Example A
George and Family

George needed a down payment to buy a home. His lottery paid him $50,000 a year. After careful analysis, it was clear that selling the next three years was the best option. He received $135,000, which is .90 cents on the dollar for his next three payments. He was able to purchase the home of his dreams. In addition, his tax bracket for the next three years was reduced, and because of the interest on his new mortgage, he actually still got a check every year from his tax refund! It worked out so perfectly, that George decided to sell the entire annuity. He has made some safe investments and is doing a lot better than he would have been just waiting for the payments.

Example B
Lorraine and Daughter

Lorraine is a single working Mom. Her lottery check that she gets once a year helps but $75,000 a year after taxes only goes so far, especially with a mortgage and a daughter in private school. As bills started to mount Lorraine began to utilize her credit cards more and more. Pretty soon she had amassed over $30,000 worth of credit card debt. She knew that paying the minimum monthly payment or even a little more than that would never make the debt go away, so she had to take action. When she called us, we closely reviewed her situation and came up with the best option. Lorraine knew that she needed an income every year, so she wasn't comfortable selling entire payments. We came up with a solution. We bought $15,000 a year from each check for the next 6 years for the purchase price of $70,000. That gave her enough cash to pay off all of her credit card debt, and she still had a sizable amount left over to put in her savings account. This transaction still left an income of $60,000 a year for the next 6 years. In addition, because her payments were slightly smaller, her tax bracket was reduced, which means she will be getting a bigger tax refund check every year! Home Run Lorraine!

Example C
Mel Harris

At 42 years of age, Mel was in debt. He owned a home, and vehicles, but was constantly making payments on everything and never seemed to get ahead. After his divorce, there was even more financial burden. Then one day his luck turned around and Mel won the Lottery securing him $500,000 a year for the next 20 years. This sounds like a massive amount of wealth, but Mel will tell you it sounds like a lot more than it actually is. After taxes, his first check yielded $252,000. After paying off his home equity loan, some credit card debt, his first daughter's outstanding student loans, and younger daughter's college tuition, he was left with about $60,000. There were all sorts of things he wanted to do, like pay off his home, and pay off his cars, perhaps buy a boat, do some wise investing for his future. His dream was to buy the gas station where he worked as head mechanic, as his boss wanted to retire. Although the first check gave him some breathing space, he just didn't have enough to fulfill that dream, regardless of how close it seemed when he won the lottery. When we met with Mel he made a decision and felt very strongly about it. He wanted to sell the whole annuity. We gave Mel 5.1 million dollars for his entire annuity, which is $800,000 more than what he would have received as a lump sum from the lottery. The cash value of Mel's 10 million dollar jackpot was actually 4.8 million. Our 5.1 million, added together with Mel's first check from the lottery, equals 5.6 million, a total of $800,000 more than what he would have received from the lottery! Mel is now a very successful entrepeneur with his own gas station/auto mechanic business and his family is well provided for. Let's just say that Mel doesn't do tune-ups anymore!