Your Structured Lawsuit Settlement Could be Costing You Thousands The Facts About Taxes

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What American consumers don’t know about debt could be costing them thousands every year. Delaying payment or defaulting on student loans, car loans, and mortgage payments could be hurting their credit more than they realize. Recently, studies indicated that American adults are carrying more than $10 trillion in debt. In fact, if 1 trillion one-dollar bills were stacked on top of one another, it would reach over 60,000 miles high, or roughly one-fourth of the way to the moon. Americans owe 10 times more than that in credit and loans, and the amount of our debt continues to grow.

Who has money to save for retirement? Most Americans carry more than $3,500 in credit debt, and some studies estimate that figure to be much higher. About four out of every 10 Americans reports that they spend more than they earn, and they may not realize that making the minimum payments on their credit cards could mean that they are paying double or triple their original debt. Credit cards can be tricky, and once people start using them for cash, to pay bills, or to make car payments, they may find themselves in a position where the only financial solution is to continue using those cards.

In the event of a lawsuit settlement, many people find themselves having to choose between a structured settlement and a lump sum payout. Understandably, they want to avoid the taxes that can come with a lump sum, but what they probably don’t realize is that structured settlement fees and administrative costs could be costing them just as much. For example, if a medical malpractice suit settles for $750,000. If the administrative fee for the structured settlement arrangement is as low as 3% each year, medical malpractice victims could pay more than $20,000 for that service.

Studies repeatedly show that most lawsuit winners — and lottery winners — completely spend their money within five years. Looking for cash for annuity now? You are not alone: $20,000 could pay off credit card debt, pay down a mortgage, or even help start a small business. The startup cost for a small business is usually $30,000 or more; finding cash for annuity now could mean that a new business owner has cash on hand for computer equipment, phone installation, office rental, and down payments for commercial properties.

Getting cash for annuity now is possible, and there are finance companies that specialize in helping lawsuit winners with selling an annuity settlement. Real estate prices are on the rise, but finding that dream home is still a possibility. Not being able to pay the down payment because cash is tied up in a structured settlement? Many Americans see selling fixed annuities and starting a business as the pathway away from a lifestyle of credit card debt, and if cash is invested wisely, they may be absolutely correct.

3 of the Nicest Things People Have Done After Winning the Lottery

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There are two main ways winners can receive their lottery payments — as either lottery lump sum payouts or as lottery annuity settlements — but there are billions of ways that money can be spent, some of which are nicer than you might think. Here are a few of the more unique ways people have used their new riches.

Upgrading the ‘Ol Alma Mater.

Gloria MacKenzie won the lottery at the ripe old age of 84-year-old, and knew just what to do with her money. First, she upgraded her home. Rather than continuing to live in a shabby shack with a tin roof, she bought a 6,322-feet-square home in one of Jacksonville’s gated communities to the tune of $1.2 million. Then, she dropped another $2 million upgrading her former hometown high school in Maine, where her daughter taught biology at the time.

Building a Waterpark.

When John Kutey of New York won the lottery back in 2011, he decided to spend his $28.7 million giving back to his community. He used the money to demolish a local wade pool, and install a new, $250,000 spray park. The park opened in 2013, and though Kutey and his family lived in Florida at the time, they made it to the grand opening.

Giving to Charities.

Robert Erb of British Columbia won a cool $25 million in November of 2012. That year, Erb estimated he spent more than $8 million giving charitable donations and gifts to individuals in need, including 10 cars, $300,000 in dental care, and $70,000 fixing up the local community association’s facility. He also left a $10,000 tip at a restaurant after he heard about the owner’s daughter being diagnosed with cancer. Oh, and the 61-year-old donated $1 million to support the legalization of marijuana.

It doesn’t really matter whether you decide to get lump sum payout or an annuity, just so long as you invest it wisely, as these folks have done.
If you have any questions about lump sum payouts or annuity settlements, feel free to share in the comments. More like this article.