Using Your Money in 2009
This is the time to invest. No matter what your financial situation is, you need to put aside some of it for investment purposes.
So, how do you break it down?
Some say to always take out 10% of your income and put it towards savings - others will tell you that money should be used for investing. Of course it all depends on your ability to stretch your income to account for any losses that you might get.
All that aside, now is the time to get great deals - whether it’s stocks, real estate, or my personal favorite - domain names - now is the time to get them cheap.
Doing this might mean you can get every item you want, but in a few years, you’ll be kicking yourself over what you didn’t buy…
How Long Should You Wait?
Not sure about where you live, but in the NorthEast, there is a group of lawyers who always talk about not settling with an insurance company until you’ve talked to an attorney.
Of course, they want you to talk to them and they only charge a fee if they win, and IF they even take your case.
That is where the truth lies - they take cases they know they can win. As the one commercial said: “We try cases, and insurance companies know that”.
So back to the question - How long do you wait to file a suit?
I’m not a lawyer and anything I say is pure opinion. But, the process takes a tremendous amount of time, so you should only wait if you have to. Otherwise get on the horn and get a lawyer!
Killer Investment: Domains
Many times when you acquire a great amount of wealth, people are looking for something to invest in. The typical replies are stocks, bonds, mutual funds, etc…
But here’s one thing that I’ll share that makes for the potential to make MILLIONS down the road.
In case you haven’t guessed by the title, I am talking about investing in domain names.
Now, I don’t mean dabbling in this space either. Recently, Property.com was sold for an undisclosed amount - my educated guess is that is sold for at least 10 million. Not bad for a $7 a year registration fee, eh?
Now, don’t start thinking that you you can quickly turn around these investments. There are only a few major brands who “get it” and realize the value of having a generic, type-in-traffic domain that will bring you new visitors everyday simply because you own a domain name that people type in naturally.
Don’t want to sell? No problem. Get the domain and “park” it. Sit back and collect the money that advertisers are dying to have their ads appear on YOUR domain.
Domaining is simply, the BEST investment in the world. Domains NEVER go down in value. THEY ONLY GO UP. I could dedicate an entire website to writing about the value of domains, but I’ll spare you. Just keep it in mind as you are looking for a fantastic place to spend your wealth.
Lump Sum Settlements: Should You Take the Deal?
Once awarded a settlement in what ever capacity, there is sometimes the opportunity to defer payments or to take all the money at once. While it may seem like an obvious choice, let’s first consider some options. Please keep in mind that I am not an attorney or versed in law, so these are all opinion and if you are presented with this situation you should consult a lawyer for the proper handling in the settlement.
1.) Taxes - You pay more now compared to an annuity payment - if you make some wise investments, you should be able to grow more from your money.
2.) Liquidity - Since you have all the money at once, there is no need to worry about when the next payment will arrive, it should all be in your bank account(s)!
3.) Opportunity to invest - Since you are flush with cash, you can invest some amount to make even more Return On your Investment (ROI).
4.) Credit - Since you have financial reserves you’ll be able to build your credit line in case the day comes when you need it.
These are just some of the reasons to take a lump sum over an annuity - You need to consider all outcomes to decide what’s best for you.
Alimony lump sum settlements
A question that is asked often is what happens in the case where alimony is awarded - can it be paid in one lump sum?
First, we must declare that we are not lawyers, and do not claim to be in any sense, and if such an event happens to you, we recommend that you find an expert in this area to guide you through the process.
All that being said, it’s been in our experience is that a lump sum is only awarded if the financial capacity of the person who must pay can reasonably afford it.
That is where the stickiness lies. As everything in the justice system, that determination will be done on a case by case basis.