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Posted: 6/22/2017 12:10:55 PM EST
[Last Edit: 6/22/2017 12:59:34 PM EST by TXLineman]
Say you were in an accident and suffered a life altering injury due to someones negligence . After 3 years you settle out of court.
Once all medical bills & attorney fees are paid you will end up with $ 1.9 million payable in your choice of a lump sum or structured settlement. But the defense and your attorney are pushing for you to take the structured settlement paid out monthly over 20 years.

Would you take the lump sum?

Or the structured settlement?

What would be your reason?

Thanks
Link Posted: 6/22/2017 12:13:08 PM EST
Lump sum cuz reasons
Link Posted: 6/22/2017 12:14:25 PM EST
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
Link Posted: 6/22/2017 12:14:51 PM EST
Link Posted: 6/22/2017 12:14:56 PM EST
I would likely take the settlement as I run two businesses and would not quit either one. Therefore it ensures a guaranteed income in addition to my earnings. and a decent one at that at almost 95 thousand before taxes.

However were I not tied into these businesses already I might take the lump sum to invest in several other businesses. Which of course is a risk in itself.
Link Posted: 6/22/2017 12:14:59 PM EST
Math is your friend.

Need details of structured payments to compare. Reliability of payments coming in?

What would you do with the money?

Sound investment strategy for lump sum now to make it grow? Maybe take the lump.

Irresponsible and will likely blow it all on hookers and blow? Maybe take the payments.
Link Posted: 6/22/2017 12:15:41 PM EST
Originally Posted By TXLineman:
Say you were in an accident and suffered a life altering injury due to someones negligence . After 3 years you settle out of court.
Once all medical bills & attorney fees are paid you will end up with $ 1.9 million payable in your choice of a lump sum or structured settlement. But the defense and your attorney are pushing for you to take the structured settlement paid out over 20 years.

Would you take the lump sum?

Or the structured settlement?

What would be your reason?

Thanks
View Quote


Is the payout the same regardless how it's paid? I would assume so and would take the lump sum... Then work with a financial adviser to invest the money aimed towards being income generating. I also assume you would need to spend some money to remodel or buy a home suitable for disabled living.
Link Posted: 6/22/2017 12:15:56 PM EST
Lump sum and live off dividends.
Link Posted: 6/22/2017 12:16:32 PM EST
Lump sum.
Link Posted: 6/22/2017 12:16:34 PM EST
What does your accountant say?


You DO have an accountant to help manage the windfall right?
Link Posted: 6/22/2017 12:16:53 PM EST
Your body is now basically a lump, so lump sum.
Link Posted: 6/22/2017 12:17:16 PM EST
Always lump. Lots of shit can happen in 20 years and I'm responsible enough for it all at once, thank you very mucho.
Link Posted: 6/22/2017 12:17:22 PM EST
How is the settlement structured?  Is a trust fund being set up?
Link Posted: 6/22/2017 12:18:51 PM EST
Lump sum, because I would invest it.
Link Posted: 6/22/2017 12:19:47 PM EST
Take the lump sum no matter what. Drop it into a safe, very low risk, Vanguard account until you decide what to do with it and live off the dividends.
Link Posted: 6/22/2017 12:20:01 PM EST
Lump sum. Set up an annuity.
Link Posted: 6/22/2017 12:20:02 PM EST
Always take lump sum.
Link Posted: 6/22/2017 12:22:51 PM EST
OP needs to call J. G. Wentworth.
Link Posted: 6/22/2017 12:23:41 PM EST
[Last Edit: 6/22/2017 12:29:23 PM EST by tacocat]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By joshdb50:
Lump sum. Set up an annuity.
View Quote
Yeah and if you need cash now just call JG WENTWORTH 877 CASH NOW!

Beat
Link Posted: 6/22/2017 12:25:27 PM EST
[Last Edit: 6/22/2017 12:28:03 PM EST by Gator]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By fatdrunkandstupid:
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
View Quote
This would be #1 concern. If you can get lump sump, only reason I can think why not is that you would blow it all on hookers and coke in short order. If you can handle it, lump sum.

