What is an Odd Cash Flow? Here are a few examples:
- Personal Injury Settlement
- Medical Malpractice Settlement
- Wrongful Death Lawsuit
- Sexual Harassment Lawsuit
- Wrongful Termination Lawsuit
- State Lottery Winnings
- Television Game Show Winner
- Disability Income Payments
- Hole-in-One Winner at a Charity Golf Tournament
The commonality here is that a person has been wronged or won a potful of money. The “payor” of these monies may be an insurance company, large corporation or a public entity. They are stable with millions or billions in assets. The recipient has a large degree of certainty that he will receive the money awarded.
These situations are typically litigated and the settlements may involve large sums of money. Consequently, the final arrangement may not be a lump sum payment, but rather periodic payments over time. Sometimes, the recipient may become unhappy with the payment schedule or have a pressing need for cash.
What to do?
Many of these “payors” will allow their structured payout schedule to be interrupted with a lump sum or series of lump sum payments. We have a long standing relationship with an investor who purchases these odd cash flows. If you or someone you know is in this situation, please call me and let’s see what we can do to help.