by Structured Settlement Watchdog
Sell Structured Settlement May Jumpstart Savings Plan is an idea to which the DRB Capital marketing team has devoted an entire webpage. It has to be straight out of the script for "Rubbish TV"
Who writes this Garbage for DRB?
1. "When you are trying to get a savings plan started, it may not be a bad idea to sell your structured settlement in order to get a nest egg. This can be quite beneficial, as it could give you a step-up when trying to build your financial portfolio. However, when embarking upon a savings method, there may be some options that could encourage you to look at your plan more closely"
Fact: Selling your structured settlement to any structured settlement buyer is ALWAYS a money losing transaction.
Therefore it follows:
"Selling your structured settlement to jumpstart your savings plan" is pure rubbish .
Selling your structured settlement is not a step up. It is a big financial step down.
2. To support the rubbish idea, what is published by DRB is an admission that "Many savings accounts may not have an ability to garner a significant amount of interest, but not all options are this way". Citing BiggerPockets, DRB says "there is (sic) actually some savings accounts that will give you a notable amount of interest for your savings plan. Look for different banks, as they will all offer different things, but some accounts may even exceed 2 percent if you are there for long enough. At 2% without taxes it takes 36 years for your money to double, if you don't invade the principal in the interim. Of course interest on CDs and bank saving account is taxable so assuming combined taxes of 30% with a net rate of 1.4%, it would take more than 51 years for your money to double.
Most people live off their income. A structured settlement is like a job you can never be fired from. If you're living off your lump sum after "giving up your job", or "reducing your hours", it's like watching the sand drifting from the top of an hourglass. Only in your case, throwing water on it will not solve the problem that would result from executing on the flawed idea published by DRB Capital.