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Can I Sell My Lottery Payments for a Lump Sum?

This is a guest post.

Winning the lottery is everyone’s dream. You hit the lotto, cash in your ticket and kiss all your troubles goodbye, right? Actually, that might not be true. Just look at the number of lottery winners who’ve ended up worse off than they were before they hit it big. There are several problems here. One problem is that people often spend their money unwisely, without learning how to manage it properly. Lottery annuity payments were designed to help with this. However, those annuity payments might not actually be enough to make a significant difference in your life. If that’s the case, you might be wondering if you can sell your payments for a lump sum. The answer is, yes, you can. But there’s a catch. Actually, there are a couple of catches.

Buyers Matter

First, let’s talk about buyers. They’re the ones who’ll be paying you a lump sum for your lottery payments. Now, you can’t expect a buyer to offer the full amount you’re owed from the lottery, but you should be able to expect a significant percentage of the winnings. That’s not the case with many buyers. They recognize your desperation and have no qualms about taking advantage of your situation. That’s not true for all buyers, though. You need to recognize qualified buyers from those better left alone. Obviously, that’s tough to do on your own. Most people have never been in the position of having to sell lottery payments before, and it’s easy to get lost in a world with which you’re not familiar.

Sell Only Part of It

Another important consideration is whether you need to sell all of your lottery winnings or only a percentage of them. You can easily sell just a specific portion of your winnings, enough to cover your immediate needs, and retain the remainder as regular ongoing payments. This ensures that you have the money you need right now, as well as a financial cushion for the future.

Work with a Go-Between

The ideal solution to your quandary is to work with a firm that acts as a go-between. The company will vet and investigate buyers, ensuring that you only have the cream of the crop to choose from. Not only that, but working with a reputable firm will also ensure that you get the highest percentage possible of your winnings, rather than leaving you with a mere pittance.

Of course, not all such firms are the same, and you need to recognize a reputable company. Look for a firm that’s been in business for a number of years – one with an established reputation and a list of satisfied clients. Second, make sure the company doesn’t work for the buyers – the firm should work for you, the seller. This ensures there’s no conflict of interest. A company that works on behalf of the buyer has no incentive to go above and beyond to ensure you get a fair deal. One that works for you certainly does.

Funeral Costs: How to Keep it Inexpensive, Without Being Cheap

Finance, Life

MIAMI - JANUARY 24: A pallbearer for Poitier ... — Image by Getty Images via @daylife

The average funeral costs $6500. Many people die with absolutely no savings. Even if there is life insurance, it takes weeks to get the money, while a funeral is completed within a week.

Funeral homes have an easy sales pitch. Nobody wants to sully the memory of their loved ones. The tiniest hint of a guilt trip will have most families upgrading to the silk pillow in a second. Here’s a secret: Your loved one doesn’t care. I’m not recommending using garbage bags and a dumpster. By all means, treat your loved ones with care, but don’t go overboard.

Not everyone is comfortable with cremation, and some religions don’t permit it, but it is probably the least expensive way to process a body. It costs approximately $1400 to cremate a body and you can get very attractive urns for under $100. Compare that to a $3500 casket and storage & transportation fees, and–from a strictly monetary standpoint–the choice is clear.

Don’t worry too much about decorating. Flowers aren’t cheap and florists don’t tend to offer discounts to people who aren’t emotionally prepared to negotiate and who are in a time crunch to find the flowers they need. Get a few bouquets for a small display around the casket or urn, and let the rest take care of itself. Many of the guests will bring flowers, so the entrance will soon be decorated for free, and that’s the part that makes the first impression.

Shopping online can save you a lot of money on an urn. Funeral homes will try to sell you a $500 urn, which may include a 1000% markup. If you buy online, you will have to pay for overnight shipping, but that’s a small cost compared to the standard markup. You can also find a huge discount on attractive caskets by shopping outside of the funeral home. Federal law prohibits funeral homes from requiring that you buy a casket from them or charging you a fee for getting one elsewhere.

This may be the most ghoulish part of this article, but you can dig the grave yourself. It’s probably not worth it for a full-size casket, but for an urn, you can save hundreds of dollars. An urn generally only needs to be buried 18 inches deep, as opposed to the 6 feet required for caskets. Just be sure to check with the cemetery and get the burial location right. If you think it’s ghoulish to dig the grave, just picture digging it up. Not fun.

Planning a funeral is never enjoyable, and it’s often expensive. Nothing you do will make it fun, but it is possible to make it affordable.

Have you had to coordinate a funeral? Did you take the funeral director’s recommendations, or did you cut some costs?

What is a Mechanic’s Lien?

Finance

: Image via Wikipedia

When you hire someone to work on your property or provide material to build or improve it, they are entitled to get paid. A mechanic’s lien is the method of enforcing that payment.

Here is what you need to know about mechanic’s liens.

A contractor must usually give you written notice of intent to file a lien if the contract isn’t paid. He needs to do this within a short time of beginning the work. The notice will include text to the effect that subcontractors also have the right to file a lien if they are not paid. This notice gives you two methods of defense: You can pay the subcontractors directly and withhold that amount from the payment to the contractor, or you can withhold the final payment until you have received a lien waiver from each of the subcontractors.

If the notice isn’t given correctly, the contractor forfeits his right to file a lien. Also, in most places, if a contractor is supposed to be licensed to do the work, but isn’t, he’s not able to file a lien.

