Liberty1100 wrote:Take a look at the tax implications. These payments will forever (until taxes change) be tax free from state, federal and income taxes (from what I just googled, check a CPA on that). I would take that to the bank and don't sell. If you did sell and that $1million because invested, all of those earnings are taxable, or worse, it becomes only $100k. Don't do it!
Now that you have those payments no matter what, you can be a little more risky with your investments or other cash if you would like. Maybe move around other budgets to get you the cash you want. Maybe you can adjust your 401k or retirement savings to a lower amount.
Yes, I was going to inquire about tax implications. It may turn out to be the biggest decision factor besides risk alteration.
OP, was is your exit strategy with regard to the real estate business you're getting into? What is the timeframe? Where will you be in 10 years if you use conservative assumptions? What are your conservative assumptions? What happens if your real estate property achieves zero appreciation in 10 years?
There are 2 questions being asked, first, are you getting a fair value on your structured settlement? And that depends on the market for it. Did you inquire and seek out a quote, or did they come knocking? Do you have competing offers? Is there an offer from the company holding the settlement?
The other question is whether it makes sense for you to invest in a real estate business. If this is your only option, and the prospects are excellent, then take the risk. But if there are less risky ways of getting there or the risk/benefit not very favorable, then you have to ask yourself if it's worth stepping away from a secure income stream.