STRUCTURED SETTLEMENT FACTORING

The value of Money Structured Settlement Factoring

Knowing something about at least the basics of investment is critical if you plan to play that game. Just as you would not buy a house without having all the information about the structure and costs, or a car without "kick the tires", anyone who wants to invest their money, either in the stocks or annuities should know some basic terms and its meaning, the time value of money is one of them.
In short, the concept behind this is as follows: We all know that having a rather well at this point it is better to do the same in the future. It is better to have $ 50 in your hand now $ 50 in hand three years from now. Two things about this concept are important to understand. If you have the money I promised you to three years from now, the expenditure that is deferred for the time. Makes sense, right? It is not difficult to understand that you can not spend what you do not. But there's more.
You also lose the opportunity to grow that by investing money.

STRUCTURED SETTLEMENT FACTORING

This is a quick example of one of the big ideas behind investing: the time value of money. Interest rates we all hear a lot about how the macrocosm of a national or international economy, in some cases determines the time value of money. There are some other considerations you need to take a look at also to get a full understanding of this idea. The following is what economists call the current value. All this may sound like a lot but is really just a simple concept.
Take that $ 50 bill we were using as an example. In short, the present value of the note is determined by the amount you can win with him today. If you have the money in your hands, you can invest or spend, but just at the moment when it rests in your hands is worth $ 50. That's easy. Now, let's add a little something to the mix.
There is another idea that we must look just so all our treatment of the time value of money is complete, and it is called, as might have been able to guess the future value. So let's take a look at what this means, taking our example, $ 50 again. The value just discussed, of course, the amount you can earn in the future and one of the things that determines which is the interest rate. This is the lynch pin that determines the time value of money. You may be wondering why this is important-there is a simple reason for that too.
If interest rates are low could get more for your money in terms of value to happen now. This is only one of the decisions you will make when you are thinking about investments of various kinds, including you want to do in the long and short term.

How does this relate Structured Settlement Factoring?

Factoring structured settlement is based on principles of time value of money. Is it better to wait years for their money, or get your money now? The simple answer to this question is that it is better to wait for the money owed to the discount rates applied to a structured settlement factoring transaction. The more complex answer is "why" why people need cash for your future payments. Structured Settlement Factoring is set up for people who are in desperate need of money, not for people who have other options besides factoring settlement payments.
It is always best to consult with a professional financial advisor before cashing a structured settlement or annuity policy. A financial professional will be able to help you find other options, if available, and if not available will help you complete the process of factoring structured liquidation.