If 2020 has proven anything, it’s that predicting what life will bring our way is impossible. Uncertainty is the new normal. That’s unsettling in many ways, including financially.
Since February, the stock market has been taking a tumble. For the wide variety of people who have money tied up in stock or other financial products linked to market rates, the fallout presents a problem. But if you have money in a fixed structured settlement, you don’t need to worry.
At Quest Settlements, we’re proud to offer structured settlement solutions to help people weather challenging times just like the one we’re facing right now.
The Problem with Lump Sum Settlements
Choosing to get your settlement as a lump sum might seem like an easy option. With this one-and-done approach, you get to pocket all of your money right away.
But that can pose a variety of problems. For starters, many people who choose lump sum payments then invest the money. When market troubles occur, their investment gets threatened.
Even if you don’t choose to invest, having all of your money on hand has three detriments. First, lump sum payments come with expensive tax ramifications. Secondly, they often lead to people in your life coming to you for help when they experience financial struggles because they know you have a large sum of available money. Finally, your lump sum payment will most likely disqualify you from needs-based government benefits.
Fortunately, there’s another way. With a structured settlement, you don’t have to worry about any of these obstacles.
How Structured Settlements Provide Certainty in Uncertain Times
At Quest Settlements, we can help you establish a settlement with guaranteed returns. With these fixed settlements, you don’t have to worry that a market crash will impact the principal you get from your annuity. Instead, you get a steady, reliable source of income to help you weather even the most challenging financial seasons.
Even better, you can take advantage of tax perks by choosing a structured settlement. If your settlement is from a physical injury or wrongful death case, your structured settlement payments aren’t subject to income tax. And if your settlement is from a non-physical injury case, you can still defer income tax on your payments.
Additionally, if you have a disability, our team at Quest Settlements can help you establish a special needs trust. With this trust in place, you can still reap the benefits of your settlement without losing access to needs-based government programs. If you rely on Medicaid or supplemental security income (SSI), for example, this option could be right for you.
All told, structured settlements provide a safe harbor in which you can weather a volatile market. 2020 has continually underscored the importance of having a reliable source of income that’s independent of market fluctuations.
If you’re interested in learning more about how a structured settlement works and what it can do for you, our team of experts is available to help. Don’t hesitate to call or email our offices in Westlake Village or San Diego to set up a time to talk with us about your options. We can help you make the most of your settlement, using it to provide financial stability for years to come.