Structured Settlements: Should You Sell?

Should you sell your structured settlement? The answer to this questions is complicated at best because there are so many questions that must be answered before a decision can be made. There are various reasons people choose to sell their structured settlements, but do they always make the correct decision?

The decision to sell should not be made under pressure which often times is the case due to a unforeseen financial emergency or hardship. Making a choice under these circumstances many times leads to further financial problems later. A structured settlement is guaranteed for the life of the contract with payments coming in each month until the contract is fulfilled and is worth far more over the long term; selling early can in some cases cut the value of the settlement in half.

In fact, most of the time it is not a wise decision to sell a structured settlement unless there is no other choice such as emergency cases and even then other avenues should be exhausted before selling.

One valid reason to sell is for other investment purposes. People that have the experience and discipline to invest wisely are often candidates for selling a structured settlement. They realize that they may be able to receive a greater Return On Investment(ROI) by liquidating their settlement and placing the funds in other investment ventures as opposed to letting the money sit for years. However, it should be noted that there is substantial risk involved with any investment and caution should be exercised. A financial planner should be utilized in this case.

Whether you choose to sell your structured settlement or not is a decision only you can make. Expert advice from a financial planner or someone within the financial industry should be sought out before the final decision is made. It is far better to pay a one time consulting fee if services cannot be located for free, rather than living with regret over your decision to sell your structured settlement.

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