When all is said and done and your structured settlement payout is in the bank and secure, it’s time to sit down and make decisions on how exactly to spend it. This is probably one of the more important decisions you will make. You just sold a guaranteed annuity payment that would have ensured a secure source of income for decades – you don’t want to use all the money that you earned from that to go to waste.
For those who are still grappling with the idea, here are a few tips on how you should spend the money:
The first thing you should spend it on is the main reason for why you sold your structured settlement for. People sell their structured settlements for a variety of reasons, however, the main one is usually in the form of a great need. For example, you need to pay for the house or for a medical treatment. This means that you should put down the money on this before you even start buying other things.
Now that you’ve managed to pay for the major emergency or expense, the next step is to take a look at the money and see what you should spend it on. The first one on your list should be investments.
You just sold off your structured settlement, which is a dependable source of income. You need to recoup that loss. This means looking towards other money-making products. The basic options involves stocks, bonds, and mutual funds. You should consult with a financial consultant to see what choices are available for you.
Buying a business or starting one is a good way to spend your money. Franchises are available so that you don’t need to do any heavy lifting. It will take some investment but a good franchise can last you decades and give you as much or even more than your settlement could have given you.
Starting a business is a bit riskier but it can be a lot cheaper. However, a small business won’t rake in the dough as a franchise. Profit is still profit though so you will want that money.
You should also treat yourself to some things. Maybe a small vacation or something that will help put a smile on your face. Small gifts to yourself after a windfall are a good thing. Don’t go overboard though. You want to be able to keep some of that money safe.
Finally, you should also save a bit of that money. As a good rule-of-thumb, you can divide the money you have left after your major payment into three parts: the investments, the treats, and the savings. The largest part should be the savings to ensure that you still have money left for a rainy day.
Your structured settlement payout is a big windfall and you should spend it properly. Hopefully, these tips at structuredsettlement.us.com should be able to help you make a decision on that. You can also check out http://www.mcgeorge.edu/Documents/Publications/MLR4108_I_nsurance_Master_3-24-10.pdf.
You’ve sold your structured settlement, now what? We give you tips at structuredsettlement.us.com on how to spend your money wisely.