Litigation

Why Consider Selling a Cash Flow

By David Austin and Barry Goldberg

Many people have a financial goal of creating enough passive income coming in on a regular basis, that they then don’t have to go to “work “ every day. If you are receiving a regular cash flow, or income stream, you own a valuable asset. It can be part of your financial plan of creating the passive income you need to quit working. Others, private investors and institutions, have cash to invest to create this regular income stream, so they are interested in your regularly received payments. A market is created. They want a better rate of return than a bank or CD will pay. Investing in your cash flow is a way to receive safe and better returns.

The question then is what is best for your financial future?

•  Keep receiving this regular monthly income, which many people aspire to, or get a lump sum of cash today, for your immediate use.
• What will you do with the money once it’s in your hands?
•  How much do you really need right now?

These are the questions you should be asking yourself, and having answers for, before you make an important financial decision like this. 

There is no right or wrong answer. It all depends on what are your short and long term financial needs and goals. The point is to be clear on your needs and goals. Then you can make informed and smart decisions in your best interests.

Full post as published by Cash Flow Solutions Blog on June 03, 2008 (boomark / email).