What do the winners of 'America's Got Talent'
and other game shows
do with the million dollars they win?
Strangely,
they may make a decision
that cuts you in on their winnings.
Well…they don't get the million dollars in a lump sum.
Read the small print at the end of the show.
You may see they receive an annuity paid out over 40 years. That could be about $25,000 a year.
They may later decide they would like to have a lump sum (of course it would be much smaller).
They may want the money to spend to enhance their career.
Or just to spend on a new car.
Or to start a new business.
So they sell their winnings.
The payout, as mentioned before, is in the form of an annuity issued by an insurance company.
And, if you have the right connections, you can buy these fixed returns.
They are not always game show winnings.
Some are lottery winnings.
Some are structured settlements awarded from lawsuits.
Some are long-term, some short-term.
Most will return 3 ½% to 5 ½%. A few are even 6% or more.
You pick what you want.
You know the exact rate and the exact term before you choose.
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