A company or broker has to be found, who deals with the sale of structured settlement annuity payments.
Buying structured settlement payments is difficult. Find someone who knows what they are doing. Find out how long they have been in business.
Go to your local Department of Consumer Affairs to see if there are any lawsuits being filed against the company or broker buying your settlement.
If the person you are talking to seems genuine and has your interest at heart than you may have the right person. No one has all the answers, but any one who you feel is willing to take the time and make you feel comfortable about what you want to do is the right person. Trust your instincts.
When will I get my money?
This is a complicated process it will take one and half to four months to get your money. Anyone who says faster, run don't walk, because they are not being truthful.
1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing ? it makes selling your settlement a little safer.
2. The Insurance Company ? This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3 An expert broker or a company that knows the different funding companies and their requirements will save you time and effort.
4. Check your Insurance Companies Rating? Make sure the Insurance Company has an A rating! Ultimately you will get a higher profit margin when your settlement is sold to larger financial companies. If a company has a lower rating then they may have to sell off settlements at a lower profit margin resulting in a lower price to you.
5. Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , application, any child support payments out standing and ect. are what are required. You get the idea of why you need someone who knows what they are doing.
If you add up all the payments and think you are get something close to that figure, your wrong. Why? If you WAIT for your payments, you will get that amount. Your NOT WAITING, someone else is. They want a profit and they have to wait to get their money back, they gave you. $120. paid today is worth $120. $10. a month paid for 12 month is not worth $120. today. Its worth $120. in one year when you get all the payments. This called the time value of money and to many its confusing. Look at other sources for money like family, friends or a bank loan.
Selling your structured settlement isn't easy. What about a tax consequence? IRS in a private letter ruling said that there isn't any tax liability for selling a structured settlement.
When selling your structured settlement, think about selling only a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement payment in the future.
Know that your settlement was meant to be used over time and selling it now can leave you with money problems down the road.
Frank ReCouper Sr. is President of FDR Resources and has been in financial services for over 45 years. For more information: http://www.money-now.net/structured_settlement_resources.htm or http://www.rp-capital.com
So you've been given a structured settlement, but is there a way to sell a structured settlement? The quick answer is yes you can. There are many companies out there you can 'sell' your settlement to in exchange for a lump sum of cash up front. In this way, you can get the money when you need it instead of waiting for it to all come to you piece by piece.
Before you decide to sell your structured settlement, however, you need to fully recognize what you are doing. While you will definitely get a large amount of money up front, you should know that it will most likely be less than what you would get in the long-term if you stick with the payment plan. Companies that buy out structured settlements do so in order to make money, otherwise there would be no point.
Also, before you 'cash out' make sure that you actually need to. There is a huge difference between wanting something and needing it, and you need to recognize the difference. Some sort of emergency due to disaster or unforeseen illness certainly qualifies, but if you just want a new plasma tv or something similar you shouldn't touch the money yet. Depending on the amount of your settlement, you should be patient and wait for your payments. If your settlement is pretty small however, it may be safe to cash out. Alternatively, if your settlement makes up a large amount of your income, it's not a good idea to touch your settlement money.
The best thing you can do when you get a structured settlement is be patient and look at your payments as an investment in yourself. This is pretty much what companies that buy out settlements are going to be doing. They are willing to take the financial hit up front because they know that the investment will pay off in spades eventually. If you are financially able to just sit back and let the money roll in., it could pay off big time for you.
Another good thing you can do with your settlement money is to invest it, whether you cash out or not. If you stick to the structured payment plan, you can easily have it automatically put into an investment plan on a monthly basis. If you are more of a risk taker, you can sell your settlement and invest it. Of course, this can pay off in a huge way or be a dismal failure, so you should always consult with your financial advisor before taking such a risk. They can advise you on the best options for your money.
Conclusion
The simple answer to the question is yes, you can sell your structured settlement. There are many companies out there are willing to buy your settlement from you, but you have to be certain that you need (not want-there is a big difference) the money right away, rather than waiting for payments. It might be a good idea to sell your structured settlement in an emergency or disaster situation however, when the money is really needed.
Both Frank Recouper Sr. & Peter Johnson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Frank Recouper Sr. has sinced written about articles on various topics from Finances, Family and Finances. Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R. Frank Recouper Sr.'s top article generates over 3600 views. to your Favourites.
Peter Johnson has sinced written about articles on various topics from Affiliate Programs, Internet Marketing and Panic Attacks. Unsure what to do with your structured settlement? Want to for cash? Discover information and resources on all aspects of stru. Peter Johnson's top article generates over 90500 views. to your Favourites.