One of the most common questions about structured settlements is whether or not to take a lump sum payment or to take the monthly payment. There are advantages and disadvantages to both situations and there is no set answer that applies to every individual. First, it's best to have a basic understanding of annuities, structured settlements, and your payout options. Here's some more information:
What Is a Lump Sum Annuity?
A lump sum annuity is a payment of all money due to you, minus taxes, fees,manolo blahnik, and penalties. It's usually offered as an alternative to monthly payments,rolex watches, but it's not without some disadvantages. This option is usually offered for large lottery or contest winnings or with a large award in a lawsuit. Why would you choose the monthly payments, you might ask. The answer is because of the taxes and the drastic difference in the amount you receive over time.
However,prada shoes, the benefits can sometimes outweigh the disadvantages. This is especially true if you want to invest in a business or buy real estate, but don't have the available cash. A lump sum can give you the immediate cash you need, but, as a rule, you're better off taking the monthly payments.
Structured Settlement Annuity
These types of annuities are usually for awards from lawsuits or lottery winnings. It will pay you the same amount each month. In most cases, the taxes are already paid out of the award, so you don't have worry about paying that each year. You can also petition the courts to increase, decrease, or give you all of your cash at any time; however,prada skor, you will be at the mercy of the judge. In some cases, a structured settlement payment arrangement is part of the settlement on the case and you may not have a chance to change it once you sign the paperwork.
One versus the Other
Whether one is better than the other is really dependent on your needs, plans for the future, and your anticipated retirement. You should most definitely contact a tax consultant, so you understand what your tax liability will be. They can also advise you on what can be done or moved around to make sure you keep the most money. For many people, an annuity represents a second chance at the good life - it's up to you to make sure your money works for you - not against you!
What Is a Lump Sum Annuity?
A lump sum annuity is a payment of all money due to you, minus taxes, fees,manolo blahnik, and penalties. It's usually offered as an alternative to monthly payments,rolex watches, but it's not without some disadvantages. This option is usually offered for large lottery or contest winnings or with a large award in a lawsuit. Why would you choose the monthly payments, you might ask. The answer is because of the taxes and the drastic difference in the amount you receive over time.
However,prada shoes, the benefits can sometimes outweigh the disadvantages. This is especially true if you want to invest in a business or buy real estate, but don't have the available cash. A lump sum can give you the immediate cash you need, but, as a rule, you're better off taking the monthly payments.
Structured Settlement Annuity
These types of annuities are usually for awards from lawsuits or lottery winnings. It will pay you the same amount each month. In most cases, the taxes are already paid out of the award, so you don't have worry about paying that each year. You can also petition the courts to increase, decrease, or give you all of your cash at any time; however,prada skor, you will be at the mercy of the judge. In some cases, a structured settlement payment arrangement is part of the settlement on the case and you may not have a chance to change it once you sign the paperwork.
One versus the Other
Whether one is better than the other is really dependent on your needs, plans for the future, and your anticipated retirement. You should most definitely contact a tax consultant, so you understand what your tax liability will be. They can also advise you on what can be done or moved around to make sure you keep the most money. For many people, an annuity represents a second chance at the good life - it's up to you to make sure your money works for you - not against you!
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