There are many reasons to cash-in on a structured settlement, such as debt, medical emergency, business venture, or home repairs. However, today we would like to discuss the value of time vs. money. To demonstrate, imagine that we were to offer you the sum of $10,000, tax-free. We said that you could have it today, with no questions asked. Would you take it?
However, just as you were about to agree with our proposal, we said that we had an even better deal for you. We told you that we would add $500 onto that previous $10,000, and all you had to do was wait for an additional three years.
This is roughly the concept behind structured settlement payments, because the payments are set up to pay you more over the long haul. However, the only drawback it that you will have to wait to receive the full amount. Here is the question we bring to the table. Is it really worth it to take the largest sum of money, even if it is paid over a longer period? Consider this for a moment. Let's say you took the penalty, and decided to take the money now. You have just lost $500, correct? Well, no, in fact, we would like to argue that you have actually earned $1,076.25 more than if you had waited those three years.