Maybe you were excited when you found out you were going to win your case. Dollar signs swirled around your head about all the things that you were going to do. Let’s cover a few of them:
- Buy a brand new, luxury vehicle!
- Buy a house cash and live in it, payment free until you give it to your children!
- Go back to college and get a degree without having to worry about paying off student loan debt when you’re done!
- Pay off any student loans, credit cards, personal loans, car loans and any debt!
- Travel! See the world! Go there, do that, buy the t-shirt!
- Pay advances on all your bills and live worry free for as long as possible!
- Perhaps give some to charity and watch how it hanges lives!
The possibilities were endless in your eyes. The world was open to you and you could do whatever you wanted for the first time in your life. A secure financial future was in the works for you. But then, you heard a certain word: annuity. You were being awarded an annuity settlement. What is that? Well, basically it means that every month or once or twice a year, you will only be given a small amount of your money. There went your dreams. You were still going to have to save up for everything. Or were you? Let me introduce you to something they may not have included in your payout options. You should sell your annuity payments. These means that you would be getting cash for structured settlements. Your dreams could come back! However, there are a few things that you should consider before immediately deciding that this is what you are going to. Let’s take a look at the pros and cons of selling your structured paments.
The advantages of getting cash for structured settlements.
- Getting a lump sum instead of periodic payments means that you could do all of those things that you have dreamed of your whole life. Maybe you wanted to do more than travel or buy a house or just something for yourself; maybe you wanted to buy your parents a house or give your little sister the chance of a life time at the acting school she’s always dreamed of going to. Whatever the case may be, you now can.
- It’s also great because it means you can cut ties with the courts and all the legal mumbo jumbo of everything. Once the money is yours, it’s yours and as long as you pay your taxes and fees associated with getting the lump sum then you’ll never have to hear from them again.
The disadvantages of getting cash for structured settlements.
- Now, while it may be great that you can have all this money at once, what if you can’t handle it? You’ve heard that having a lot of money changes people. If you fear that this may be you, then maybe you should think twice. You have people in your life right now that love you and care about you and vice versa, no money in the world is worth shutting them out.
However, the way to overcome this is to make sure that you stay connected to your loved ones. Let them know that you want them to be honest with you; if you are changing they should be able to tell you or have an intervention for you.
- It’s a big responsibility to make sure that you can be wise when it comes to that much money instead of thinking that frittering away some of it won’t be a big deal. Before you know it, it could all be gone and you’re back to where you were. Living with that kind of regret could destroy a person.
On the other hand, you could always hire a financial adviser or money manager to take care of everything for you and let you know what would be a good decision or not.
- In the long run you could get more money in settlement payments than getting cash for structured settlements because you’ll have to pay to get the lump sum.
Then again, you likely wouldn’t even notice because getting annual payments would never allow you to see it all at the same time anyway.