# Structured Settlement Calculator

The internet-based structured settlement calculator offers an accurate estimate of exactly how much a person”s structured settlement amount is currently worth. Unlike competing companies, this free method is completely accurate and trustworthy. In addition, the online calculator is uncomplicated to utilize, which makes calculating a potential structured settlement payout so much easier than it once was. One can also use one of these calculators to plan out financial aspects of one”s retirement, to assist in finding the right investment opportunities as well as to determine the most cost effective distribution plan.

One must understand that the purpose of utilizing a structured settlement calculator is to help provide individuals with the necessary information necessary to make well informed choices regarding their future needs. It is not intended to replace the expertise of a qualified financial advisor. However, using the online calculator and basic mathematics skills, a person can easily come up with an acceptable monthly income and total expenses. Once this is established, a person will then have an idea of how much money they could realistically expect to receive in lump sum payments. This lump sum should be invested to ensure a secure future for the recipient. By making sound financial decisions, one can ensure a long and productive life after receiving their structured settlement payments.

Some of the basic mathematical skills one needs to utilize their Structured Settlement Calculator include: converting monthly bills/calculations into dollars, adding up all interest paid on the structured settlement payments and determining what a person would owe in terms of monthly payments after a specific number of years. A few websites also offer annuity calculators that are relatively simple to use. These basic calculators are great for anyone who is relatively unfamiliar with annuities or the way in which they are paid. However, these online calculators are often inaccurate, especially when dealing with amounts that are significantly greater than a few hundred dollars. Due to this inaccuracy, it is important to take the time to locate a company that is reputable and well-known for supplying accurate information regarding annuity payments.

Once one has found a reputable and well-known provider, the next step is to utilize their Structured Settlement Calculator to determine the exact value of their structured settlement. It is important to enter the number in the appropriate fields, as large errors in any one field can drastically change the results of other calculations. Once this is complete, the website will give an approximation of the eventual payout. Depending on the individual’s age at the time of settlement, there may be more than one lump sum payment that is due. For example, if a person is 45 years old and receives five payments over five years, the payout will range between two and eight thousand dollars. However, if the person is forty years old, they may only receive six payments over seven years.

After entering all of this data, the Structured Settlement Calculator can determine the effective discount rate. This is the discount that would be applied to the total amount of payments. The calculator can also determine how much of the total payment will go to each factor. This may include things such as the remaining life expectancy of the person receiving the payout, the type of annuity they are choosing, and/or the manner in which the payments will be received. There are many factors that can be included in these life-contingent payments; therefore, it is important to ensure that all of them are appropriately entered and that they accurately represent the final payout.

After all of these things are determined, one can simply plug the information into the Structured Settlement Calculator to get an effective discount rate. A person may also want to check the accuracy of the life contingent feature. Some websites will automatically convert percentages that are input into the calculator into a different format. If this feature is not working properly, it is recommended that a person double-check to make sure that everything is correct. Many legitimate brokers will be willing to provide information and support for a Structured Settlement Calculator; therefore, it is imperative that a person do as much research as possible before selecting a specific broker.