Getting the Most From Your Structured Settlement
If you have a structured settlement, are you sure you’re making the most of it? With so many stories of people blowing through lottery winnings or other windfalls, you may want to make sure you don’t make the same mistakes.
One thing you can do is opt for a structured settlement. That means, instead of receiving the entire amount now, you will get a set amount over a period of time. This is a smart decision for two reasons. First and most obvious, this will prevent you from spending all the money in one shot. When you know you’re only getting a set amount this month or year, you become more conscious of what you spend on. While a windfall should be used to make your life better, you still need to be careful. Next, this is also good for tax reasons. Taking a lot of money now will put you in a high tax bracket for this year. You could potentially lose up to 30% of your money if you take it all, but spreading it out over a few years will ensure you get a lower tax rate each year.
However, you may want to cash out your structured settlement payments after a while, for whatever reason. Sometimes, you may have an emergency and need to pay off hospital bills or other emergencies. Maybe you just want to invest in your education or a business. In such cases, there are many companies and firms that can help you. When you cash out structured settlement payments, you can get the money you need now without waiting.