So my guess is that you are looking to sell your structured settlement in order to get cash now. There are a few things you need to know, the settlement cash structured for flow can eventually get to a point where it no longer meets your current financial situation. Perhaps you have run into some credit card debt, or you need to go back to school so you want access to the money now, rather than waiting for it over time. Getting cash for structured settlement payment can be difficult but if you plan to off-load your annuity settlements there are a few things you should know. Structured annuities are designed and structured for a reason, to make sure you don’t blow the money all at once, so before you decide to sell make sure you really do need the money.
Top 5 Things YOU NEED TO KNOW about Structured Settlement Cash Now:
1. It is not legal in all states.
2. You will be offered much less than what the total sum of money is worth.
3. The company buying your settlement cash structured for flow is going to sell it again on the open market.
4. You CAN sell only portions of the settlement, years 5 to 10 for example, rather than the whole thing.
5. Only exchange guaranteed money in the future for lump sum of cash now, if you absolutely have to.
Structured Annuities can only be bought and sold in certain stated under certain guidelines because the government mandates such actions to prevent predatory lenders from taking advantage of its citizens. If you have a total annuity settlement worth $500,000 and it pays you $2,000 per month over 20 years you will most likely be offered 40% or so of the total value of the annuity. So right around $200,000 lump sum cash in exchange for $2,000 per month. You are losing $300,000. So the only reason it would make sense to adjust your settlement cash structured for flow is if you can make better use of $200,000 now than you could with $2,000 per month over 20 years.
You can get $200,000 worth of home on a 15 year mortgage paying $2,000 a month, a home that after 15 years will be totally paid of and still increasing in value. So with the annuity settlement you can have a nice home, paid off in 15 years while all your income goes to something else, living expenses, college education funds etc. Only under rare circumstances would I exchange long term structured payments for short term cash now.
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