News and Tips on structured settlement transfers.


When NOT to Sell Your Structured Settlement

Turning a future payment stream into a neat sum of money now may seem enticing, but it’s a big decision.  Because you will undoubtedly get less for selling your settlement than you would have received over time, many of the blog posts here on QMAP and articles all over the Web on structured settlements encourage prospective sellers to get financial and legal advice before doing so.  In fact, many states require it.  

But you might save yourself the trouble of consulting with professionals if any of the following conditions apply to you.  If they do, you probably shouldn’t sell your settlement.

You don’t need the money.  You don’t need, truly need the money for something important, such as medical expenses, staving off foreclosure, or college tuition.  Even if there is a true need for the money, is there someplace else you could get it?

The money won’t completely solve the emergency.  If you’re looking to pay off expenses but what you’ll get for selling your settlement won’t take care of what you owe, selling may not be a good idea.  Structured settlements are designed to help you support yourself and cover your medical expenses over time, especially if you can’t work any longer.  Once those payments are sold, the money is gone, and your debts remain, what will you do?

You need the money in less than 45 days.  Even the fastest structured settlement sale will take 45-60 days.  If you don’t have, or barely have, that much time, you may be cutting it too close.

You’re a spendthrift.  Be honest with yourself.  Whenever you get any money, does it immediately start burning a hole in your pocket?  If you’re unsure how well you’ll resist the temptation to spend, leave that settlement alone.  Again – a structured settlement is intended to take care of you.  If you sell it, how will you manage?

Your spouse, kids, etc., want to spend it.  Even if you’re a fantastic money manager, if you’ve got someone in the family who always seems to need money, reconsider the sale.  Once they know you have cash on hand, they’re sure to want some, they’re sure to have a persuasive reason, and they’re sure to promise to pay you back.  Someday.

You’re planning to use it for a risky investment.  Just about everybody has daydreamed of stumbling onto that undiscovered opportunity and striking it rich.  It’s nice to think that you could convert your structured settlement into a tidy seed that can be planted in the stock market, a great new business idea, or some other no-fail investment.  Except that investments and new businesses often do fail.  And, even if you’re lucky, will the return on that investment exceed what you’re paying (in the form of the discount rate) on the sale of your settlement?  If not, better to keep what you have.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.

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