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Structured Settlement Investment

Updated on June 30, 2010

Choosing Structured Settlement Investment for the Future

There are many pertinent reasons why many people will prefer a one time payment involving a very large sum of money over a structured settlement investment as one of the many options for acquiring profit or financial gain. Prearranged settlement investments are often acquired through various means. This can be attained from a court judgment, an insurance payout, pension and even lottery winnings.

A simple explanation why a payment recipient of a structured settlement fund will decide to sell and trade it over for a big pile of cash, is the impact on life changing opportunities that lies with a very big quantity of ready cash compared to receiving it in incremental amounts on a prearranged timetable. This rationale plays a big role in creating a magnet that pulls many beneficiaries towards financial investors that are very keen in buying these prearranged settlement investments. More often, an individual will very much opt not to wait if there is an option that will permit one large payment in one time.

Downsides to Structured Settlement Investing

However, there are several downsides that an attractive offer like this poses to many blinded recipients. The shortcomings of compelling bids by financial investors to buy structured settlement savings are time and again overshadowed by money or instant cash. Recipients are often not aware of the fact that the original amount of funds that they would have received if they choose to go with the prearranged settlement investment is not as large as the quantity that they will receive instantly. Financial investors are dedicated in seeing the real potential of settlement investment’s profitability in the long run and how they will profit from taking over it.

Recipients tend to take for granted that a structured settlement investment is usually designed to work for their benefit by generating a stable and sturdy source of income for them. Beneficiaries of settlement funds are financially secured with steady revenue for an extended period of time. Nevertheless, the security it offers for some beneficiaries is not as convincing as having accessibility to a hefty amount of ready money now. The value of waiting but having access to a steady flow of funds in the future is every so often treated insignificantly.

Settlement Investment Advice

Being more apprehensive about the present can make a big difference in your future life. Your concern about today needs to balance with what your plans are in the future. The financial need for every individual in our present time can be an urgent persuasion for drastic decisions. These factors can be amounted to several necessities such as home improvements, medical expenses, mortgages and other piling debts. Before you decide to sign any contract selling your settlement investment to the highest bidder, pause for a moment and take into account all considerable aspects that will bring great impact to your life. Your decision now may cost you the security of your future. 

One option to consider before selling is seeking the guidance of financial advisors that will be objective about the issue. You need to make sure that this professional financial advisor is genuinely working independently with no connections whatsoever to any investors that might show any interest in purchasing your structured settlement investment, ready to make you an offer you may not be able to refuse.


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