If you’ve recently won a legal settlement or lawsuit, there’s a good chance that you will be receiving this money through structured settlement annuity payments. This means your money won’t be paid out all at once; rather, you’ll receive regular payments over a set period of years.
Many people stick with their structured settlements due to the tax benefits they offer. Over time, structured settlements are worth much more than lump sums, because they’re taxed much less heavily.
However, structured settlements are just that: structured. It’s very likely that you’ll want to make a major purchase or investment within the next few years, but won’t be able to due to your settlement money being allotted into structured payments. For this reason, a growing number of Americans are choosing to sell these structured settlements in exchange for a lump sum of cash.
Still not convinced that you’re making the right financial decision by choosing to sell your structured settlements? These three benefits of getting cash for structured settlements will have you convinced:
Circumstances can change unexpectedly
Your structured settlements might be a great thing at one point — but what happens if you have a medical emergency, a loss of your job or mounting debt with no way to pay for these emergencies? If you try to withdraw money from your structured settlement early, you could face a hefty early-withdrawal fee. As a result, deciding to sell your structured settlements can be a way to bring yourself out of your financial emergency without going into debt.
Investment opportunities may arise
There’s no better way to grow one’s funds than through investing. Whether you’re thinking of investing in a startup business, the stock market or real estate, you’ll likely need a good chunk of money to do so. When you sell your structured settlements, you’ll have the cash you need to invest and grow your wealth.
You may want to make a major purchase
Major purchases like homes and cars require major down payments. If you need most of your settlement money in order to make a down payment on a new purchase, it’s a smart idea to sell your settlement payments.
Do you agree with these reasons? Have any other questions about selling a structured settlement or annuity settlement? Let us know by leaving a comment below. More. Read more articles like this.