What to Do With Your Settlement Money

Are you retired and have some settlement money, but looking to see how you can improve your financial security in the coming years? That is a most prudent step to take, especially if you're the generous type who is inclined to share available funds with cash-strapped relatives and friends.

What you do with your settlement money is entirely up to you. You can invest in an annuity, or a franchise (if you choose this, select a product or service you feel most passionate about), or buy stocks (which entails risks), or consider some other investment vehicle. Some good business ideas can be the jump-off point to huge fortunes. If you encounter temporary defeat, start again and build other plans. To be on the safe side, you may follow the adage, do not put all your eggs in one basket.

If you're thinking of doing nothing except buying a few luxury items, think again. Most people who win a settlement case and suddenly have money at their disposal squandered it even when they could have used it as retirement assets later on. They quickly regret not investing some funds that can help provide for themselves a decent standard of living.

Explore myriad options when thinking of what to do with your settlement money. Look back and consider the long wait or difficult circumstances you may have endured before you got your settlement money. If you obtained it after being hurt seriously in a road accident or sustaining injury while at work, and it's all that you'll be depending on in the coming years, you really need to give careful thought to how you can invest your periodic payments from your structured settlement. By managing your funds well, the better off you will be in the future.

If you are considering buying an immediate annuity, choose a financial services firm or life insurance company with financial strength. There are private rating agencies that can help you in ascertaining which ones can be relied on.

Take stock of your financial inventory and see how much you will need for your living expenses and how much can be tied up to an investment. If you just retired and you want an income that's spread out over the remaining years of your life, purchasing an immediate annuity may be one of your best options.

Source by Sam Renolds