Social Security Lump Sum

A business that buys future payment streams from individuals in exchange for immediate lump sum payments, focusing on areas like lottery winnings, social security benefits, and life insurance policies.

Key Points:

• Social Security Benefits Exchange:

  • Buy future social security payments from people approaching retirement age
  • Offer 70-72 cents on the dollar as upfront payment
  • Collect the full payments over time

• Lottery Ticket Purchasing:

  • Buy winning lottery tickets from winners
  • Provide immediate upfront payment at a discount
  • Currently being done by some banks like Goldman
  • Targets primarily large wins ($1M+)

• Business Model Structure:

  • Calculate appropriate discount rates for different payment streams
  • Profit from the spread between discounted upfront payment and full future value
  • Focus on high-value assets where people prefer immediate liquidity
  • Similar to companies like Carvana but for future payment streams

• Target Markets:

  • Lottery winners wanting immediate cash
  • People approaching social security eligibility
  • Life insurance policy holders
  • Other structured payment recipients

The core concept mirrors OpenDoor's model: provide instant liquidity for traditionally illiquid assets, making money on the spread while giving sellers certainty and immediate access to cash.