| How often do you find yourself saying: "I wish I | | | | good option for those seeking to avoid any risk. |
| knew how to learn more about structured | | | | As you've read until now, structured settlement |
| settlement mutual funds" | | | | mutual funds is a subject that needs knowledge |
| Well, this article about structured settlement | | | | and effort to work around. And the information in |
| mutual funds was written with you in mind. Enjoy. | | | | this article was gathered from several resources. |
| Among the options open to you if you've | | | | There are some more gems of wisdom in what |
| received a structured settlement from a lawsuit | | | | follows - keep reading. |
| or arbitration is what's known as structured | | | | Structured settlement mutual funds are not |
| settlement mutual funds. You should take some | | | | guaranteed. The upside is the potential for earning |
| time before you choose an investment vehicle for | | | | more if the mutual fund's value increases. It's like |
| your settlement money and learn the pros and | | | | getting a raise, but it isn't a sure thing. |
| cons of the mutual fund option. | | | | From a tax standpoint, income you receive from |
| Always keeping your long-term financial security in | | | | a fixed annuity is tax-free (in most cases). |
| mind, structured settlement mutual funds offer | | | | However, structured settlement mutual funds are |
| advantages and disadvantages when compared to | | | | subject to capital gains taxes and the possibility of |
| other investing options. | | | | some income taxation. Keep in mind that if your |
| When you are awarded a structured settlement, | | | | mutual fund loses money, the losses can be |
| an insurance company sets up an annuity in order | | | | written off of your tax bill (under most |
| to pay you small portions of the money at regular | | | | circumstances), so it's not all bad if things don't go |
| intervals. The safest option is to keep the | | | | well. |
| money"in house" and get a guaranteed scheduled | | | | Choosing a standard structured settlement fixed |
| payment that will never change. The downside to | | | | annuity means you are locked into a set payment |
| going this super-safe route is that your money will | | | | amount and schedule. If your needs change down |
| not grow (much, if at all). | | | | the road, this may cause you some financial |
| With structured settlement mutual funds, | | | | hardships. With structured settlement mutual |
| however, the money is invested in one or more | | | | funds, you are allowed to move money around |
| mutual funds. Mutual funds are groups of individual | | | | (within certain strict limits) from fund to fund. This |
| equities (stocks), the make-up of which is closely | | | | will allow you to adapt to changes more readily. |
| managed in an effort to maximize returns. The | | | | As should be clear by now, this is not an easy |
| individual stocks in any mutual fund can change | | | | decision. There are many pros and cons, whether |
| regularly. | | | | you choose structured settlement mutual funds, |
| This introduces an element of risk - sometimes | | | | the fixed annuity option, or any other alternative. |
| significant risk. So, if you have your structured | | | | This is one reason why it's a smart move to |
| settlement money in a structured settlement | | | | enlist the services of a competent lawyer who |
| mutual funds set-up, you have the potential for | | | | specializes in this area of the law. It's also wise to |
| higher rates of return, but you also incur more | | | | educate yourself as thoroughly as possible before |
| risk that you'll lose some of your money. | | | | making the final decision. |
| In most structured settlements, the annuity that | | | | The day will come when you can use something |
| is set up is guaranteed. You are assured of | | | | you read here to have a beneficial impact. Then |
| getting the same amount, month in and month | | | | you'll be glad you took the time to learn more |
| out, until the settlement money runs out. It's a | | | | about structured settlement mutual funds. |