Many people don’t look for far ahead once they have won the lottery or a lawsuit settlement. For many the plan is simple take the lump sum or get the monthly structured settlement payments. The whole process itself can be overwhelming and many are just happy to get everything over and done so that they can move on with there lives.
This is a long drawn out process and is usually a life change event. Whether it is the fact that you won $1 million dollar lotto or if you lost your leg in an accident it is something that will take you by storm and lead you to thinking more about getting what you think you deserve. So few actually plan for the years ahead of the next 3-5 to come.
So Why Should You Be Thinking About the Future
Well one of the reasons you need to consider the future is simple. Once you agree to the terms of the lottery or settlement those are done. No you can go back and ask for a lump sum cash payment and you can change your mind so that you receive the monthly income stream. Once its done, well it’s done!
You are now on your own to fend for yourself and hopefully you can live with the decisions that you make. But what if something comes up unexpectedly and the money you have is no longer enough for you to maintain. What other options do you have instead of waiting on those monthly payments that you chose five years ago?
If you are receiving payments on a monthly bases from a settlement, annuity, or lottery you may be able to get a lump sum of cash for your future payments from a structured settlement buying company.
Selling Your Future Settlement Payments for Lump Sum
If you decided on getting the monthly payments your only option to get money from those payments are to sell them to a structured settlement company. These companies buy structured settlement payments from people and give them a lump sum of cash based on the future value of the money.
In a way you will be giving up some of the funds you are set to receive in order to get the lump sum of cash you need quickly. The way it works it that the company you contact will find out how much you have left to receive from your settlement. You let them know how much you want to receive in cash and they determine how much you have to give them to receive the funds you need.
For example if you have $500,000 left to receive in monthly payments but you nee $50K immediately you may have to give up $75K in order to get the lump sum of cash you need. So you end up losing $25k in the process, which is usual in the business of buying and selling structured settlement payments.