Many individuals who know in the rear of their minds that they got the chance to transform a monthly payment or annuity long term payments into a large lump sum and by that to relieve some momentarily financial problems, or need to purchase a brand new car or a home or help their kids and so forth are tempted to exercise this process into action. Even though it’s a very natural feeling and sometimes even a real life need or deep inner quest for power and control, it isn’t to their best financial interest to say the least. It’s no wonder that the U.S federal laws promote long term payments in both cases as structured settlements and lottery winnings.
In several nations around the globe it’s legal to pay for lottery winning in one lump sum. Ordinary individuals who get in their possession a very large sum of cash do not really know how to manage their treasure or how to invest it wisely, they aren’t prepared for it plus they’re overwhelmed with a delusion of over large quantity of wealth, they become completely careless on how and on what they spend their money. Even when they invest their money, they go to high risk speculative investments as they try to get high returns. Instead of going for a much solid and safer, Widows & orphans type of investment portfolio.
Neither do they go for the golden middle way between of a mixed portfolio. They do not use investments advisers or financial advisors. – They listen to shrewd business individuals who talk them into investing in all sorts of commercial adventures that seems to them very profitable, but in a short while turn into total bankruptcies and the money is fully gone. All kind of addictive behaviors like gambling horse racing or going to play the roulette in the casino are now intensified with the feeling of power and wealth, it may drive the individual to bet high sums of cash as if there’s no tomorrow.
Believe it or not, but criminal elements may engage in placing pressure to extort money from the overnight rich poor guy. Charity institutions begin to call all night and day asking for contributions to a very noble causes, they send some slick reps to convince him to donate money. His own kids, sometimes his wife becomes very greedy and exerts emotional pressure to give them increasingly more money. In several cases the sudden riches literally ruined the households. It’s not recommended for a wounded or a handicapped person, to transform the entire Structured Settlement long term payments into one large lump sum or you may wind up one day without the money and facing high medical costs along with other bills you can’t afford.