Handling a Cash Settlement
Many people sit and dream about the opportunity to win a huge amount of money at the casino, or in the lottery, or even be awarded a lot of money in a court case. However, what most people don't stop to consider is that handling a cash settlement often comes with as many negatives as there are positives, and often even more. With the proper care, forethought, and planning handling a cash settlement can be the blessing that most of us hope that they are.
- Obtain advice. The very first thing that anyone who is thinking of handling a cash settlement must do is obtain professional help. This is not to say that you will need to go out and get a therapist, but rather you should hire a money manager. With the help of a money manager you can ensure that your money doesn't get wasted, and that it will in fact grow in size. Before hiring a money manager though, make sure that they have a positive reputation.
- Don't be in a hurry. One of the common problems that many people run into is that they get into a hurry about buying things, or even simply getting into a hurry period. The key to handling a cash settlement is to slow down and take your time. Consider all of your options, listen carefully to the advice that you get from people you trust, and then carefully make your decision.
- How will this affect your taxes? Another of the huge things that many people fail to consider when handling a cash settlement is the question of taxes. Most often a large cash settlement will mean that the winner is put into a higher tax bracket. Often that higher tax bracket will mean that you pay a larger amount of taxes. In addition to the amount of money in the settlement being taxed, most things that you purchase with it can also be taxed (such as houses, cars, and other "investment" type items).
- Can you sell it? Many people think that a great way to go about handling a cash settlement is to sell it off for one lump sum. However, this may not always be the case. The reason for that is that there can sometimes be legal limitations to whether or not you can sell a cash settlement. Before you sell the settlement, make sure that first you legally can, and second that you can financially afford what the results will entail.
Author Bio
Lee Wyatt
Contributor of numerous Tips.Net articles, Lee Wyatt is quickly becoming a regular "Jack of all trades." He is currently an independent contractor specializing in writing and editing. Contact him today for all of your writing and editing needs! Click here to contact. Learn more about Lee...
Replacing an Interior Light
Eventually, lights burn out. Replacing a car's interior light is a simple and easy process that can take you all of about ...
Discover More
Cleaning a Cat Mess
Cats can be a wonderful addition to the family, though like any family member they can cause a few problems that you have ...
Discover More
Repairing a Leaking Tank
Over time just about everything will leak, and your toilet is no different. Perhaps one of the more annoying locations ...
Discover More
Tapping Into Your Home's Equity
There are many options for tapping into your home's equity. Banks offer several kinds of home-equity financing options ...
Discover More
Obtaining a Business Grant
If there is one part of starting a new business that is the most stressful, then it has to be coming up with the money to ...
Discover More
How to Calculate Your Cost of Living
The Consumer Price Index is a measurement of a basket of goods and services. By looking at the CPI for your location you ...
Discover More
Comments