What You Need to Consider if You Buy Lottery Tickets Online and Win
Joining the lottery is one gamble many people are willing to take because lottery tickets are very much affordable and, even with the small chance of winning, the prize can immediately change their lifestyles. Whether they buy lottery tickets online or in physical stores, most people may already have plans on what to do with the money should they win: save, invest, or spend. Ultimately, the first question they are faced with is if they will take the annuity or the lump sum.
Responsible and rational people will first determine which of the two options is more beneficial, depending on various factors such as their immediate and long-term needs, and the total amount they can get. They may opt for the lump sum and get it over with, or choose the annuity and receive annually increasing portions of the prize distributed over a certain number of years.
An article in Business Insider advises lottery winners to first consider the taxes and the interest the money can accrue if it’s placed in the safety of a bank. Moreover, it shows a series of computations and reminds winners to choose the option they can benefit from the most:
Whether you should take the annuity or the lump sum depends entirely on what kind of return you can realistically achieve…
As we figured out before the lottery, it really only makes sense to play provided that you take the annuity, according to the expected value. Factoring in investment, though, it only makes sense to take the lump sum if you think you can get an altogether reasonable rate of return.
Some people who have won also have made the mistake of not planning their expenses and immediately leaving their old life behind. They move to a bigger or luxurious place and even quit their jobs as soon as they receive the money without having a definite plan of action. Buying lottery tickets online or in other ways may just be an impulsive act in some cases but when they have won, the next decisions they make need to be considered carefully.
Whatever their future plans are, having financial advisors or planner can help them make sound decisions so they can spend their money wisely. Before all this, however, the first step is to buy lottery tickets from reliable providers like BuyLotteryTix.com.
(Article Information and Image from LUMP SUM OR THE ANNUITY: Here’s Which One To Choose If You Win The Lottery, Business Insider, September 25, 2013)
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