If you have been awarded any kind of settlement in the last few years you may have, at some point, asked yourself “who wants to buy my annuity?” People search all the time on google and other search engines and thinking they will find companies simply type buy my annuity directly into the search. Obviously before you can sell your structured settlement you need to find someone who will buy annuity from you, and the list is long and complicated. Companies buy annuities to diversify bonds that they sell on the open market, it allows them to supplement an investment folder with consistently paying, revenue generating items. The annuity purchase can be complicated and has a lot of moving parts, you need to have a financial planner on your side to represent your interests in the sale of an annuity someone who can layout all the annuities pros and cons, otherwise its you – and the companies that buy structured settlement annuities.
A fixed annuity is unique in that you can buy it, then lock in an interest rate for a period of 5 to 15 years. A variable annuity is where your interest rate is market based. When you sell an annuity it will eventually end up in the hands of someone in the market to buy an annuity, of course yours has to be purchased from you at a much lower rate than what it is sold at. You typically lose 60% of the value from the annuity by selling it to someone who comes up in the search for ‘buy my annuity.’ There is an annuity selling system in play here that if you learn you can make more from your transaction.
So, who are the companies that will buy the annuity settlement options from you? JG Wentworth is the guy who runs all the ‘its your money, use it when you want it.’ JG Wentworth is a firm that buys settlements from people who feel they would be better off with a lump sum now, as opposed to monthly payments over time.
Peach Tree Financial is another, less well known company that also can also buy structured settlements from you. Again, they take these settlements and re-package them and sell them back into bonds for sale on the open market, or to private investors.
Lets say you have a $100,000 settlement set to begin payments to you in 6 months. If you want to sell that settlement you will be offered roughly $60,000 for it. The money used to buy your settlement is on load from another bank, lets say it is being loaned at 7%. So you got $60k, the company that bought the settlement is paying their bank 7% for the money they gave you, the settlement company will then wrap the settlement into a bond that earns 12% interest and just like that, usually within 30 days the company makes 5% return on investment, or $5,000.
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