Did you know that the largest ever lottery win in US history was a little over $1.5 billion?
While this might surprise you, it may also surprise you to learn that not every winner accepts their prize in one amount.
More and more people are choosing “structured settlements”. This means that their due amount of money is provided according to an agreed structure of installments over a period of time. Some even choose to receive installments for the rest of their lives.
You may not have heard of structured settlements. What are the advantages? If you are due to receive a large amount of money from the lottery or even a court settlement, why should you consider structured settlements?
Check out our guide to the benefits of accepting large amounts in installments.
You are Looking for Long Term Financial Stability
The thought of a large financial amount dropping into your bank account might sound fantastic. It may also require you to exercise a responsible attitude.
Consider the case of a person who is awarded a large amount of money as a result of a compensation claim.
True, during the immediate time after they have received the money, they will be able to afford the best medical care. However, they may also suddenly able to afford to make purchases they could not before. They may also be flooded with friends who want to help them make them.
Avoiding quick financial decisions regarding spending is not easy. Taking the option of a structured settlement ensures financial discipline. While the person will benefit from the award, they will also maintain their long term financial well-being.
You are Looking for Tax Benefits
Some types of compensation can be taxable, for examples emotional damage claims.
If the amount awarded is taxable, taking a structured settlement may allow the receiver to stay in a lower tax bracket. This means that over time they will receive more of their full amount.
You Want to Avoid Paying for Financial Advice
When a person is suddenly handed a large sum of money, they often need to get help in deciding what to do with it. This may mean that they receive informal advice from a family member. However, more often than not they will turn to expensive financial advice centers.
Avoid this by taking structured settlements. You will benefit from receiving frequent, more manageable, large amounts of money.
The Best Advice on Structured Settlements and Much More
Receiving a large amount of money can be more difficult than it sounds. However, with good planning, such as accepting a structured settlement, you can ensure financial security for years to come.
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