Even if money is not your main focus or goal, it is pretty safe to say that everyone desires to live a stable and secure life, not wasting time being preoccupied or stressed out about where your money is coming from or how you are going to pay for necessities. And everyone has some sort of dream or another. Some actively pursue it, determined to reach it as soon as possible, others cling steadfastly to “someday,” slowly but surely getting closer to their goal. Still others may not even be aware of what the depths of their hearts desire. But everyone deserves a chance. And if you are faced with the choice between cashing in for a lump sum and annuity, you are also faced with opportunities to build a life closer to your dream than ever.
The cases for lump sum and annuity
Hanging on to your structured settlement annuity can have its benefits. It forces you to budget and not spend a large amount in any one place and discourages excessive thoughtless spending. And yet if you want to get cash for your settlement and opt for a lump sum instead, if you are smart about where that money goes when you do receive it, you could really set yourself up for success for the rest of your life. Of those asked if they were satisfied with their choice to sell their structured settlements, an overwhelming 92% reported that they absolutely were. And that statistic is not surprising when you consider the state of financial affairs for many individuals in this country. While the average household income over the last 12 years has grown by a fairly decent 26%, that percentage doesn’t quite stack up to to the 29% that the cost of living has increased over the same amount of time. And about 20% of Americans from the ages of 18 to 24 would consider themselves in a state of debt hardship. Cashing in for a lump sum often helps those struggling financially to catch back up to getting on track with their goals.
How a lump sum can change your life for the better
Weigh your choices carefully when deciding between a lump sum and annuity.
There are any number of options to spend your money on once you cash in your annuity. But with careful consideration you will be able to construct a better situation for yourself in the long run. Of course it depends on what you value and where your priorities lie. If you are looking for an education in order to break into a field that may be difficult to access without the proper schooling, that chunk of money could take care of undergrad tuition or graduate school. The cost of higher education is currently pretty steep, and that is not even considering housing and required textbooks. The healthcare system is equally complicated and costly, and too many people are set back from their dreams or even from living a comfortable life of necessities because of outrageous medical bills. Getting out of that debt would take away an immense amount of financial worry. Another option for investing in your future could be starting a business. Perhaps you’ve had all of the expertise and passion necessary but have only lacked that hefty sum that would get everything up and running. Cashing in for your lump sum could take are of that.
Any one of these options could put you on your desired path. Or you could finally fulfill your dream of traveling somewhere new to appease the wanderlust within that has been starving. It boils down to this: when deciding between a lump sum and annuity, it is important to consider every aspect of your spending, budget, and how each would help you reach the end goal of your dream.
