Juliette Fairley - What are the cons of a structured settlement?
In this video, Juliette Fairley explains that the downside of a structured settlement is its limited liquidity, as recipients can only access the negotiated periodic payments and cannot obtain a larger lump sum when immediate cash is needed.
Video Transcript
The downside of owning a structured settlement is that the money is not available to you right away.
So you are dependent on whatever you negotiated, whatever contract the company set up for you, and you are limited to that amount of money per month or per quarter, and you can't get any more money than that.
And some families come into situations where they have emergencies where they need an immediate lump sum, they need a large cash payment, and they need to liquidate their assets. And that money is not liquid. It's not available. It only comes in that payment.
