No Load Structured Settlement - What Options Are Available
by Doug Smith

To determine whether a structured settlement or a no load equity mutual fund is best for you financially, research the pros and cons of both. There are both advantages and disadvantages to structured settlement no load mutual funds. Proper research can help you define what is best for your situation and life-long term financial security.

The term "no" in "no load" means that you do not pay redemption fees when shares of the no load mutual fund are sold. Many mutual funds charge front- or back-end load fees.

You need to understand fully what costs are associated with mutual funds before you can compare different funds. There are management and expense fees associated with both "no load" and "load" mutual funds. These fees are deducted from the returns.



To create a structured settlement, a fixed annuity contract is issued by a third-party (neutral party) life insurance company. The assets are invested in the insurance company's general account on behalf of the party at fault, to be paid periodically to the injured party.

With structured settlement no load mutual funds, an investment company in charge of the fund allocates the assets from many investors into equity securities.

In structured settlements, payments and distribution are determined at the beginning. This can provide a steady stream of dependable, predictable lifelong income.

Alternatively, structured settlement no load mutual funds have shown the best potential for long term financial growth. A drawback to choosing structured settlement no load mutual funds is the higher investment risk. Your income may decrease or even stop if the no load mutual funds is performing badly.

For structured settlements, the annuity issuer guarantees payments to the injured party according to the court-appointed terms of the structured settlement agreement. With structured settlement no load mutual funds, however, your investment is not guaranteed! The financial returns from structured settlement no load mutual funds depend on the share prices and fluctuations of the equity mutual fund.

The income from a structured settlement fixed annuity is tax free if the settlement results from personal physical injuries or a physical illness.

Alternatively, with the structured settlement no load mutual funds option, taxes must be paid on payments received. This is because shares are sold to generate the income, and income from the sales of the mutual funds shares is taxable. There are also other tax concerns with capital gains & losses from the sale of equity mutual funds.



Structured settlement recipients cannot make changes after the settlement. Payment amounts and schedules are fixed, so payment agreements cannot be changed or accelerated.

An advantage of structured settlement no load mutual funds, however, is that you can withdraw your money and move from a poorly-performing fund to one that gives higher returns. This can be a big advantage if you need to raise emergency cash.

Of course there are both advantages and disadvantages to structured settlements, and structured settlement no load mutual funds. To determine the financial option best for you, hire an experienced lawyer. Your lawyer can advise you whether structured settlement no load equity mutual funds are correct for you.

This article is ©2006 by Doug Smith. Got a structured settlement and don't know whether to keep it or sell it? Want to know how to get the most money out of it? Browse our library of free articles and tips on structured settlements. Visit StructuredSettlements.LoansForAnyCredit.com. This article may be freely reprinted as long as this copyright notice remains intact, the article is unchanged, and all hyperlinks remain active and clickable.