Structured Settlements: To Sell or Not to Sell

January 22nd, 2014 by The JetSetter Team | 2 Comments »

JS0107We’ve seen the ads on television—fresh faced lawyers offering to buy your structured settlement for cash, today! These ads appeal to the person who needs cash now, the person who desires a lump of green paper in their pocket this very instant. But is it a good idea?

The advertisements make the prospect of selling your structured settlement undoubtedly scammy, which may send up a red flag and prevent you from taking advantage of such offers. Even if you could use the cash to travel, put toward investments, or otherwise pad your bank account, you may be skeptical.

Typically, structured settlements themselves aren’t scams, but agreements between two or more individuals or groups in which the paying party agrees to future payments to the other party. The advantage of a structured settlement is the distribution of payments into the future, but this does not satisfy the immediate need for cash, which is why some might choose to sell.

But if you’re interested in selling your structured settlement to make money now, make sure that you’re protecting your money. First, make sure that you’re working with a dependable company with a good reputation. Look for transparency of process, and be sure to compare their offer with those of other companies. Like anything, Jason Hartman recommends approaching it with an educated mind.
Read reviews, especially if the company you’re working with lacks an actual office and maintains a business only online.

It’s generally best to work with a company, as they are easier to evaluate than private investors offering cash. Still, don’t let your buyer (be they individual or company) skip or skimp on the legalities of selling your structured settlement.

Remember that involving a third party in your structured settlement will ensure that if you lose money—and you can, it’s probably best to accept monthly payments. Each company that purchases structured settlements is able to set their own prices, which means you’ll likely see a wide variety. Reputable companies normally charge the going rate, which means they’ll be among the comparable group.

So, while you may find a company willing to buy your structured settlement, its best left as a last resort. Enjoy the pleasure of delayed gratification (and reliable monthly income) by sticking with the original payment plan. You might also set aside that money for investment purposes, which will be a safer (and more fun!) way to build your personal wealth.
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