Structured Settlement Investments Have Have Upsides and Downsides
I don't think structured settlement investments are a bad idea Per Se. It does allow a high yield and it is viewed as a more secure instrument because the original settlement that is designed to protect the holder of the future payments wrights, often a personal injury victim, assuring that he has a means of support in the future.
It should be noted, however, that stuttered settlements are much rigid and not flexible or liquid once settled.
The claimant agreeing to a structured settlement can't change anything after the agreement is done. Not the number of payments, their amounts, structure and length of payout periods.
Nor is it liquid. You can't withdraw funds for any reason, whether dependency of the money, distrust to the annuity issuing company, and the like.
You are basically locked in. Unless you sell it, and at a discount. Exactly what structured settlement buyers are doing. You ain't investing in a structured settlement annuity only to sell it for a lump sum at a discount, are you?
So, buying out or investing in a structured settlement transfer, you'll face the exact same restrictions and limitations as the original holder. Only that you get a higher profit thanks to the fact that it was purchased from the holder at a discount and this is what you're taking advantage of.
Once again, I do not say structured settlement investments are a bad idea; they have their pros and cons. It depends on the nature and structure of settlement. If it's set up for many, many years, it has more of a disadvantage. On the other hand, structured settlements are really very, very flexible at the time of setting them up. So, if it's structured in a way that you can take out lump sums in larger amounts at some periods it reduces somewhat this drawback; on the other hand, you get a lower return on the withdrawals than you would with it remaining longer in the policy.
Perhaps a structured settlement investment sounds good as an addition and diversification of a portfolio, adding more security and setting off other risks. It carries its own risk when left going for so many years.
A partial investment in a structured settlement, perhaps, would be a more reasonable move. Everyone is different. It may well work for you.
I disagree, though, to absolute opponents of structured settlement investments. They do have their upsides.