The secrets that lottery companies are not telling us may shock you. Many persons dream of winning the lottery throughout their lifetime but there are many legal fees and conditions that are associated with cashing in your ticket. Just think of it this way, The lottery is one of the easiest ways out of poverty for many Americans and also in other countries across the world. Edu Baraeva states on Quora that Americans spent over 70 billion dollars on the lottery in 2014. There is a very slim chance of winning the lottery but despite this many persons still take the gamble. This is what happens after you become one of the lucky few to win the jackpot.
The average American spends around a thousand dollars per year on lottery tickets. Why is this, is it because of the share trill or do people actually think they have a major chance of winning? Well one thing is for certain, the lottery is a “way out” for the lower class of American citizens struggling to make ends meet. The distribution between the upper, middle and lower classes for lottery winnings is at its least for those who live in low class communities.
The secrets that lottery companies are not telling us- Lottery Payout options
Before lottery winners go to collect their bounty they have to make an important decision. there are two ways in which lottery winners can collect their prize. The first is by lump-sum payment and the second is by annuity, both types of collecting lottery payments has its perks and demerits. The lottery commissions of the various states within the US and all over the world give their winners these two options for collecting their winnings.
The first option is to collect the payment as a lump-sum. This option is just as it sounds, the lottery commission pays out the proceeds to the winner in one big payment, after taxes have been deducted. The downside to this is that a substantial portion of the money that the recipient wins goes towards taxes . These taxes are supposable used for a variety of reasons including infrastructural repairs and educational assistance for the less fortunate ect.
There is also the fact that persons who have collected their winning proceeds this way are more likely to squander it over a short period of time on unnecessary luxury items. The average winner spends their winnings on 4.5 luxury cars. Some unusual items that lottery winners have bought include a fireworks factory and a pair of new hips for the wife, strange isn’t it?
The second option that lottery commissions offer is the payment of funds through annuity payments. Instead of receiving one big lumpsum payment ,winners are given the option of collecting their money in smaller payments over a specific period of time. Many lottery commissions within the US offer 30 payments over a period of 29 years.
Take the Powerball for an example, they offer a larger initial payment followed by 29 annual payment with each payment being 5% higher than the other. The benefits of choosing an annuity payment plan are favorable where taxes are concerned because people who elect to take this method of payout are more likely to come closer to advertised jackpots than those who opt for a lumpsum payout. The only downside is that the money will not be given at once and as a result of this more financial planning will have to be done in order to spend the money wisely.
What to do after finding out you have won the lottery
This is one of the secret that lottery companies are not telling us. It is ok to be excited after you have found out that you have just won a huge sum of money but the most important thing to do after finding out you have won the lottery is get a financial advisor and a lawyer. These professionals will give you valuable advice on how to spend your fortune and how to not squander it on unnecessary luxuries.
There is also the issue of lottery fraud where unsuspecting winners go to cash in their winnings at the lottery retailer where they purchased it but they are usually told that the ticket is not a winning ticket. The truth is that it is but the retailer would cash in the ticket for themselves and become the recipient of all the money that was won instead of the rightful owners of the ticket.
It is very important to go through the right legal and financial channels and prove the authenticity of your ticket before you cash it in. After doing this you will be able to cash in your ticket with the confidence that it will be accepted and if the retailer tries to trick you then you will have an idea of what legal measures can be taken in order to secure your jackpot.
There are also ways in which a lottery winner can come forward and collect their fortune both with and without giving up their identity. Lottery companies usually love publicity because they know that publicity usually attracts more customers. They usually publicise the jackpot winners in an attempt to show that it is possible for people to win the lottery. There are ways to get around this.
Winners can have their money transferred to a trust fund which will allow them to receive their money with complete anonymity. This process is longer than the regular process as it usually takes a few months for the winner to receive their payment. This has been the secrets that lottery companies are not telling us.
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