What Will You Do When You Cash In Your Structured Settlements?

Buying an annuity with a lump sum

Having a structured settlement from an inheritance or a lawsuit works for a lot of people. It is a nice kind of security, in a way, especially since the payments from structured settlements often last for many years. The payments almost act as a second or third form of income and allow for a lot more freedom.

But some people, who are money and investment savy, might not profit from the form of structured settlements at all. In fact, it may prevent them from raising the capital for the things they want to invest in. What would you do with the cash from selling a structured settlement? Check out some ideas below:

Invest in Yourself
If you have a big lump of money from selling fixed annuities, make sure to directly invest in yourself before making any impulsive purchases. Maybe you can finally pursue a degree you’ve been interested in, or perhaps you can start up that retirement fund that you’ve been meaning to do.

Invest In a Buisness
Why not use the money you have now to ensure that you will make money in the future? A great way to do this is to invest in a business for yourself or with partners. Even if it doesn’t do great, you will have tried to pursue your dreams and become a self-sustaining unit, and that can be payment enough in many ways.

Invest in the Market
Investing in stocks definitely poses a fair amount of risk, but just don’t spend the entirety of the money you made after selling an annuity settlement. Instead, invest portions of it in industries you think will do well and safe holds like mutual funds and government bonds. If you are in it for the long haul, some of your investments are bound to pay off.

Whatever you decide to do with your lump sum, you can certainly make it work for you, and even end up with more money than you started with. Give it some time to decide exactly what you want to do with it, and yourself.

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Laura

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