What do Structured Settlement Payments and Lottery Winnings Have in Common?
The terms mentioned above may sound quite different but don't let it fool you. Structured settlements and lottery winnings have many factors in common. As we know, structured settlements refer to monetary compensations through a constant allowance system, in other words payments are received periodically.
Likewise, lottery winnings are delivered to a recipient using a system very similar to a structured settlement scheme. While there are major disadvantages a periodic allowance system has (such as interest loss, opportunity cost, etc.) payments structured this way can protect innocent or naive people. Just imagine a young adult who won the lottery and now has a huge amount of money in his bank account. The probabilities this person has to fall victim to fraud or to spend money incorrectly are very high.
Now assuming an older, experienced and mature person were to handle such amount of money then it would be OK to turn either structure settlement or lottery winnings into investments which will yield high returns. So we can infer that both payment systems can be cashed or turned into lump sums which is another characteristic they share in common.
For financially mature people , structured settlement represent limitations. Common financial ideas tell us that counting with such a big sum of money you can definitely jump start your new business or investment portfolio. Not investing funds drawn from structured settlements and lottery winnings often mean financial loss, remember that you could have gain a lot more from the money by just investing in stocks, buying bonds or opening a good mutual fund. Or more over, paying off your mortgage loan to save up long term interest charges its an excellent idea.
Structured settlement and lottery winning payments need to be carefully analyzed in order to get the most out of these assets, a wise decision would be to do a proper research taking in consideration tax laws in the state where the transaction will take place and always apply security measures to ensure the safety of your funds and yourself.
The key to making the best decision on which company to do business with, is to remember the fact that, you are the owner of such negotiable item so you always have the upper hand in this situation. You have the best and most liquid assets in the world, cash, so look for the institution who is willing to pay you the most, for it.
Likewise, lottery winnings are delivered to a recipient using a system very similar to a structured settlement scheme. While there are major disadvantages a periodic allowance system has (such as interest loss, opportunity cost, etc.) payments structured this way can protect innocent or naive people. Just imagine a young adult who won the lottery and now has a huge amount of money in his bank account. The probabilities this person has to fall victim to fraud or to spend money incorrectly are very high.
Now assuming an older, experienced and mature person were to handle such amount of money then it would be OK to turn either structure settlement or lottery winnings into investments which will yield high returns. So we can infer that both payment systems can be cashed or turned into lump sums which is another characteristic they share in common.
For financially mature people , structured settlement represent limitations. Common financial ideas tell us that counting with such a big sum of money you can definitely jump start your new business or investment portfolio. Not investing funds drawn from structured settlements and lottery winnings often mean financial loss, remember that you could have gain a lot more from the money by just investing in stocks, buying bonds or opening a good mutual fund. Or more over, paying off your mortgage loan to save up long term interest charges its an excellent idea.
Structured settlement and lottery winning payments need to be carefully analyzed in order to get the most out of these assets, a wise decision would be to do a proper research taking in consideration tax laws in the state where the transaction will take place and always apply security measures to ensure the safety of your funds and yourself.
The key to making the best decision on which company to do business with, is to remember the fact that, you are the owner of such negotiable item so you always have the upper hand in this situation. You have the best and most liquid assets in the world, cash, so look for the institution who is willing to pay you the most, for it.
