Winning a lottery can be exciting but extremely stressful at the same time! For some, it comes as a shock and for some as a relief; some feel empowered while some others feel threatened by the sudden surge in their financial situations due to winning a lottery. Depending on how the winners choose to use their money, they either opt to receive their winnings as a lump sum amount or in installments. Read on to find on which among them is better!
When you win big, you may be confused about what to do with all that money and how to use it effectively. In India, every day many people stand in long queues to buy lottery tickets and some players also play online. Some of them lose all their money; some win small amounts, while others hit the jackpots. Only a few people understand how to use this money in the right manner and are able to handle winning massive jackpots.
The jackpot winners can avail their prize money in two ways, either immediately as a lump sum amount or through an annuity. If you want to withdraw all your jackpot money at once, then it is advisable that you opt for the lump sum option and use it wherever you may need it. However, withdrawing lump sum amounts has its own risks. When people around you know about the money you possess, they may get annoying and interfere with your plans. Research also indicates that a lump sum is spent a lot more quickly and most winners are brought back to where they started in almost no time!
Alternately, if you decided to avail annuity, you can get your money released in packages at regular intervals. This is a form of contractual agreement that allows you to use only part of the money at any given point. An annuity is always considered better than lump sum as it ensures that you spend in a more controlled manner. This increases the longevity of your money without making too many financial decisions. Contractual spending is better in terms of financial management throughout one’s life. It diminishes the risks of losing all your money at once and provides you with a stable approach to spending money. This is a more pragmatic method to spending your winnings and can also help secure your future.
In conclusion, an annuity is better than lump sum any day as it ensures a stable life and a more down-to-earth approach. With lump sum, the risk of exhausting all your money is prevalent. An annuity provides a regular income and saves your money from theft or other risks. Lottoland is the world’s leading online lottery provider. So, check out their website today and get ready to get rich!