There are many people who are wondering which is better – receiving cash now or waiting until the next pay day to receive some extra cash. If you have received an offer of cash today then you will know that this is definitely not an option for you. However, if you have been looking forward to getting some extra cash then you may want to take a look at these two options and see what the advantages are.
For starters, lump sum versus payments are by far a much better option than monthly payments. In fact, this will always be a better option. There is no point in waiting until the next month to receive your money when you can immediately receive it today. This will also help you in several other ways. First of all, you will not need to worry about tax consequences.
Another advantage is that this can help you in several other ways. For example, if you plan on cashing in on your pension in the future then this is one of the best options for you. One of the reasons why a lot of people end up with a pension when they retire is simply because they did not invest in a retirement fund when they were working. Once they retire they have no income from their pension. With a lump sum payment this is not a problem since you can immediately receive your income and you can easily cash in on your pension.
Yet another advantage is that this will ensure that you have some extra money each month. Once your lump sum has come in then you will have some freedom to spend it in any way that you like. As long as you do not use it for anything risky then there is nothing wrong with this type of arrangement. A few years ago this type of arrangement was not very popular because people could not qualify for a lump sum in their pension. Today, however, many more people are able to receive their pensions in this way.
The final major reason why some people prefer lump sum versus payments is because they cannot legally sell any part of their property to meet the terms of the Bill 22 consultation agreement. This clause states that some percentage of the sale proceeds should go to the government and should be used for aboriginal programs and projects. Some of the people who could benefit from this clause include First Nations groups, Inuit and Metis groups and small private firms.
These three reasons make the sale of a policy much more attractive than it may seem at first glance. Of course, the main reason why you would want to sell a policy is so that you can avoid paying tax on it for the rest of your life. You could also benefit from a lump sum versus payments arrangement if you can meet all of your tax obligations while getting a monthly income. On the other hand, you may have a legitimate financial need and the tax benefits of Bill 22 may not be enough of a reason for you to forego receiving regular money. As long as you can show that the money is needed in order to meet your particular needs, there is no reason not to sell your policy to someone interested in meeting your needs.