If you have come into a lot of money, you have a few choices about how you want to receive your money. You may find that it’s not as easy as just getting your money. You have different payout options that you will need to choose from. This article is designed to show you what you options would be but you should always retain the help and advice from a financial adviser that has helped people in your situation before. Whether you are receiving a settlement from a lawsuit or insurance claim, an inheritance or have won the lottery, you don’t have to settle with the first payout options that you hear about. Here are examples of payout options that you should consider.
Selling an Annuity Settlement
You could get cash for structured settlement payments. If you’ve been told that your payments are going to come to you annually or be split up over a period of time, you don’t have to settle for that. There are companies that will actually buy your annuity and offer you a lump sum of cash immediately for it. This is very beneficial if you want to pay off credit cards or purchase a large item or something like this.
Paying off debt can be a hard thing because of the interest it accrues. It can sometimes feel like you aren’t paying anything because by the time the next month comes, the interest has practically returned the payment to what it was before you made any payments at all. This is why receiving a lump sum might be one of the best payout options for you. If you have a lot of debt from credit cards and loans then you are not alone. Most of America is struggling with trying to get rid of this kind of debt. However, if you receive the lump sum then you could get out from under all of them and possibly still have some money left over to do what you want with.
If you are purchasing a large item like a home or a new car or boat then you will also need the lump sum. By the time you wait for your yearly installments, the item which you had your eye on may be gone. There’s no point in having a lot of money if you can’t manage it how you want to.
Staying With the Payments
If you choose to stay with the option of receiving your payments over a course of time, this could also be beneficial. While you may not be able to pay off debt right away or purchase what you want to, or need to, you could still use this to your advantage. You may receive more money in the long run by doing this, but of course you will need to wait the full 30 years or however long the payments will go for, in order to have all of your money. If you have no plans for your new found riches then this may be a good option for you.
Receiving a lot of money in payments will help you to figure out how to deal with it. Many people have a hard time accepting the lifestyle changes that come with all of a sudden becoming rich. Allowing the money to only come a little bit at a time and to be determined by the company sending the installments will help you to continue living your life as you already are. You won’t have to worry about having too much money at one time and blowing it all on something that you will regret later.
Whichever way you decide to go should be based fully on your needs and wants and not on what anyone else is telling you to do. You should weight up the options and the pros and cons and counsel with a financial adviser to see what would be in your best interest. Only then can you make an informed decision about how these finances will benefit your life and well being. It will all depend on where you stand financially now and what your future goals. You can choose to involve others but do not feel obligated.