Plus, you get more for payments, or same amount? If same amount, lol.
Link Posted: 6/22/2017 12:27:06 PM EST
You know what, after the arguments on here for the lump sum I think you guys are right. Forget I said payments. I certainly don't trust others to keep making the payments to me.
Link Posted: 6/22/2017 12:27:50 PM EST
Lump sum. Set aside necessary amount to pay taxes, plus a percent or two for prompt fucking around with, the rest goes into a decent mutual fund.
Link Posted: 6/22/2017 12:28:21 PM EST
Likely lump sum. But you have not provided enough info to use math to evaluate.
Link Posted: 6/22/2017 12:28:30 PM EST
Lump sum. 100 acres in the Shenandoah Valley and a small cabin. Live off interest of the rest forever.
Link Posted: 6/22/2017 12:30:53 PM EST
Lump camp, here.
Link Posted: 6/22/2017 12:34:31 PM EST
<------------ objective financial person

Financially, it depends on the structured settlement terms. Usually lump sum is less due to time value of money. Math needs to be done.

Financial planning wise, it depends on the goals of the individual. Does he or she want to start a business? Would require more up front $$. Is more upfront $$ needed overall for other things? Entire picture needs to be considered.

Behaviorally, it depends on the person, and whether or not he has a financial pro there to stop him from doing stupid shit. Pros cost about 1%. There is more than a 1% chance the client will do silly things with that much money. Therefore, the pro delivers value equal to or grater than the cost.
Link Posted: 6/22/2017 12:39:21 PM EST
If the total sum of the pay out is the same, you would really have to be a special kind of retard to not take a full payment upfront. Otherwise, you are just shoveling cash out of a window during a tornado.

I would literally fire that attorney for working against my best interests. I may find an attorney to sue that attorney for advising me to lose money for no reason.
Link Posted: 6/22/2017 12:39:28 PM EST
First rule of business/money is: Take the money. 
Link Posted: 6/22/2017 12:40:40 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By fatdrunkandstupid:
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
View Quote
This, then tank it in an IRA, I'm still young enough for insane compound interest.
Link Posted: 6/22/2017 12:44:17 PM EST
[Last Edit: 6/22/2017 12:45:27 PM EST by richtherake]
Lump sum.

Would start my own manufacturing business because I know what boys like.

Link Posted: 6/22/2017 12:46:35 PM EST
Lump sum, invest it, keep working at my small business.
Link Posted: 6/22/2017 12:46:53 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By RINO_Hunter:
<------------ objective financial person

Financially, it depends on the structured settlement terms. Usually lump sum is less due to time value of money. Math needs to be done.

Financial planning wise, it depends on the goals of the individual. Does he or she want to start a business? Would require more up front $. Is more upfront $ needed overall for other things? Entire picture needs to be considered.

Behaviorally, it depends on the person, and whether or not he has a financial pro there to stop him from doing stupid shit. Pros cost about 1%. There is more than a 1% chance the client will do silly things with that much money. Therefore, the pro delivers value equal to or grater than the cost.
View Quote
^^

To answer the question you have to do the calculation. OP hasn't provided enough details.
Link Posted: 6/22/2017 12:47:08 PM EST
I would take the lump sum, but the guy who is getting a nice "paycheck" every month without having to work gets asked for handouts less than the guy with a couple million in the bank.
Link Posted: 6/22/2017 12:48:51 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By richtherake:
Lump sum.

Would start my own manufacturing business because I know what boys like.

https://www.youtube.com/watch?v=bsneH0mOq-0
View Quote
Damn that's awful.
Link Posted: 6/22/2017 12:48:51 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By fatdrunkandstupid:
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
View Quote
This.....but they could pay it to your bank and have it set up in a trust with you as primary beneficiary with others listed in case you die
Link Posted: 6/22/2017 12:55:12 PM EST
Lump sum, time value.
Link Posted: 6/22/2017 12:57:44 PM EST
Lump because of Hookers and Blow.
Link Posted: 6/22/2017 1:05:59 PM EST
Would you take the lump sum?


and be done with it to move forward
Link Posted: 6/22/2017 1:08:35 PM EST
Lump sum. Pay off all my family's bills, mortgages, etc. Set up college or trust funds for their kids (I have none).

