It’s Not All Or Nothing
There are a few myths circulating around out there that if you want to take advantage of the lump sum option with your structured settlement that you have to sell your rights to all of your future payments. This just isn’t true.
The lump sum option gives you the opportunity to sell the rights to as few or as many future payments as you wish. In fact, many structured settlement holders choose to only sell a portion of their future payments because they want the security of knowing they’ll continue to receive payments in the future. They get some cash now, and the reassurance of future payments as well. Now that’s a pretty good deal.
The Importance Of Human Contact
The internet is a good place to start when searching for a structured settlement company. Cyberspace provides you with droves of option right at your very fingertips. However, it’s important not to give out your personal information to just anyone.
Most scammers want you to give them your personal information right off the bat. In fact, some will ask for it to be included in the initial form you fill out on the web. This is a real risky move on your part. It’s best to make some sort of human contact to reassure yourself that the structured settlement buyer/company is a real one, and not some internet phony that wants to steal your identity.
DEFICIT STATES HANKER ON LOTTERY WINNINGS
Increasing state deficit budgets around the nation could be terrible news for several state agencies but not the lotteries. With budget deficits from the current fiscal year all through 2011 projected to add up to more than $ 350 billion, lottery officials believe they could help in bridging the gap by close to $ 14 billion by going after bigger audiences, increasing the percentage of amount paid to jackpot owners, spending more on promotion and advertising and finding new places to sell the tickets, including internet. For the fiscal year 2008, the national figures are projected to reach close to $ 37 billion based on a survey conducted by San Antonio consulting company Frost & Sullivan on behalf of several state lottery programs.
Gordon Medenica, New York State lottery director says, “It’s not that we don’t know how to make money, it is just that we are bound by constraints in doing it.” Annually, the state lends nearly $ 2.5 billion by way of funding to New York State schools, nearly 12 % of what the state spends on its education.
This, of course, drives anti-lottery camp to distraction. Nearly 42 states, including the District of Columbia have lotteries. In addition, consumer advocates state that they don’t amount to anything more than regressive tax on disadvantaged.
Nearly twenty percent of lottery players play frequently, while nearly 5 % of players purchase 51 % of lottery products, say spokesman for national advocacy group “Stop Predatory Gambling” Tom Grey. On an average, these high-frequency players spend $ 3875 each year on lottery products, deviating more towards lower end of household-income scale. Grey says, “You need to juice the product to keep the needle in the addict.”
In a recession, it is a tough sell, especially when states scramble to raise funds. For instance, in California, the government faces a budget gap of $ 16 billion which requires reduced expenditure on education and more taxes, besides other services. It also counts amongst the bottom five states measured by how much the state lottery pays to the scratch-ticket winners of jackpot - amounting to 58 % of sales. In areas such as New York, the payout for scratch ticket lies from 75 % to 65 % of sales. They are amongst the most popular available games. The payout restriction in California is by stature. The state legislature granted authority to state lottery to increase payout as of July 1 in case voters approved it in special statewide May election.
There are other states which work to make lotteries more flexible than what they offer. The largest U.S. State lottery having $ 7.7 billion in annual sales in New York, is currently working to bring 32-state Power Ball lottery in state to compete with other multi-state lottery - the Mega Millions.
California’s payout restriction is by statute. The legislature granted the state lottery the authority to increase payout as of July 1 if voters approved it in special statewide election in May. The estimated benefit from increasing this payout: $1 billion for California public schools in first four years.
Other states are working to make lotteries more flexible in what they are offering. New York - the largest U.S. state lottery with $7.7 billion in annual sales, and seventh largest lottery in the world, is working to bring 32-state Power Ball lottery in state to compete with other multi-state lottery, Mega Millions.
Power Ball and Mega Millions are the ones that draw huge jackpots and appearances, but until now, New Yorkers wanting to play Power Ball have been forced to go to Connecticut or Pennsylvania to buy tickets. The state legislature recently voted to allow Power Ball, and the state lottery is now working to finalize the move.
The New York lottery is also trying to open more retail locations, but the bad economic conditions have tripped up those plans. Of the hoped-for 1,000 new retail locations planned last year, only 300 to 400 have been opened. Lottery sales were strong for the first three quarters last year, Medenica says, but stalled in the fiscal fourth quarter, ending in March.
The Georgia Lottery Corp., with $3.5 billion in annual sales, had wild success with two lottery retailing stations it set up in baggage claim area of Atlanta airport. The two locations have become two biggest lottery retailers in state, with $ 1,66,000 in sales each week.
Lottery foes have more radical plan. The lure of lottery is akin to that of savings bank, according to study conducted last year by Institute for American Values. They offer convenient location for people to “invest” small increments of money on regular basis, with security of government backing and promise of economic security down the road.
Stop Predatory Gambling and other anti-lottery types are pushing for lotteries to offer savings tickets alongside scratch off and other lottery games, giving consumers more choice in how to “invest” those discretionary dollars. As a government “you shouldn’t make losers of your own citizens,” Grey says.
They Give Everyone A Bad Name
Those settlement companies that make false claims about how fast you can get money from the sale of your structured settlement tend to give all settlement companies a bad name. The truth is there are very few settlement companies that aren’t open and honest with their clients.
The majority of structured settlement companies have good business morals. They’re open and honest with their clients, and do what they say they’re going to do. If you have doubts about a settlement company, check them out with the Better Business Bureau before engaging in a business contract with them.
Don’t Let Your Settlement Hold You Down
The peace of mind that comes along with receiving payments from a structured settlement is a good thing. You know that in the future you’ll have those payments and that’s reassuring. But, there may be other things you could do with the money from your structured settlement that would give you just as much peace of mind.
Do you owe a large debt and you’re facing legal action? Are you facing foreclosure? Is your child support arrearage growing larger by the month? Do you need to further your education in order to realize your dream? As the payee of a structured settlement it’s important to look at all of your options, and make sure you’re not letting it hold you back today for a little peace of mind tomorrow.