The Advantages of Taking Retirement Lump Sum
With your bulging bank account, you may be tempted to fly business or first class and stay at the 5-6 star hotels. You develop habits of dining out more, whereas when you were working you rarely dined out more than twice a year. It's human behavior influenced by a consumer oriented society with the media saturation to buy and spend, which can make taking the one off payment a losing proposition at the end of the day
Before you decide whether to opt for the fixed monthly pension payments or the retirement lump sum, it's imperative that you consult a professional financial expert.
Lump Sum Structured Settlement Overview
You may have been injured and a lawsuit was granted in your favor. One scenario is as follows. For the next 30 years you could be receiving steady monthly payments that increase every year by 3% this is called a structured settlement from a lawsuit or personal injury settlement. If you are getting say $700 a month for next 30 years or 360 months this comes out to $252,000.00 there are other options to this settlement. These $700 a month payments seemed great in the start but now you need more money, lots more. You can get more money from your settlement read more to see how. You may have received the first 5 years of the 30 and now you are wondering if there are ways to sell or get more cash from your settlement. Some problems with this are that you cannot borrow against it, nor use it as collateral. What is permitted is an option outlined by law to sell some or all your future payments in exchange for a lump sum. A court order must be obtained to allow a lump sum for structured settlements.
Get a Lump Sum of Cash For a Structured Settlement.
Now because of rising expenses and a need for cash the desire may be a lump sum. Structured settlements have advantages and disadvantages when thinking about keeping them or holding on to them. Lump sums of cash as approved by a court order can be used for many of the following:
Down payment on a new home
Get out of debt that you are drowning in
Pay off credit card bills
Pay medical related bills and services
Buy a new device or equipment that would help your disability
Pay piled up business expenses or fund a business
Education tuition and school bills
New car or payoff of a car
Home improvements that are desperately needed, such as a new roof
The final decision will ultimately be the judge that is looking at your request. Most requests are approved, but it is not guaranteed that all cash transfers will be approved. There are some items in the settlement that may not allow for the sale of future payments, there may be a non assignment clause, an age to sell clause or other type of restriction. In any case when you need a lump sum from your structured settlement there are ways to do this and it is fairly common now to get cash from your future payments. Find a present value calculator on the web and see what your future payments are worth today. This will help you get a ruff estimate of what the future payments are worth.Article Source: is associated with
Lump Sum
Before you decide whether to opt for the fixed monthly pension payments or the retirement lump sum, it's imperative that you consult a professional financial expert.
Lump Sum Structured Settlement Overview
You may have been injured and a lawsuit was granted in your favor. One scenario is as follows. For the next 30 years you could be receiving steady monthly payments that increase every year by 3% this is called a structured settlement from a lawsuit or personal injury settlement. If you are getting say $700 a month for next 30 years or 360 months this comes out to $252,000.00 there are other options to this settlement. These $700 a month payments seemed great in the start but now you need more money, lots more. You can get more money from your settlement read more to see how. You may have received the first 5 years of the 30 and now you are wondering if there are ways to sell or get more cash from your settlement. Some problems with this are that you cannot borrow against it, nor use it as collateral. What is permitted is an option outlined by law to sell some or all your future payments in exchange for a lump sum. A court order must be obtained to allow a lump sum for structured settlements.
Get a Lump Sum of Cash For a Structured Settlement.
Now because of rising expenses and a need for cash the desire may be a lump sum. Structured settlements have advantages and disadvantages when thinking about keeping them or holding on to them. Lump sums of cash as approved by a court order can be used for many of the following:
Down payment on a new home
Get out of debt that you are drowning in
Pay off credit card bills
Pay medical related bills and services
Buy a new device or equipment that would help your disability
Pay piled up business expenses or fund a business
Education tuition and school bills
New car or payoff of a car
Home improvements that are desperately needed, such as a new roof
The final decision will ultimately be the judge that is looking at your request. Most requests are approved, but it is not guaranteed that all cash transfers will be approved. There are some items in the settlement that may not allow for the sale of future payments, there may be a non assignment clause, an age to sell clause or other type of restriction. In any case when you need a lump sum from your structured settlement there are ways to do this and it is fairly common now to get cash from your future payments. Find a present value calculator on the web and see what your future payments are worth today. This will help you get a ruff estimate of what the future payments are worth.Article Source: is associated with
Lump Sum
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