Some people consider cash for future payments to pay for holiday gifts. Certainly we all love buying presents for those we love. But getting cash for future payments is not to be taken lightly. It seems that the holidays are always just around the corner. There are birthday presents to buy, graduation and wedding parties to attend, and Christmas expenses every year. For many families, Christmas is an exciting and important time where we enjoy family and friends, and we want to show that appreciation by giving gifts and making the time seem more special.
When the holidays are upon us, it means gifts and other holiday indulgences. But gifts cost money, and annuitants with structured settlements may be tempted to break into their settlement “piggy bank” to get that ready cash for this year’s expenses. You need to think twice before you get cash for future payments.
Is Selling Payments a Good Idea?
Every year around the holidays time, our customer service representatives are talking with clients about the reasons they have for selling structured settlement payments. We have learned that buying gifts is often mentioned. When buying holiday gifts is a big reason behind a desire to sell a settlement we help these people find other sources of funds for paying for Christmas expenses before thinking about selling payments. Asking people about their reasons for selling payments is part of our commitment to serving our clients.
Even during the busy holiday season, we take the extra time to look out for our clients:
- We want to understand what they need now and in the future,
- We suggest other sources of funds to avoid selling payments if possible,
- We treat them fairly and with respect.
This is how we help our clients balance their present and future financial security. Above all, we try to help them understand the impact that getting cash for future payments now will have on their financial needs for next year, and the years after that.
Making Christmas Count
Most of us recognize that holiday’s, birthdays and other special events are not about the gifts, it is about spending time with family and showing people that we love them. Yet, in our materialistic world this is difficult to truly live because we WANT to give our children gifts, to show those we love how we care with presents. Following are a few tips to keep in mind as you prepare for that special event or holiday:
- It truly is the thought that counts. If your family knows you and knows that you have to be careful with your money, they will understand that you cannot spend a lot on gifts. In fact, they will be happy that you didn’t put yourself into a difficult spot by buying them a present.
- Your children’s security is a gift. Every parent wants to buy toys for their child. But remember that securing your child’s future – ensuring that you can afford their shelter, food, clothing, school expenses – is more valuable than any toy.
- When you do buy gifts, look for sale and clearance items. Shop out of season for the best deals. If you buy one gift a month all year long you can have a nice stock pile by Christmas! Or, save for the holidays. Create a holiday shopping fund by saving all your loose change (some people save all their $1 bills) in a jar and not touching it until it is time to holiday shop.
- Take advantage of the resurgence in layaway programs at many stores. You can shop any time of year and make small, interest free payments on the items all year long.
- Buy one special gift and make it count! Too many people inundate their children and family with dozens of gifts. Instead, at Christmas buy just one special gift and then fill their stocking with little candies. This approach makes Christmas affordable and it makes gift giving that much more special.
Strategic Capital: The Gift of Knowledge
Here at Strategic Capital, we take the time to talk with clients and understand their reasons for getting cash for future payments. We ask about what they need now as well as what they might need in the future. We go this extra distance because we want our clients to make wiser decisions about their financial security, both now and in the coming years. After all, if the piggy bank is broken, there won’t be anything left for the future.