If you’re thinking about selling your annuity settlement or selling a structured settlement, there are plenty of reasons why it might be a great choice for you.
Maybe you’re interested in going back to school — the average private university charges $31,231 annually for tuition these days, and even the average state school charges $9,139 for annual tuition.
Maybe you’re hoping to buy a new house — which costs $272,900 on average. Perhaps a new vehicle? That’s typically around $33,993.
Maybe you just really want to pay off some debt, because if you’re like most American consumers, you’re paying about $950 each year just to cover interest on loans.
Regardless of why you’re thinking about selling a structured settlement, it’s important to realize that there are plenty of good options available to help you through the process. It’s also important to realize that some people may benefit more than others from selling a structured settlement, so the best way to figure out if it’s a good choice for you is to look at both sides of a settlement and see whether the cons outweigh the pros:
- If you end up with a settlement because of a lawsuit, you may have the ability to choose how long your payments will last and how much you’d like each payment to be.
- You often have the option of receiving your payments immediately or deferring payments for a certain period of time.
- The payments come on a regular basis, making them a bit like annual paychecks and making it easier to plan your budget.
- Structured settlement payments don’t depend on the strength of economy, unlike stocks and real estate investments.
- Many people end up in structured settlement because they don’t have any real choice in the matter. When it comes to lottery payments and lawsuits, your only options are to receive everything upfront or to receive smaller payments over a long time.
- Taxes! Although you don’t have to pay taxes on the money sitting in your settlement fund, your payments are considered income and you’ll have to pay taxes on them.
- Once the terms of your settlement are finalized, it’s nearly impossible to go back and change them.
- All the money in the settlement fund is yours, but you can’t access it! Even in an emergency, you’ll face high early withdrawal fees.
So now it’s time for you to decide — is selling your structured settlement the best choice for you?