Making Informed Decisions

A Guide to everything you should know about selling.

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Chapter 1

Structured settlements provide stability, but also flexibility when you sell payments

Money does not buy happiness, but structured settlements can buy peace of mind and stability, allowing you time to focus on other important areas of your life. Of course, making mistakes with your money can certainly buy misery. This is why handling the money in your structured settlement is such a life altering decision. When handled properly, a structured settlement can change your life for the better, making it possible to pay your rent and living expenses, provide for your family, and have the time necessary to focus on other things in life such as family, hobbies and finding some happiness in this world. This structured settlements guide will help you better understand the world of the structured settlement.

Sometimes, a structured settlement helps you to do all of these things – it improves your life and offers stability. But sometimes life can change… difficult things happen. In these situations you may find that you suddenly need a large sum of money to handle whatever life has thrown at you.

But if you have a structured settlement but need cash now then selling your structured settlement payments may be the answer to all your problems.

Let’s consider some reasons why you might want to suddenly sell your structured settlement. Perhaps your payments were helping you pay the rent and live a little, but you were not saving much and have no real emergency fund. Truth be told, you know that you were overspending simply because the money was coming in. But suddenly, your roof is leaking – badly. You need a new roof and you need it before the really rainy season hits, but you do not have the cash that you need. This is a good example of when selling your structured settlement payments might really help you out. But, you have to consider whether you will be able to live without that income stream.

That is what this structured settlements guide is about… in these pages Strategic Capital professionals will explain to you why a structured settlement is such a great financial tool and how it can help you to secure your financial future.

But we will also acknowledge that sometimes life happens and you may find that you need to sell all, or preferably some, of your payments to get through a difficult time.

This guide will explain that selling is alright, as long as you do it thoughtfully and for the right reasons.

Why Have a Structured Settlement in the First Place?

So, you may wonder, if so many people have a structured settlement but need cash now and consider selling their settlements that entire guides are written about it then why are structured settlements even created in the first place? The short answer is that these settlements protect people. From who? Well, from bills, from pressure, and to be honest, from themselves.

When someone is injured or damaged in some way and they are about to receive a lump sum of cash to help make amends this can change their world. Suddenly, a person who probably never had more than a few hundred or a few thousand dollars in their possession at once finds themselves holding tens of thousands of dollars, or more.

The power can be too much and many people go a bit crazy, spending wildly and pushing through their money in no time.

 
Enter structured settlement options. Structured settlements were created in Canada in the 1980s to protect people; they soon caught on in the United States. Some people complain that settlements interest rates are so low that it is simply not a good investment tool; this is not necessarily true. Yes, structured settlement money is invested in a low risk, relatively low return investments, and thus it grows little. But the point of such a settlement is not growth, it is security. If you received your settlement in a lump sum and invested it you would risk losing it. With a structured settlement there is no risk – they are designed to provide security and peace of mind during the physical or emotional healing process.

Settlement payments were designed to guarantee a steady stream of income to cover medical bills, living expenses and so forth. And they protect people from the pressure of having to invest and the temptation to overspend. The structure was designed to serve you.

If Structures are so Great then Why Sell?

You may wonder why a person would want to sell a structured settlement if they are so wonderful. You probably know the answer if you are reading this guide – sometimes things happen in life and you simply must have a lump sum of cash to manage the situation. That is why federal law, and in many cases state law as well, protect a person’s right to sell their structured settlement if a real need arises.

Another great part of a structured settlement is that they provide some level of flexibility. You can begin in a structured settlement, but then sell part, or all, of your payments to meet a sudden financial need. However, if you were to take your settlement money as a lump sum initially you could not go back and decide to put your money into a structure later. Thus, starting out in a structure makes good financial sense and provides options in the future.

Should I Sell My Settlement?

Deciding whether or not to sell your structured settlement is a major decision. Like buying a house or getting married, deciding to sell a structured settlement should be done with thoughtfulness and by taking your future security into consideration. For some people, selling their settlement payments is the key to a more solid financial position in life, but remember that this is an individual decision, one that you must make considering your own unique circumstances.

Be informed!

Take the time to understand the value of your structured settlement, considering the potential repercussions of selling your settlement payments, and comparing those trade-offs to what you will gain if you sell. Do not let anyone pressure you. Take your time and make the best decision for you and your family.

 
Continue reading this guide and checking out the Strategic Capital website to learn more about how you can benefit from keeping your structured settlement or how you can sell a structured settlement to change your life. You can also learn a bit about money management and more, ensuring that you make the best financial decisions that you can.