What would happen if you woke up tomorrow morning, checked the lottery numbers, and discovered that you had won the jackpot? What if you came into a significant amount of money due to a lawsuit you won? Would you know what to do next? Would you know what to do with a life-changing amount of money that has suddenly fallen into your lap?
More than likely, what you will be receiving is what is called a structured settlement. This means that your money will be paid out over time. But what do you do if you need cash for structured settlements now? One very appealing option in today’s world is to consider selling your structured settlement. There are many cash for structured settlement offers out there, so consider one that will give you cash up front while still paying you out over time. Whether the lottery payments are $1 million or $500 million, about 70% of winners spend or lose the money within the first five years. That’s not where you want to be.
You can get cash for structured settlements up front, but being smart can also save you from some of Uncle Sam’s share. For example, if you receive a $1 million settlement and take it all in a lump sum, the taxman will grab 39.6%. If, however, you spread it out over a 10-year period, his cut is only 28%. That’s a nice chunk of change! You can save, depending on your tax bracket, anywhere between 25 to 35% in state and federal taxes on interest income. It’s your money. Why not keep more of it?
Shop around for the best rate and service after the sale
It’s important that you do your research to find the right company to work with. Find one that has a good reputation, knows the entire legal process, and is its own lender. Stay away from a company that will just pass you along to someone else.
Choose the company you like the best and begin the paperwork
As you can imagine, there is a good deal of paperwork involved. The company you’ve chosen should have a smooth process for you to follow, showing you exactly what you need in terms of ID, documents to bring and places to sign.
Have the sale of your annuity approved by a judge
Once the company’s attorney on your behalf files the papers, you’ll have a court date assigned to your case. The judge will review your case, make sure you are not putting your or your family’s financial future in jeopardy, and then most likely approve the sale. It’s all relatively simple when you hire the right company to help you sell your structured settlements.
If you ever come into a large amount of money, it’s easy to think that all of your money problems will forever be solved. Don’t kid yourself. You might need some settlement cash now, maybe even a large amount, but don’t forget to plan for your future. There are many cash for structured settlement offers out there. Consider giving them a look, but make sure your money lines your own pockets, not some other guy’s.