When Not to Sell Your Structured Settlement

Should you decide to sell your structured settlement, we here at 123 LumpSum would love for you to contact us.  However, we only feel good about assisting clients with this process if it is their best interest.  Therefore, we would like to make you aware of some times when it may not be prudent for you to sell your structured settlement.

  • You are already financially solvent.  If you can already afford to take that vacation, buy that new home, or pay your college tuition without your structured settlement money, it’s better to continue receiving your standard payments as is.
  • The money will not completely solve whatever issue you have at hand.  Structured settlements are typically designed to support you over a period of time.  Therefore, particularly if you are out of work, taking all the money out at once and using it to entirely cover one item can be a gamble. Fortunately, our agents can design a partial purchase plan for you that leave you with some regular income to cover your regular expenses.
  • You need all the money immediately.  Please understand that even a speedy structured settlement sale takes about 45-60 days to go through the legal process. However, in many circumstances, our customers will qualify for immediate cash in the form of an upfront advance on the proceeds from their closing. Speak to your sales agent to see how much money can be advanced to you immediately.
  • You are not good at tracking your spending.  Take an honest assessment of your habits.  You will want to make sure that you have the discipline it takes to execute financial plan once you have a large lump sum of cash accessible to you. Be sure that anyone who has access to your bank account is also as financially responsible as you are yourself.
  • You are thinking about using the money for a speculative investment.  All investments contain some element of risk.  Just remember the adage that if it sounds too good to be true, it probably is.  Even if you are thinking of using the money to invest in something that sounds very stable, like a new business, consider carefully.  The latest statistics from the Small Business Administration show that 33% of all new businesses fail within 2 years.  Make sure that you are well grounded in the business you are in or which you are going to invest.

If you would like to discuss further if selling your structured settlement is right for you, give us a call today at 1-800-400-9123.  We are happy to speak with you and, if you would like, provide you with a free quote. You may also want to consider to obtaining independent financial or legal advice when considering your circumstances. We are happy to help!