Structured settlements sound like a scary term to me who has absolutely no knowledge in financial management. I have a husband who deals with all these money matters so I never really bother to find out how some of the financial products and services work.

Recently, I was told that his relative whom had been injured in an accident and is receiving compensation from the insurance company is considering getting his yearly payment being factored. Hubby explained to me that structured settlement factoring means the company will give my relative a lump sum of money so that he can use it for his daughter college education. Then, the settlement company will then get the payment in stages.

I asked hubby how does this work because it sort of puzzled me. He explained that the relative will receive less than what he ought to get if let’s say he get it in installments. Now, I understand. I guess many companies too have this arrangement of getting future payments because some of they can use the money in investment and other short term gains.

I believe many people are just like me. We never really bother much to find out how we can make money with money. I for one will just stay in the same spot of putting my money in the bank and not doing anything about it. However, the wise ones will be the smart ones who make more money from the money they already have by wisely making use of all the financial products and services available to get their annuities, structured settlements and future payments work for them.

What about you? Are you one of the smart people who knows to to make your money grow or obtain a lump sum of money to invest in a business or are you the conservative saver like me who never seems to get rich?