I don't need any money because I'll be living in my surplus LVSR travelling the Nation's highways.
Link Posted: 6/22/2017 1:12:19 PM EST
Don't decide until you have worked with tax accountant and financial planner (not insurance salesman or broker) who helps plan for wealth. Do not get an annuity if you take the lump sum as the fees aren't worth it unless you just absolutely need certainty from day one.

Lump sum should be less than the payout over time, but your post doesn't state that.

The only two reasons to take a payout over time are that it is considerably more than the lump sum or the tax benefit outweighs you having control now. Many settlements are not taxed because they are compensation for damages sustained, but you need to know before deciding.

Unless there is a big difference, you can probably do better by taking the lump sum, paying any debts and investing the rest for the long haul.
Link Posted: 6/22/2017 1:13:51 PM EST
Y no pole?
Link Posted: 6/22/2017 1:15:53 PM EST
[Last Edit: 6/22/2017 1:19:38 PM EST by scuba_steve]
I would generally favor the lump sum since I am already fucked on tax bracket, but you should really look at the specifics of the structured settlement, see if it is indexed for inflation in some way, and determine if it is advantageous to you to minimize the tax hit you will likely take with the lump sum. I am not an accountant, but you are likely to end up paying a hell of a lot more tax on a $1.9M lump sum award than you would the same amount divided over 20 years (indexed for inflation), assuming it was your only income. You'll also want to consider other factors, like how the structured settlement would be guaranteed and the likelihood that you would have the discipline to invest a lump sum wisely and not blow it all.

But it's probably worth your time (and money) to go talk to an accountant...and stop taking advice from people who have a vested interest in the transaction (like your attorneys) or random idiots on the internet (like me).
Link Posted: 6/22/2017 1:16:59 PM EST
Lump sum, because one in the hand is worth two not in the hand, or something like that.

Also, because sweet sweet dividends.

Also, to be able to make large purchases without financing, which structured settlements wouldn't provide.

Also, what kind of life altering injury are we talking? You alright?
Link Posted: 6/22/2017 1:17:33 PM EST
Lump sum
Link Posted: 6/22/2017 1:18:16 PM EST
[Last Edit: 6/22/2017 1:18:38 PM EST by walkinginadangerzone]
Lump sum cause now I can buy a Huracan and crash into a wall at super speeds and finish the job.
Link Posted: 6/22/2017 1:19:15 PM EST
[Last Edit: 6/22/2017 1:19:41 PM EST by cyborg543]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By RINO_Hunter:
<------------ objective financial person

Financially, it depends on the structured settlement terms. Usually lump sum is less due to time value of money. Math needs to be done.

Financial planning wise, it depends on the goals of the individual. Does he or she want to start a business? Would require more up front $. Is more upfront $ needed overall for other things? Entire picture needs to be considered.

Behaviorally, it depends on the person, and whether or not he has a financial pro there to stop him from doing stupid shit. Pros cost about 1%. There is more than a 1% chance the client will do silly things with that much money. Therefore, the pro delivers value equal to or grater than the cost.
View Quote
Yeah start a business.

You like to eat food dontcha? Everyone loves your grandma's cheesecake recipe. Open a restaurant.

Go in on it with a few of your buddies, that way it's sure to be a success.
Link Posted: 6/22/2017 1:20:00 PM EST
So it's 1.9 in a lump sum or 1.9 spread out over 20 years? You seriously don't know what the correct answer is here?
Link Posted: 6/22/2017 1:23:04 PM EST
... take the money, manage it yourself
Link Posted: 6/22/2017 1:26:43 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Strikeforces:
This.....but they could pay it to your bank and have it set up in a trust with you as primary beneficiary with others listed in case you die
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Strikeforces:
Originally Posted By fatdrunkandstupid:
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
This.....but they could pay it to your bank and have it set up in a trust with you as primary beneficiary with others listed in case you die
If you are a literal retard, this is good advice.
Link Posted: 6/22/2017 1:27:14 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By fatdrunkandstupid:
Lump sum. You never know when them payments could stop due to bankruptcy, etc.
View Quote
Yep get it up front and invest it or blow it on hookers and blow.
Link Posted: 6/22/2017 1:29:00 PM EST
Lump sum. ALWAYS!
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