Funding Your Endeavors With Your Settlement
When looking to start a business, raising capital to get started is often one of the more challenging aspects to a startup.
As many insurance annuity owners can attest to, selling their structured settlement provides the funding to get started and made it possible to start their business.
While each situation is unique, it is the right option for some. If you are the recipient of a structured settlement and have since returned to the workforce after a personal injury or similar, then you might be find accepting a settlement buyout works with your own financial plans and doesn't interfere with matters compared to someone that doesn't work and relies on regular scheduled payments.
It should be noted that selling structured settlement payments is not for everyone. While they do provide access to cash, doing so should only be considered when it would have a dire affect on your income and financial plans to support yourself.
Many will take a buyout for their settlement every day, for a wide variety of reasons like getting out of debt, paying for a child's tuition, home or car repairs, along with purchasing a new home or car, and of course there is the possibility of starting a new business as well.
It's become more common in recent years for seniors to sell their annuities in order to finance starting a small business. In fact, over 7 million Americans over 50 are self-employed according to a recent study. A number of sources suggest the startup cost of a new business is approximately $30,000 on average.
Using a settlement to fund of even cover costs for a business during a slow period can sometimes determine the fate of the enterprise. You can use it to avoid getting a loan, or paying one off to avoid interest, protecting your investment, expanding your business, and much more. If there is one thing most businesses can always use it's more capital to work with.
If you're not relying on the steady stream of payments that a structured settlement offer, then selling your annuity can make sense so that you might have the money work for you. Due to the time value of money, your settlement actually depreciates in value over time and is possibly in your best interest to put the funds to better use.