Using your Structured Settlement as an Investment

Investments have never seen more activity than in the past few years.  Although investing has been a part of history in one form or another, many people are trying to recover loss associated with the latest financial crises while others are simply eager to continue with existing success.  With so many investment opportunities, finding a niche for making money is relatively easy.  For instance, if you had worked a deal outside of the court system for an injury that resulted from a person or company being negligent you would have the ability to use your structured settlement as

Investments have never seen more activity than in the past few years.  Although investing has been a part of history in one form or another, many people are trying to recover loss associated with the latest financial crises while others are simply eager to continue with existing success.  With so many investment opportunities, finding a niche for making money is relatively easy.  For instance, if you had worked a deal outside of the court system for an injury that resulted from a person or company being negligent you would have the ability to use your structured settlement as an investment.

The reason you can look at this type of settlement as an investment is that the money is guaranteed, which opens up more options.  After being injured, a hired attorney would have helped you decide to pursue a case in court or to confront the responsible party about a settlement.  Because personal injury cases typically take a year or more to settle within the court system, it is common for people to work out a settlement outside the courts.  By receiving the money faster makes it possible to start using your structured settlement as an investment rather than be waiting on a decision on a lawsuit.

How to Get the Most out of your Structured Settlement

Keep in mind that as of January 2002, structured settlements are no longer taxed.  In addition, while you would not be able to earn interest on the amount of your settlement, you could on any money invested.  In other words, the money received would first be used to pay medical bills, attorney fees, and to cover the cost of living but with remaining money you would have the opportunity to invest.  As far as the type of investment, multiple opportunities exist although municipal bonds tend to be a popular choice.

Using a structured settlement as an investment is actually not much different from other investment options.  However, because you have no control over the annuity, to get involved with investments you would more than likely need to get approval from the court prior to doing anything.  In addition, one of the standard rules for using a settlement of this type as an investment is that you would need to be in a position of currently receiving payments.  In other words, getting involved with investments has to happen after the settlement agreement has been finalized and payments are being paid.

One important note is that even if you understand investments, for a structured settlement it would be worth the time and small amount of money to talk to a professional consultant.  Since there are numerous rules that would apply to this situation, the last thing you want is to overlook something important that would have devastating consequences.  Therefore, look for a professional who is a Certified Structured Settlement Consultant.  That way, any investment option being considered would be made from a position of knowledge rather than guesswork.