March 23, 2008
Settlement Sale Tips
There are things to know about structured settlement sales. First of all, the general rule is that the smaller the payments, or the farther away the payments are, the more expensive it is to cash them out. If possible, never sell your entire settlement, cause the monthly payments you will be getting are a stable source of income and are tax free. And you never really know what the future holds so having money coming every month could be a lifesaver. Estimating the present value of your future payments is complicated math. It takes into consideration time, uses a rate set by the IRS, and then factors in other costs before calculating today’s value of the payments you are looking to sell.