You always hear people talking about the latest investment vehicle they use.This is talking about cold water, talking about the dinner table, phone conversation, it's everywhere talking. People are always looking for a way to invest their money that might be a bit ' different ' than what others are doing. Buying a structured settlement is one of those options.
A structured settlement is the place where a party receives a sum of money to be paid over a certain period of time. It is usually the result of an insurance agreement or a settlement of life where the insurance company is required by a judge to pay the victims an amount of money over time. The person who receives the agreement then knows that he can rely on $ x. XX per month in the next few years and.
However, people who receive structured settlements often do not want to receive money in the period of time. They want money now. And why not? Often they can make better use of money now that they could not do it for more than 30 years, or they could sometimes improve their personal finances now and forever if they had a lump sum at this time for their structured settlement payment.
The investor is coming. As an investor, another vehicle would be to buy structured payments. This is true, pay cash for structured settlement payments. For example, Joe receives a $500,000 settlement from the car accident insurance company he participated in. The company will pay the $500,000 in the next 10 years, $50,000 a year. However, Joe would be better off if he could only get $150,000 now and let someone receive payments over the next 10 years. As an investor, you could do it. Of course, in this case you must have $150,000 in cash to buy the payments, but over the next 10 years you will get a 333% return on your initial investment of $150,000. Not bad!
I'm not saying that this is an easy process to buy structured payments from someone. The process involves lawyers, insurance companies and judges, three things people tend to hate. However, there are companies that can help you. They will help you find all the resources you need to make an investment. Good luck.
Source by John Jonas https://ezinearticles.com/?Structured-Settlement-as-an-Investment-Vehicle&id=13800
