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What is a Lottery-Prize Based Annuity?
A lottery annuity is a predetermined amount of regular payments received by a lottery winner usually paid on a monthly or annualbasis over a period of several years.
Some lottery games in the U.S.
offer lifetime annuities that are
paid out as long as the winner is
When we reach retirement we need to balance our nest egg between two main factors:
Reliable monthly checks
Growth for future income. Must be kept safe, cannot be lost.
We have several income now ideas we work with. Below are some examples.
Reliable Income with Structured Settlements
Balancing your nest egg
Ultimate Income Solution
The Teeter-Totter of Retirement Assets
In the book Money: Master the game Tony Robins, a motivational speaker, provides the ultimate income solution: Fixed indexed annuities.
Quotes from pages 428-429:
You receive both a fixed rate of return and the option of a return tied to the growth of the stock market index as well as a guaranteed lifetime income feature.
What Is a Pre-Owned Annuity?
An annuity is a contract between an individual and an insurance company that is designed to meet both short and long-term investment goals.
The individual makes a large lump-sum payment or a series of smaller payments to the insurance company. In return, the insurer agrees to make periodic payments to the individual.
Structured Settlement FAQ's
What Is a Structured Settlement?
Two Other Types of Secondary Market Annuities
Lottery Prize-Based Annuities
Balanced Financial Inc.
3711 JFK Parkwy, #230
Fort Collins, CO 80525
How do they work?
A fixed indexed annuity is fixed, which means your account is guaranteed never to go down, you will not lose your original deposit. However, instead of getting a small guaranteed rate of return like a traditional fixed annuity, your "base account" growth is determined by tracking the gains of a stock market index such as the S&P 500. As an example, if the S&P 500 goes up 8% in a year, you would get to keep a certain percentage of that gain, which is typically subject to a cap. For example, if your cap was 5% of the index you would receive a 5% credit to your base account. But conversely, if the market goes down in that year, you don't lose a dime! If the market drops, even in those nasty 20%, 30% or 50% drawdown years your principal is safe. You get to avoid all the bad years and only participate in the up years in the market index. How in the world can insurance companies give you the upside with no downside? Insurance companies park the bulk of your money safely in its cash reserves, never actually investing it in the stock market. This is how it guarantees your principal. The remainder is used to buy options on the stock market index. If the market is up, you receive your portion of the gain. If the market is down, the options expire, but you don't lose. Win, Win.
Structured Settlements-What are they?
When I buy a structured settlement, what am I buying?
Why is a court involved?