Things to Consider When You Receive a Lump Sum

If you are currently receiving payments through a structured settlement and are interested in receiving some or all of your future payments now, 123 Lumpsum can help. We are a specialty finance company that applies expertise in institutional financing, underwriting, and the law to purchase future cash flows for our clients. Call us toll-free at 877.Y.NOT.NOW (966-8669) or request a free structured settlement quote online.

We would like to provide you with a few things to keep in mind as you prepare to receive your lump sum. Prior to receiving your lump sum, you should be prepared with a game plan. Financial experts recommend the following:

  • Don’t start giving away your money. There may be some financially needy people in your life, but before you share your wealth with them, take stock of your own financial priorities, and attend to them first.
  • Don’t immediately purchase big ticket items. Use financial software to create a budget and see what you can reasonably afford now given your long term financial goals.
  • Don’t blindly invest your money on the “next big thing.” Get advice from several investment professionals and consider it carefully before you move forward.
  • Do not start a business without adequate preparation. The thought of being your own boss is tempting. However, purchasing a restaurant if you don’t have a background in the food service industry may be premature.
  • Don’t do anything you wouldn’t normally do. Chances are that up to this point you have been living a frugal lifestyle, and you actually shouldn’t change it too drastically. Maintaining good spending habits will make your money last longer. This is not to say you shouldn’t treat yourself on occasion, but why switch to name brands if you have always been fine with generic ones?
  • Don’t spend money or undertake any obligations prior to actually receiving your lump sum.

Overall, you should allow yourself some time to think things through and carefully plan what you will do with your lump sum in order to obtain the maximum benefit from it.