Tens of millions of people across America today are dreaming of a billion-dollar lottery lifestyle of mansions, fancy cars and exotic travel. But are any of us thinking of annuities? Maybe we should.
A $970 million Mega Millions jackpot will make dreams come true, but a poorly planned rise to riches could become a nightmare.
The first step after winning any large jackpot should be to seek immediate legal, accounting and investment strategy advice. And while you may not think much of annuities, mega-sized lottery jackpots are practically built upon them.
To avoid inclusion in a supermarket tabloid list of jackpot princesses and princes turned paupers, consider how annuities can help ensure that your newly-won cash will fund a lifetime of easy living.
Winners of super-sized lotteries dont get the advertised jackpot in one lump. That $970 million prize is yours only if you take regular annual payments over 30 years with the help of an annuity. Talk to the right legal and financial professionals to see whether the lump sum “ and lower “ jackpot payout or the annuity-based, long-term payout is right for you.
The annuity option may not sound as enticing as a nearly $500 million lump sum payout, but a $970 million jackpot is roughly $30 million per year for 30 years. If you go wild and blow $30 million one year, youll have the peace of mind that another $30 million check is coming. Many annuities also protect your winnings to pass along to heirs so consider that when trying to decide how to take your payout and ask the right questions.
If you pick the lump sum, youll still have hundreds of millions of dollars to work with and no doubt be guided by professional, trusted financial advisors to manage those funds. But some of those new-found riches could be turned into annuities for security, steady income and peace of mind.
Annuities offer a way to keep income coming for longer than the thirty years of payment with guaranteed lifetime income options.
Remember, you might think it would be impossible to spend all of that money. But human nature is what it is and after a few mansions, cars, trips, casino binges and some charitable giving to a hoard of family and new and old friends, you could be suddenly flat broke.
So, dont become a tabloid sob story “ play to win; seek professional advice and counsel if you do and; make sure you keep enough of it for as long as you live by thinking annuities.
About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is the leading association for the retirement income industry and represents the entire supply chain of insured retirement strategies. Learn more at www.irionline.org.
Insured Retirement Institute
Dan Zielinski, 202-469-3026