How to Invest Structured Settlements

If you’ve been the victim of a major personal injury case, you may have had the option of taking a structured settlement. These settlements provide a stream of cash flow on a monthly or yearly basis rather than a single lump sum. If you have other income that takes care of all or the majority of your ordinary expenses, you may wonder how to invest the money so that it provides benefits for years down the road.

Real Estate

A structured settlement might provide enough money for you and your family to upgrade your housing situation. If so, it might be worth looking into the real estate market in a desirable location. Even if you’re not looking to move, structured settlement payments can go toward paying off an existing mortgage or a new rental property. Both can provide some nice cash returns over time. By paying off your house, it could be possible to avoid years of interest payments. By buying a rental property, you could have your renters pay off your mortgage, or you could start bringing in a hefty cash flow if you pay for the home in full.


Bonds can provide a steady rate of cash flow. Most will pay interest on a quarterly basis. When the bonds reach maturity, you’ll get your initial investment back if you buy a single bond. There are also bond funds that focus on government bonds from the US or other nations, municipal bonds or corporate bonds. The bonds will pay interest based upon the presumed creditworthiness of the issuing body. Therefore, a bond from the US will pay much less in interest than a similarly denominated bond from Greece. Many bond funds pay interest on a monthly basis. Therefore, a structured settlement that’s invested in bonds can provide a nice level of income that rolls in on a regular basis.


Stocks provide a slice of ownership in the company that issued the shares. As owners of a small slice of the company, shareholders are entitled to a portion of the income the company produces. When companies pay dividends, shareholders get a cash payment that can be spent or reinvested. The overall stock market tends to go up over time so owners can also lock in some nice capital gains. Investing in the stock market through mutual funds is usually going to be a better option for most ordinary people because of the automatic diversification it provides.

Structured settlements are compensation from individuals or companies that do harm (source: Settle4Cash). They provide income on a regular basis. By investing the proceeds of a structured settlement, the benefits can last well beyond the settlement period as rents, interest and dividends continue to flow toward an investor.