Why Not to Sell Structured Settlement for a Lump Sum
There are a many good reasons to sell a structured settlement for a lump sum (or at least to convert some of it to cash now). With that said, there are a lot of bad reasons to sell a structured settlement. As we say over and over, every circumstance is different and every person has different reasons to seek a lump sum. Obviously, if you are taking the take to read this article (and the time to find it through a search on the internet), then you are at least considering your options.
Luxury items are generally not the type of thing one should sell a structured settlement to obtain. While who would not want a nice boat to get on the water on a warm day- selling a structured settlement for this type of acquisition would ordinarily be considered a bad idea. Notably, when you sell a structured settlement that is from a personal injury settlement, the law requires an independent judicial officer to find the decision to do so is in your best interest. It is, of course, true that no 3rd party could truly understand your position or the full scope of why you might want/need/prefer to get a lump sum, the reality is that you will in most cases have to convince this third party that it is indeed in your best interest.
Selling a structured settlement for a speculative investment might not be in your best interest either. The very purpose of most structured annuity payments is to provide you with a stable source of income and therefore if you are sell or assign the payments you will lose that benefit. Consequently, as with any large financial decision, you should think long and hard. Of course, its your money and making a decision how and when to spend is something you ultimately do control and are responsible for you.