Subcontractors must also provide notice on intent within about 45 days–depending on the state–of the time they first provide services or material, or the lien is not enforceable.

Protecting Yourself

First, you only have to pay once. If you pay the contractor in full before getting the notice of intent from the subcontractors, you can’t be forced to pay again.

Next, make the contractor provide a list of all subcontractors and keep track of any notices of intent you get. Get lien waivers from everyone involved before you make the final payment to the contractor.

Finally, you have the rights defined in the notice of intent to file a lien. You can either pay the subcontractors directly, or you can withhold the final payment until you receive lien waivers from each subcontractor.

Resolution

The lien holder has 120 days to file the lien and 1 year to enforce it. Enforcing simply means that it a suit has been filed. Once that happens, you can either pay the contractor, attempt to settle with the contractor, or you can take the contractor to court to determine the “adverse claims” on your property. There aren’t too many choices at this point.

Do yourself a favor and get lien waivers before you make the final payment on any work done on your property.

10 Ways to (re)Use Shopping Bags

Finance, Parenting

: Image by publicenergy via Flickr

When I go shopping, I don’t bring my own grocery bags…mostly because I’m not a hippy. I do tend to double-bag my groceries just so I can bring more shiny plastic bags home to play with. What do I do with them, you ask? I’m glad you asked, because that is why I am writing this post. Thank you for cooperating.

Here are my favorite 10 things to do with shopping bags:

Garbage bag. When I’m cooking, I hang a shopping bag on the drawer handle where I’m working, so all the scraps can go straight into the trash. I just slide the onion skins or pepper cores off the counter right into the bag.
Garbage bag II. Why buy small garbage bags for that tiny can in the bathroom? A plastic shopping bag works just as well.
Pooper scooper. Instead of buying some gadget or even a little roll of bags, just tuck one of these into your pocket when you take the dog for a walk. Instant poop removal.
Paint brush saver. When you are painting, if you have to stop for the night, wrap your brush in a plastic bag and put it in the refrigerator. It will be ready to use in the morning, without have to clean it or pick out dried paint flakes.
Halloween mask. Draw a lipstick mouth on the bag, pull it down and you are an instant “bag lady”. Seriously, this is bad advice. Don’t put a plastic bag over your face, no matter what some jerk on the internet says.
Power-strip water-resistor. I go a bit crazy decorating for Halloween. Right now, there is a lighted path, 2 coffins, a few full-sized monsters, 30-40 tombstones, and over 100 skulls in my yard. Some of that is animated. I wraps power strips and extension cord connections in plastic bags, then duct-tape the bag-seams. I’m not an electrician, or a code-compliance officer, so don’t take this as advice, but it has worked well for me.
Recycling bin. This requires paper bags, not plastic, and it makes me a bit of a hippy. I keep a paper bag next to the garbage can just for the recycling. I keep another handy just to use to collect junk-mail for my primitive alternative to a paper shredder.
Dirty laundry. I’ve got 2 kids in different stages of potty-training. When fit hits the shan, so to speak, the dirty/wet clothes go into a bag that I conveniently keep in the diaper bag. I knot that sucker tight and the scents and stains don’t get all over the stroller or the car.
Dandelion torture chamber. If you’re the kind of person who likes to roam around your yard with a scissors, cutting the heads off of dandelions while they are still pretty, there is no better place to store the mutilated remains of your victims than a shopping bag from Target. Show those other weeds what happens to trespassers! I wish I was making this up.
Car kits for kids. Before we go on a trip, we have the kids fill up a small bag with books and toys to keep themselves occupied for the drive. This isn’t recommended if your kids have to taste everything they touch, but it’s been a simple-yet-elegant solution for us.

Do you use shopping bags for more than just a way to transport clutter from the store to your house?

Saturday Roundup: Winter Wonderland

Misc

Today, I am planning to be on the receiving end of a foot of snow coming in at 30 miles per hour. Tomorrow, when it’s time to clean all that crap out, it will be 30 degrees below zero. Fun!

The drawing for a $100 Amazon gift card is still going on! Go here for details. It ends on the 15th, so you have 4 more days.

Best Posts

Santa’s got a new phone number! It plays a simple message when you call it, but it’s an easy way to make a little kids smile.

How many days of your life did that that new gadget cost you?

Go watch Crystal get all survivalist and stuff. Have you ever though about what would happen if the world as you knew it ended? Even for a few days, say, after a hurricane hit?

It’s great to live in the future. I can’t wait to hit Lunar Starbucks.

LRN Timewarp

For those unfortunate enough to not have been tuned in since the beginning, I’m going to spend some time reviewing posts from a year ago.

In How to Have a Perfect Life, I layout the planning necessary to live a life you don’t regret on your deathbed. Just take the first step.

Babies are Expensive is one of my most-visited posts to date, and was my first carnival submission, and my first editor’s pick for that submission. The truth is, babies are expensive, but they don’t have to break the bank.

Don’t Screw Future-You was a fun post to write. What would the you from 20 years in the future have to say to you?

Carnivals I’ve Rocked

Consumer Action Handbook was included in the Carnival of Personal Finance.

Mistakes Made was included in the Carnival of Money Stories.

Thank you! If I missed anyone, please let me know.