Wednesday, August 22, 2012

Top Line Ltd ? Structured Settlements ? One Lump Sum

In today?s economy, many people are looking for a way to make some cash quickly, either to pay off debt, make a large purchase, or even stabilize their income during bad economic times. One of the easiest ways for some to do this is through structured settlements, in which the person receiving payments instead receives one lump sum at once. This gives the recipient greater buying power and the ability to invest in order to see a return on the money quicker. Structured settlements have been around for decades, and are relatively safe investments for both the buyer and seller.

When a structured settlement is created, a company will pay a large sum to the person receiving the payments. This payout is less than what would have been paid over time, but more convenient to the person being paid. In exchange, the settlement company will begin obtaining the settlement lump sum profits payments, in which they will be paid their original investment, plus a profit.

Many people are eligible for settlements, as there are a number of reasons that people receive payments.

There are several popular structured settlement systems that are eligible for lump sum payments. One of these is made to people who have been awarded money by a court system for injuries or other lawsuit winnings. Often, court rulings with large compensation to the plaintiff will result in a structured settlement payout by the defendant. With a long court process behind them, many plaintiffs wish to receive their money at once, in an effort to get the entire process behind them.

Another form of settlement that is usually eligible for sale is an annuity payment. Many financial portfolios are loaded with annuities, which are investments set to pay out at a specific time, and on a regular basis.

These are popular lump sum profits with retirees who intend to live off their investments. However, often medical situations or other unforeseen circumstances arise, in which the retiree may need a large sum of money at once. Often, annuities are sold in exchange for a lump payment.

The obvious benefits to selling a structured settlement is the convenience of an upfront payment. There is also the possibility that an annuity payout could become worth less over time, if it is directly tied to economic conditions. However, the downside to taking a lump sum payment for structured settlements is that the seller is often given much less than he or she would have received over time, which can prove to be a bad investment decision for those who do not manage money well. It is wise to consult with a financial adviser before making a decision, and to also shop and compare structured settlement companies before selling.

lump sum profits

Source: http://www.toplineltd.net/structured-settlements-one-lump-sum/

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