When people purchase lottery tickets they know from the very beginning that in the unlikely event that they win the jackpot, they will have to make one important decision. More precisely, they need to choose between a lump payment and an annuity, with both decisions having some unpleasant consequences. It would be excessive to spend a lot of time thinking about what to do in case you actually get lucky, but it doesn’t hurt to know your options.
Let’s take the case of Duc Phan as an example, with the Vietnamese fleeing his country more than three decades ago to live the American dream. He occasionally purchased lottery tickets and recently won the main price in the Lucky for Life lottery, which means that he will receive $2500 every week for the next 25 years. In his case, there is no choice to be made because the very name of this lottery implies the fact that his account will be credited with a fixed amount for many years to come.
http://www.lotterycrunch.com/vietnamese-refugee-wins-lucky-for-life-lottery-3335/ presents those interested with an insight into his life and background, offering some valuable information. He spends no more than five dollars to collect a jackpot in excess of $3 million and unlike other lottery winners he didn’t have to wait for a couple of days. The best thing about scratch off lotteries is that you know right away whether you’ve lost a couple of dollars or won big, without unnecessary delays.
The advantage of such a lottery is that you can rest assured that no matter what happens in the next decades you won’t get broke. Having such a safety net in place should allow winners to focus on the things that actually important to them and make bolder attempts. On the other hand, there is always the risk of complacency, as some people decide that they are now set for life and don’t even try to improve anything. Keep in mind that the Vietnamese winner will receive an amount that is less than the average monthly wage, so this would deprive him of the inherent advantages of winning the lottery.
This brings us to the reasons for why most winners choose a lump payment, because they get the full amount transferred to their bank account. From that point onward they decide what to do with the cash, although most of them prefer to dwell on the interest collected and don’t take risks by investing in potentially lucrative but tricky ventures. The main downside is that such an amount leaves you vulnerable to volatility and you are also subject to higher taxes, so the amount you receive is diminished.
Lottery officials recommend readers to choose the community and even though very few follow their advice, there are good reasons in favor of this recommendation. Those who play in the Lucky for Life lottery on the other hand, don’t need to worry themselves about making the right choice because there is only one path to follow.