Structred Settlements – Cash Now
If you are like most people who watch tv you have seen the commercials for JG Wentworth and getting ‘cash now.’ The commercial says something like – ‘if you are getting a settlement but you need cash now.’ He then follows up with the catchy little phrase ‘its your money, use it when you need it.’ If that commercial has ever peeked your interest it is because you either have a structured settlement you want to sell or you have thought about buying one from somebody. In this article I will explain the best way to do each one of those things.
First lets examine what it takes to get a structured settlement so you can make sure selling it is really what you want to do. A settlement is made when you win a lawsuit of some kind where cash compensation is awarded by the court. Rather than receiving all the money upfront you chose to receive payments over time. This is also the case if someone has left you money and they want to make sure you spend it wisely.
If you are in the market to sell your cash settlement keep a few things in mind. You can arrange to sell a portion of the settlement and keep the rest. Say you are receiving the settlement over 30 years, you could potentially sell years 10 through 20. Or you can also sell the whole thing, but in either case you receive a lump sum payment in exchange for your future pay outs.
In order for this to be a good deal for anyone who would want to buy your settlement you need to know they will charge you a fee in addition to giving you less money in the upfront payment than you would have received over time.
If you are looking to buy a settlement than you are looking for a way to invest your money safely. Settlements can be a great option because they are guaranteed payments not just based on the performance of a company like most stocks. What you need to know is that the only way a settlement can default is if the company funding the settlement goes bankrupt, so make sure to do a proper financial evaluation. Also, make sure the deal isn’t too good to be true. If someone tells you that you can buy a 4 million dollar settlement for 2 million now, you may be looking at a fraud attempt.
