What are Cash Structured Settlements?
Accident settlements, especially those involving car accident injuries, usually involve money paid directly to the victim or the victim's heirs. The accident or personal injury settlement may not close for months or possibly years. In anticipation of many small periodic cash payouts for cash structured settlements, you can receive advance payment, often an immediate, single cash disbursement, depending on the specific terms of your case.
How much will a cash payout option for my structured settlement cost me ?
The shortest answer is that you will be selling your structured settlement to get a single cash payout as soon as possible and that will cost you much money.
Consider the lottery winner who won 20 million that is to be paid out over 20 years.
Taxes will take the most from the yearly payout, but over time the winner could investigate shelters to protect some of it. A one time payout will increase the immediate tax payment simply because there is more taxable income that gets taxed by a percentage.
Since the company providing the cash structured settlements won't be earning interest on winnings, they most often reduce the single lump sum cash payout option by about 50%.
Your ability to invest the winnings instead of spending everything also determines how beneficial a cash payout will be to you.
Do I need money now?
This is probably the most important question for you to honestly ask yourself. Taking a vacation or adding on to the family home or even paying medical bills with cash from structured settlements may seem like a good thing to do at the moment, but those types of choices are all liabilities. They take money from your pocket.
Some of the most responsible reasons to sell structured settlements may be unavoidable and that's the troublesome decision. The second question to ask in this situation is "Where else could I get money to pay off these liabilities or how could I restructure them?
Selling structured settlements
There are many unscrupulous businesses in the money industry. Investigate the company and obtain assistance from a trusted attorney.
Here's what many buyers of cash structured settlements won't tell you.
The buyers interest is in the money and a settlement structured asset in their best interest. So will you be obtaining an asset for yourself or creating greater liabilities?
If you have a sound investment plan that will put this money to work for you, then it can become an asset. The single cash payout option for cash structured settlements can be invested in simple interest bearing accounts, real estate or other businesses that return money back to you.
At the outset this sounds like a tremendous opportunity. It is, but without proper knowledge most people who obtain sizeable fortunes all at once, often become bankrupt within one year. They continue to live a limited income mentality with wealthy, but limited resources.
If you're obtaining a sizeable lump sum, I highly recommend that you read Rich Dad Poor Dad by Robert Kiyosaki. The simple cost of that book can return to you many times over in preventing you from making a mistake with an investment of settlement structured money.
You can always get a free quote for structured settlements here: