For most people when they buy a house it is considered their
life's largest deal. In some cases of structured settlements the
compensation and financial considerations for a persons life
duration and the total present value of the settlement can reach
few millions of dollars. Therefore it is strongly advised to use
professional services like annuity consultant and a lawyer
specialized in this field in order for you to avoid painful
costly mistakes. Here are some tips:
- Think twice before you make a decision. Do you really need
that money or you want to feel rich, secure, powerful etc'
- Take only part of the money not all of it, in case of an
injury claim the Court needs to approve your request, the judge
will want to know what do you need the money for.
- Some Funds will try to convince you that due to Inflation and
rising cost of living your annuity payments have less and less
buying power over time. Remember that if the Structured
settlement was done properly it has a cost-of-living adjustment
(COLA) feature build into it in order to offset the effects of
inflation over time. So the funds claim on this issue is only
partially true as the cost of living index is an artificial and
biased measure of the actual inflation over time. Still even 70%
protection is reasonable.
- When you get a large sum of money take into account that each
bank is F.D.I.C. insured for up to $ 100,000 only! That means
that if your sum of money is bigger than that you will need to
open additional Account/s in a different bank/s in order to be
covered.
In addition take into account that as long as you deposit your
money in C.D's (e.g. Certificate of Deposit) you are covered,
but if you invest your money In fixed income, stocks, bonds, and
mutual funds. These securities are NOT F.D.I.C. insured!
- In case you transform Lottery winnings payments or a large sum
of money from structured settlement, keep it as discrete as you
can, It is not recommended to go and buy a Rolls-Roys or any
other flashy car, that will bring the criminals and the charity
people to chase you. That might even cause your children start
to ask for money. Try to keep it a secret.
- It is a good Idea to get more than one or two offers from
various private funds before making a decision, remember you are
a very lucrative customer, the funds should fight over you!
Don't be timid to negotiate and manipulate them to maximize your
money.
About the author:
Amit Laufer is a writer and internet marketer. Mba & Bsc
Computer and Inforamtion systems.
Owner Editor of:
St
ructured Settlements
