A structured settlement is a settled suit or other monetary obligation with periodic payments. Why is it a hidden investment? Because the recipient often wants their money upfront. You might have seen those late-nite ads asking if you have a fixed payment from the lottery, trust, annuity, or lawsuit. Those firms are buying up the settlement for a very high rate of return. Its great, because usually the payer is a corporation or fund the payments are assured, so the risk is quite low. The recipient is happy who wouldnt prefer a million upfront to $5000 a month for 20 years?
One of the awesome things about one is they can be set up tax-free! Thats actually one of the ideas from the Periodic Payment Settlement Tax Act of 1982 it gives victims the collectors on tort lawsuits financial security. I imagine its to protect those who have been injured. There are certain criteria for the tax-free status that dont apply to all structured settlements. Its best if its a workers compensation case.
Which brings up a great idea for an alternative investment. If you have a structured settlement, and want the money upfront, you can look for a broker. There are some reputable firms online.
began in Canada as part of tort law, then really caught on in the US. They are very useful for insurance companies with large claims. It helps them with cash flow. The recipients get great tax breaks, too as part of the legal code now. Most pay no taxes on the periodic payments.
There are a lot of ways to invest or to structure a payout. You can buy a part of the payments usually the near term. You could bu two years worth of $1200/month payouts for $20,000. Thats more than 35% return guaranteed!
Theres various ways to go about it, but the easiest is to place an ad in the local paper something like Do you have a periodic payment, but want the money upfront? Call .
Most Structured settlements are done as annuities. Actually, an annuity is a fixed schedule of payments over time, so technically a structured settlement is the agreement for an annuity. In other words, the settlement is the legal obligation and the annuity is the vehicle to satisfy it. Usually, the defendant owns the annuity (and can get interest on the investments) and pays it out at a preset schedule to the claimant. This creates an offsetting asset and liability on their books so their balance sheet matches up.
Anyway, thats the simple answer. If you have or know someone with a structured settlement, consider getting the money upfront. In these times, with a precarious US dollar (see the rest of this blog or my book Gold Wars), having an annuity that pays a regular stream of dollars may be a seriously losing proposition. Getting the money upfront might be the best alternative investment you could ever make.
A structured settlement is a settled suit or other for an alternative investment. If you have a structured blog or my book Gold Wars),
Investing - Gold Wars
Structured Settlement hidden investment opportunity; Forex Trading Introduction; Gold Wars Synopsis; Gold Wars, Kelly Mitchell. Log in; Entries RSS
Structured Settlement hidden investment opportunity ...
Why You Should Avoid Structured Settlement Investments. Is Structured Settlement Annuity Investing A Good Deal? Yes, but
Is Structured Settlement Annuity Investing A Good Deal ...
But the reality is that with structured settlement annuity investing, is. A structured settlement arises her bank we then gold 20 Wentworth
Structured Settlements, Finance, Loans, Investing & Stocks
Let us help you finds structured settlements; Investing | Structured Settlements. All costs associating with a structured settlement are paid by the defendant.
Investing Your Structured Settlement | Money Soldiers
hands on approach to compounding the value of your return, you may have entertained the notion of investing your structured settlement. (gold, silver
4 Investments to Avoid | Sell Structured Settlement
gold, and currency. While investing in commodities isnt necessarily So you have decided to sell structured settlement payments and are about to call a
Is Selling A Structured Settlement A Good Investment?
Is Selling A Structured Settlement A Good Investment?
Structured Settlement - Finance
A Structured Settlement describes an agreement and arrangement in terms where of one party Secret Wars #5; a customized investing option for HNI individuals;
Structured Settlements | Self-Directed IRA by CamaPlan
Structured Settlements Checklist; A private placement is an equity investment in a business venture whose shares Please obtain the Structured Settlement
