These settlements can be sold, after the court has given an allowance, an you as an investor can buy structured settlements. You will get it priced along the market price, i.e. if there is a recession, you will get it cheaper, which will increase your profit potential.
1. First Rule: Pick A Reputable Seller.
When you will buy structured settlements remember, that they are long term investments and require a reputable seller. It is recommended that you buy structured settlements only from a long term and big company, which is known in the industry. The right seller will guarantee, that you will get the settlements. If you think, that the court decision can handle a time of several years, whatever can happen to the small or lightly financed company.
2. Why The Settlements Sell So Well Just Now?
During the unstable economic times, like during the finance crises, the investors are seeking for security, rather than the top profits. But what is the best investment is the secure investment, which is totally tax free. The regular cash flow over a long period of time is a beautiful feature to an investment instrument.
3. To Sell A Settlement Needs A Court Decision.
Because the settlements are payments for the damage, which somebody has caused and the court has decided, that somebody has to pay, also the selling of the settlements requires court decision. So the court will think, what has changed in the financial situation of the seller.
4. The Carefree Financial Future.
When you will buy structured settlements you will get regular income during many years. These payments guarantee, that it is not necessary to plan your financial future, because once you have bought the settlements, the income will flow.
5. The Settlements Are Tax Free Income.
The payments from the structured settlements are tax free income both in the federal and the state taxes. This is the benefit, which very few investment instrument can offer and this can form the main criteria to buy structured settlements.
As you can see from this short article, the profit from the settlements come from two sources. The first one is a low buying price and another one is the fact, that the payments are tax free. As an additional benefit, the payments will come on the fixed dates, which releases you from the financial planning.
Juhani Tontti, B.Sc., Marketing. Do you think to buy structured settlements as astructured settlement investment? Read this article about the benefits. Visit: structured settlement annuity
