The Lump Sum Option and Your Structured Settlement Questions and Answers
Cashing in your structured settlement payments for lump sum cash is not a spur of the moment decision. And like any financial decision, it's important you have all the facts so you can make the decision that makes the most sense for you.
Stone Street Capital has helped thousands get lump sum cash since 1989. During the last 20 years, many questions have come up regarding the lump sum option. Below are answers to some of the most common lump sum structured settlement questions.
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The Lump Sum Option and Structured Settlement Answers
What is the Lump Sum Cash Payment Option?
A lump sum cash payment is up-front cash for the value of your future structured settlement payments. Choosing the lump sum cash option allows you to trade in your future payments for money today, giving you access to your money all at once instead of waiting 10, 15, 20 years or more.
What's so Great About Lump Sum Cash Payment?
When you choose any lump sum cash option from Stone Street Capital, you can get immediate access to money that would otherwise be out of reach. You can use a lump sum payout to meet your financial needs, including:
- Attorney fees
- Medical bills
- Credit Card or other bills
- Home or car repairs
Am I Required to Sell All of My Payments?
No, in fact most structured settlement recipients sell only a portion of their payments. This will allow you to raise money quickly, but still have the financial security of incoming payments.
Over 22 years of industry experience has allowed us to build an extensive, completely customized network of lump sum options that match your personal situation. You can convert some or all of your structured settlement depending on your specific needs.
For example, you can convert:
- The full amount of remaining payments
- Any number of remaining payments
- Any percentage of the remaining total payments
How does inflation effect my Structured Settlement?
Inflation reduces the value of your structured settlement payments. While the amount you get from each payment stays the same, over time, they buy less and less - because things cost more.
What did it cost to buy a gallon of gas 20 years ago? What about the cost of a movie ticket? Inflation causes prices to rise, which means you have to pay more for the same goods and services. If you received a check for $5,000 every year, in 10 years, that same $5,000 would buy less.
what Does the "Time Value of Money Mean"?
A dollar today is always worth more than a dollar in the future. Why? Because the dollar received today can earn interest up until the time the future dollar is received. This is especially important for structured settlement recipients because they receive their payments over time. This long term payout reduces the value of these payments.
Let's say you had $10,000 coming to you over the next 10 years. Each year you would receive $1,000. But, if you had the $10,000 today and put it into a savings account earning 3% each year, that $10,000 would be worth $13,439.16. That is how time plays a factor in value.
How Does the "Time Value of Money" Effect Selling my Structured Settlement?
Because of the Time Value of Money, fif a structured settlement recipient were to sell future payments for cash, the closer payments are worth more than the payments further out - for the same reasons listed above.
For example: You will get more money for the next 5 years of payments than you would for the last 5 years of payments. This is because you can buy more with money today than you can buy in the future.
How Big of a Lump Sum Payment Can I Receive?
There is no limit to the size of your lump sum payment. However, the amount of money you receive for your structured settlement will depend on several factors:
- The total amount of your settlement payments
- The number of payments you have remaining
- The date those payments are due to arrive
- The number of payments you wish to sell
- Interest rates and other financial considerations
The amount of money you can receive for your settlement payments varies on an individual basis. To find out exactly how much money you can receive, call us at 1-800-LUMP-SUM (800-586-7786). We can provide you with the structured settlement answers that related to getting a lump sum.
If you have any more structured settlement questions, please call us.
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