often reduced by about 30% from the advertised jackpot when you take the full cash option.
Lack of Control – This con is particular to every winner, as it depends on how ready you are to become rich or an instant millionaire. We have a guide on what to do if you win the lottery, and that can help you avoid the lack of control that makes people bankrupt.
Pressure – It is almost impossible to avoid pressure from family and/or friends when you instantly eliminate your financial problems and have the capacity to eliminate theirs.
Real Example: Mega Millions Annuity or Lump Sum Payment?
Let’s imagine a real situation of a millionaire prize to give you a true example of the decisions you would have to make. There is a Mega Millions drawing worth $370 million, and you win it. That’s great! In the case that you had opted for 30 annuities, you would receive around that total after the three decades of annual prizes.
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