Any one person has a very small chance of winning the lottery but people can and do win. Often times they choose to receive their money over time in several installments. This can be beneficial because it allows them to rely on the income and helps prevent any mismanagement of the influx of money.
Unfortunately for some winners, after deciding to take payments over time their circumstances can change and they may need the money in a lump sum payment. The lump sum payment can be used for medical bills, paying for education, buying a house or even investing in a business. To get the money from their future payments now lottery winners can sell their future payments.
When selling your future lottery payments you want to make sure that you are working with the best company. Some companies give you an offer for your payments that they know is less than the payments are worth. These companies usually resell your payments to a bank for a profit. Eliminating these companies and working directly with a bank can help you get more money for selling your lottery payments.
Working with a bank benefits you not only by eliminating the middleman but also by helping reassure you that you are working with an honest, established company. Many banks are publically traded companies or divisions of a publically traded company. This means that they have a responsibility to shareholders to operate using good business ethics, and also must follow the federal guidelines that govern their business. For example, if you sell lottery payments to AnFed Bank you can feel secure knowing that AnFed is a division of BofI Federal Bank. BofI Federal Bank is a publically traded company (NASDAQ: BOFI) and federally chartered. They have little incentive to treat you poorly because of their other interests.
Working with a bank is the best way to try and find a good return for selling your lottery payments. You will likely receive a better offer than you would with some other companies and you know that the bank is unlikely to wrong you.
