Despite the claims of late night TV commercials for psychic hotlines, no one can consistently accurately predict the future. We can guess and plan, but as the Yiddish proverb says, “Mensch tracht, un Gott lacht” (“Men plan, and God laughs”).

In essence, the entire “cash flow” business, including structured settlement factoring and lottery purchasing, is based on this truth. Despite careful planning, thoughtful and well-advised decision-making and all the best intentions, sometimes things don’t go the way we plan. At the settlement table, certain assumptions are made about future needs and costs. Considering that these plans often look 20 years into the future, it is no surprise that sometimes they miss the mark. Over time, unexpected needs may arise, or perceived needs may no longer exist. People get sick, or need new things to make life more bearable. Or, on a more positive note, new and unforeseen opportunities arise, such as a chance to buy a new house, or go to school. “God laughs” at the arrogance of men presuming to know the future. Structured settlement factoring allows for such unexpected changes, by providing an opportunity to sell future payments to meet that present – perhaps unforeseen – need.

The same can be true for other types of guaranteed future payments. People buy single-premium annuities based on certain assumptions about future needs and plans. They assume, and are usually right, that they will need a certain amount of money per month to live, etc. When they are not right, and the plan falls apart, companies like Settlement Capital can help, buy purchasing future payments and effectively “cashing out” the annuity, in whole or in part.

A recent news story caught my eye. The sad article was about Mr. Wayne Schenk, a man with terminal cancer who won the lottery. The doctors give him 12 to 18 months to live, but the lottery “Million Dollar” prize will only pay him over time, to the tune of $50,000 a year, for 20 years that he is unlikely to see. Thankfully, companies like Settlement Capital can and do provide liquidity options for lottery winners too, and I’m sure Mr. Schenk will be able to cash out this prize for a much needed lump sum. With some cash, Mr. Schenk can start cancer treatments and improve his chances of survival, along with improving his quality of life for whatever time he has left.

Fortunately, most people who experience a change in circumstances and need to liquidate their structured settlements, annuities and lottery winnings are not in the extreme position of Mr. Schenk. Nonetheless, when the need arises, we can help.