90% of the time, selling structured settlement payments is not a good investment decision. In fact, selling structured settlements for cash should be the last option and, even then, the seller should have the knowledge and skill needed to manage his or her investment portfolio competently.
When you stand to lose up to half the long-term value of your structured settlement, you have to be sure you can invest the lump sum in such a way that you will not regret.
A structured settlement offers guaranteed payment that is tax-free; this may not be the case with investments made by selling settlement payments. Furthermore, the regular payments offered by a structured settlement are a source of great comfort to retired individuals and those with an impaired earning ability. A structured settlement offers the advantage of a regular income without having to worry about managing it.
If You Have to, Just Sell a Part of Your Structured Settlement
If one has sufficient business experience, he or she can use the money obtained from selling structured settlements as capital, and the money can also be used to make intelligent real estate purchases. If you really have to sell structured settlements, try and sell a portion just large enough to meet your current needs. Exchanging the security of structured settlement payments for another investment plan has its risks and one should consider alternatives in collaboration with a financial advisor.
An advantage of investing money obtained from selling structured settlement payments is that one gains control of his own finances; with a structured settlement, the control is largely in the hands of lawyers and companies that pay the settlements.
Selling structured settlements can be particularly detrimental to individuals who are disabled, minors, workers compensated for loss, and compensation due to severe injury.
