Structured Settlements New York

What is time value of money? In simple words it is put as the value of money right now in you hand is more valued than the same amount of money you have ten years after now. If it is still complicated to you, then let us take an example. When a person had $25,000 as asset twenty years back, he was considered a very rich man indeed, but what is the value of $25,000 today? Nothing! That means his $25,000 dollars were much valued during tShis time. The same with your money now! If you have won a lottery that is very good, but if you are calculative enough with time value of money, you would prefer a lump sum amount almost equal to your winning amount as hard cash than the installments of payments. The money would have better time value than 20 years down the line. For instance you won $10 million in lottery, but you are entitled to get the amount in installments in 25 years or more. Instead if you sell you lottery earning right now for $8.5 million dollars or little less or more, it is more worth today than tomorrow.