Lump sum versus annuity

Do you have a structured settlement with a large amount of money due to you? Perhaps you’ve won the lottery, or a lawsuit. You have plans. Maybe you want to quit your job and see the world. Create a college fund for your kids. Buy your dream house on the beach. Start a business. But if you wait for the annuity to be paid out over time, it may be 30 years before you see all your money. You can however decide to get cash for your settlement and discover pre settlement loan benefits.

What to do when you win the lottery

Once all the excitement has died down, you find that it is a long wait for your money. And if you choose to stay wth the annuity settlement, it will be thirty years before you have all the money that’s due to you. Thirty years is a long time in anyone’s life and your goals and needs will have changed by then. You need the money now while you have the vision and energy to achieve your goals.

Also keep in mind that the value of money depreciates over time due to routine inflation and 5 million dollars will be worth less thirty years from now. On the other hand, if you sell your lotto win for a lump sum, you can access all your money now when you need it, to move on with your plans.

Cash for structured settlement: how does it work?

If you decide to get cash for your settlement, you will be working with a direct funder that has built a relationship of trust over time with banks and other financial institutions. If you’re one of the more than 37,000 Americans who use money from structured settlements each year, you may want to consider the pre settlement loan benefits of selling your annuity.

One of the benefits of an “immediate” annuity is that normally you can begin receiving payments in around 30 days. The vast majority – 92% – of those who sold their structured settlements report that they are satisfied with their decision.

So if you decide now not to wait for your money but to sell your annuity, thirty years down the line you may look back and think it was the best choice you ever made.