Maximizing The Time Value Of Lottery Earnings
In simplest terms, the theory of Time Value of Money states that when all things are equal money in hand today is worth more than the same amount of money in the future—say in a year from now. For you, this means that it is better for you to have your money now rather than wait for it. That way you can use it to make purchases or to invest at a rate of return. But if you are collecting lottery payments over time you probably chose that option because you would get more money in the end; it's already invested. So does this mean that you have already hedged against the future value of your money? Maybe and maybe not. Let's consider this point from all angles.
What Is Your Money Costing You?
Consider this. If you do not currently have your money in hand, then you do not really have it, do you? The annuity purchased by your state's lottery commission does. In order to spend your money you have to borrow money from someone else (at their discretion, too). Any time you borrow money it is at a cost to you; it costs you fees and interest. And that cost will continue on for years until the debt is repaid. In other words, it costs you more every time you have to borrow money than it would if you had your cash in hand and had the ability to pay cash money. And if the interest that you are paying is a higher rate than the interest your money is earning, then you are losing even more, and that cost will not be recouped by waiting for the accumulation of interest and collecting the full amount.
Will The Value Of Your Money Keep Up With The Future?
Ask your grandparents what a gallon of gasoline cost them when they started driving. Guaranteed (unless Grandma got her license yesterday), they paid significantly less than you are paying for that same gallon today. Why? Because the cost of living is always increasing, and the value of the dollar over time depreciates; you can have more buying power today with a smaller amount of money than you will tomorrow with a larger sum. You can do more with less today than you can with more tomorrow. This, too, factors into the true time-value of your money.
The Value Of Money In Times Of Need
All of this is a bit irrelevant if you have a financial need today. With bills, debts, and living expenses increasing by the day, it is very hard to keep up financially. Now add insult to injury and consider that you are struggling, even though in fact you have thousands or more owed to you. It hardly makes sense, does it? It makes no sense at all.
Your money is worth the most to you if you have it when you need it or you want it. And you can get it. PPI Cash will buy your future lottery payments and pay you in one large lump sum payment. Then you can really enjoy the full value that your winnings hold for you personally.
Have more questions about the value of your money? Need help deciding what option is right for you? Ready to apply and request a free quote with no obligation? Contact PPI Cash now; we only need the next few moments of your time.
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