July 18, 2008

Lottery Winnings

Lottery winnings can be a blessing or curse. While everyone dreams of winning a lottery jackpot and becoming an instant millionaire there are certain considerations which should be reviewed before cashing in that winning lottery ticket.

Lottery winnings are subject to both state and federal taxation. Combined, these taxes could amount to 50 percent of the winnings. Individuals who elect to receive a lump sum payment for their lottery winnings receive considerably less than individuals who elect to receive payments over a period of time.

Real Estate Investing article on "Lottery Winnings "

June 05, 2008

Annuity Payments

Annuity payments provide a series of payments over a specific period of time. These structured payments typically evolve from an insurance settlement or lottery winnings. The person who receives the payments is referred to as the Annuitant.

Annuity payments paid to the Annuitant through an insurance company are called Structured Settlements. Payments from a structured settlement are not subject to income tax as long as the money received is the result of a personal physical injury or illness.

Real Estate Investing article on "Annuity Payments"

August 28, 2007

Annuity Payments can turn into a Lump Sum of Cash

Annuity payments are generated from an insurance settlement and provide a consistent cash flow of income upon retirement. These structured settlement payments are typically paid either for a specific period of time such as 10 or 20 years, or for the lifetime of the Annuitant.

Annuity payments are subject to income tax regardless of whether they are received monthly or in one lump sum. Additionally, these disbursements might be subject to fees and expenses including mortality and surrender charges, and management fees.

Real Estate Investing article on "Annuity Payments. What are They?"