If you have a large settlement coming in, making sure to plan accordingly will be critical if you hope to avoid lining up in financial distress later on. However, you do not need to continue to struggle while you wait for your settlement to come in.
You can work with High Rise Financial loan specialists to obtain a portion of your settlement funds now. Here is more about what you can do to plan for your incoming settlement and access a portion of your settlement within hours.
In This Article
Hire a Financial Advisor
One of the first steps you need to take if you have a large settlement coming in is to hire a financial advisor. Generally, financial advisors will not require you to put any money down. So even though your settlement may not be in yet, you should still be able to work with a financial advisor to discuss your future goals.
Your financial advisor will be there to help you determine whether your goals are realistic, answer any questions you might have about investment opportunities, and help you figure out how to spend your settlement so you can set yourself, and potentially future generations, up for success once your settlement funds come in.
Working with a financial advisor helps to ensure that you do not spend your settlement funds frivolously. Instead, you can use them to build wealth, get out of debt, and start the next chapter of your life.
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Prepare for Potential Tax Implications
Having a large settlement come in is not always a good thing for tax reasons. The source of your settlement will determine whether you are going to be required to pay taxes on the funds.
For example, if you recently went through a motor vehicle accident, you may be expecting a significant amount of compensation through your insurance settlement. You might be awarded compensation for your lost income, medical expenses, loss of future earnings, pain and suffering, and other types of economic and non-economic damages.
However, only certain types of damages will be taxed. For instance, any of the compensation you are awarded that is supposed to cover your loss of income will be considered taxable income the same way your regular income would. Furthermore, if you use your settlement to participate in investment opportunities, any gains you receive after this investment will be taxed as well.
Fortunately, when you are waiting for your settlement to come in, you can prepare in advance. You can discuss your concerns regarding the potential tax implications associated with your large settlement with your financial advisor and accountant to ensure that you are preparing accordingly.
Build an Emergency Fund and Get Out of Debt
Another way to set yourself up for success when you have a large settlement coming in is to start building your emergency fund and getting yourself out of debt. Although using your settlement to cover outstanding debts is not the most fun way to spend your settlement money, when you have outstanding debts, they can continue to follow you for the rest of your life.
Taking care of that now is a great way to clear your financial slate so you can start building an emergency fund. It is important to have a minimum of 3 to 6 months’ worth of savings in your emergency fund at all times. That way, you can be prepared to handle any major emergencies that may come your way.
For example, if you suddenly were no longer able to work, lost your possessions in a house fire, or were stuck dealing with some other type of emergency, you would still have your emergency fund to rely on so you could cover your costs and expenses while you figure out what your next steps should be.
Consider Potential Investment Opportunities
After hiring a financial advisor, paying off your debts, preparing for tax applications, and building an emergency fund, you are ready to spend your settlement money wisely. One of the best ways to make the most out of your settlement is by considering your investment opportunities.
This does not necessarily mean you have to put your entire settlement into the stock market. There are many different types of investment opportunities you may want to consider.
For example, perhaps you have decided you no longer want to work for someone else and want to open your own business. This is an investment in yourself and your future that you should take seriously.
You might want to begin investing in real estate properties, friends, and family who have business ideas in mind, or work with your financial advisor to consider more complex types of investments, such as REITs, bonds, stocks, alternative investments, and more. This is your opportunity to start building an impressive portfolio for yourself and your family.
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Get Access to Your Settlement Funds as Soon as Today
Thinking about the possibilities that come with your large incoming settlement is exciting. The good news is you do not need to wait for your settlement funds to come in to start executing these plans. Instead, you can reach out to a High Rise Financial loan specialist to access your settlement funds in advance.
How to Qualify
To qualify for legal funding, you will need to be working with an attorney. You must be at least 18 years old and have an anticipated settlement. Our loan specialists will work with your lawyer to determine whether your application should be approved or denied.
How to Pay Back Your Lawsuit Loan
Paying back a lawsuit loan is risk-free. Although you may have concerns regarding what will happen if your lawyer does not win your case, you can breathe easier. Legal funding is non-recourse, so even if your lawyer ultimately does not win your case, you will not be expected to pay your pre-settlement loan back.
However, if your lawyer does win, they will pay back your lawsuit loan for you using your settlement funds and write you a check for the remaining balance.
Call Our Loan Specialists at High Rise Financial for Help Today
Your incoming large settlement could be life-changing. But you do not need to wait for your settlement funds to come in. When you access our pre-settlement legal funding with High Rise Financial, you can escape financial ruin and begin to build financial security and generational wealth.
Find out how much you could be authorized when you contact our loan specialists today. You can call us, apply now, or fill out our quick contact form to get started.