To understand how a lump sum payment can help provide you with opportunities, we first need to understand how we can find them. There are a number of sayings that we have about opportunity. “When opportunity knocks, be sure to answer the door.” I interpret this expression as meaning that you should pay attention to things going on around you so that you recognize an opportunity when it comes along. But I prefer the saying, “Opportunity is when preparation meets perspiration.” I like this one better because in this saying, you aren’t just waiting for opportunity to come along. You’re creating your own opportunities.
So how can you create your own opportunities? If you look at the two words, you can work it out. Preparation, to me, involves not just recognizing opportunities, but doing what you can to make the way for them. If you want to start a business, do the market research and write a business plan. If you want to get a good deal on a new home, get your other debts paid off so that you can get a good interest rate on a loan. Then the perspiration part comes in with some plain old hard work – putting the plan into action. But if you have an annuity or receiving structured settlement payments you have the option to convert those payments to a lump sum of cash and you may not have to perspire quite as hard. You can, instead, recognize the opportunities that the cash can create for you, and then take the steps needed to put those plans into action.