Did you say $70 million

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    31-Mar-2016

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<ul><li><p>Did you say $70 million?! by Claudia Green (claudia@eaglesettlements.com) </p><p>I was reading an article yesterday about a man who recently won $70 </p><p>million on the SuperLotto Plus in San Francisco, the largest award by </p><p>the California State Lottery since 2009 when someone won $76 </p><p>million. $70 million all as a result of buying the winning lotto ticket, </p><p>can you imagine that?! </p><p>What I find absolutely staggering though is that the winner, Eurico </p><p>Chin, left it a month before coming forward to claim his winnings. By </p><p>all accounts, he was fully aware that he had won, but waited to come </p><p>forward because he was deciding what to do with the money first!! </p><p>The article I was reading stated that Chin was still weighing up his </p><p>options and deciding whether to take the winnings as a one off lump </p><p>sum of cash, or whether to opt for the annuity option available to </p><p>him. I think that Chin is being very wise to take his time on this point. </p><p>It is certainly not a decision that should be taken lightly and indeed, it </p><p>can be very difficult to make. What is right for him now may not </p><p>necessarily be the best option for him in the future. Whichever way </p><p>he decides to go will undoubtedly make a huge impact on both </p><p>himself and his family. </p><p>If Chin decides to opt for the one off lump sum of cash now, then he </p><p>is likely to receive an amount of approximately $41 million. If, </p><p>however, he decides to go with the annuity option, he will receive the </p><p>full $70 million paid out to him in regular periodic payments over the </p><p>next thirty years. </p><p>As with a structured settlement annuity, electing to </p><p>take lottery winnings as an annuity settlement can be a very good </p><p>way for an annuitant to manage the money, rather than if they had a </p><p>lump sum of cash instead. Think about it, if you were to suddenly </p><p>receive a cash award totaling millions of dollars in one go, then you </p><p>might be blinded a little and tempted to spend, spend, and spend!! </p></li><li><p> This is exactly the reason why an annuity settlement can be a good </p><p>alternative for some. </p><p>If Chin decides to receive the money in regular periodic payments, he </p><p>should be aware that if his financial circumstances change in the </p><p>future, and he finds the need for a lump sum of cash, then he will </p><p>have the legal right to sell some or all of his payments to astructured </p><p>settlement factoring company such as Eagle Settlements. In return for </p><p>selling his annuity settlement payments, he will receive a lump sum of </p><p>cash for them instead. I would, however, always recommend this as a </p><p>last resort though because once you have sold your payments, you </p><p>cannot get them back. </p></li></ul>