News and Tips on structured settlement transfers.

Cash

June, 2011


29
Jun 11

Selling Your Structured Settlement: Is Now the Best Time?

With our current economic recession lasting longer than most annalists had initially expected it too, it is becoming difficult to find anyone who isn’t concerned about their money. In these difficult times, those who are receiving monthly payments on a structured settlement are often wondering about whether they should opt to cash out now and receive a larger lump sum or if they should try to wait out this slowly recovering economy. Whether or not selling your structured settlement payments is an appropriate decision depends largely on each person’s own personal circumstances, situation, and willingness to live at a, sometimes greatly, reduced standard of living compared to what they may have been accustomed to before.

Regardless of the current economy, you must ask yourself some basic questions prior to considering the sale of your structured settlement payments. For example, do you sincerely need the lump sum now? Have you or your spouse recently lost a job and is this why you feel the need to sell? If so, can you wait things out until you or your spouse is employed again without selling your payments? Are you encountering debt problems with respect to mortgage payments, vehicle payments, utility or credit card payments that may affect your credit rating if you are unable to become current? In the event that your financial situation falls into one of these categories, choosing to cash out your structured settlement now, rather than receiving monthly payments that are inadequate under the circumstances, may be the most logical choice for you in these tough economic times. It may also help save your home from foreclosure and your car from repossession. In addition, it will allow you to avoid any of the consequences of having a default judgment filed against you for unpaid credit card bills, such as bank account freezes and wage garnishments. These types of black marks can stay on your credit rating far longer than the most pessimistic of economy annalists would predict our mild recession to last.

If, on the other hand, your financial situation is more stable, you’re current on your bills and have steady employment, opting to cash out at a rate anything even a little less than what your full structured settlement is truly worth, simply to have the extra money on hand, could be  possible but really doesn‘t make much financial sense. Even though rates are at there lowest in the history of the industry, cashing out a structured settlement means that you are cashing out each payment for a discount of their actual future value. If you are not in a position to pay your bills, the percentage may seem like a small price to pay to help you catch up and get your life back in order. Those in more stable financial situations, however, might not see as much benefit to losing even a portion of their full settlement figure when they do not truly need a lump sum immediately.

In addition, make sure you shop your payments to multiple companies or use a structured settlement sales broker to handle your shopping for you. For the small cost of using a broker you can do away with the time consuming hassle of shopping around yourself, while knowing at the same time that it’s in your broker’s best interest to get you the best deal if he has a percentage commission riding on the outcome.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


29
Jun 11

9 Common and Uncommon Reasons to Sell Your Structured Settlement

Your reason for want to sell your structured settlement payments does not need to be a desperate need for a large amount of money, it dos not need to be for some exotic new medical treatment, it does not need to be to save your home or even to pay down large credit debt. All your reason “needs” to be is one thing- approved by the court. Now, I am most definitely not advocating that you sell your structured settlement payments to buy that dream Ferrari you’ve always wanted and then be left with not even enough money to pay to insure the thing. But I am trying to illustrate to you that your reason for selling just needs to be found to be in your best interest by the court. Only you can assess your particular needs, however here are my 9 favorite reasons to sell your payments.

1. The desire to acquire a business leads many people to sell their structured settlement; they see the acquisition of their own business as an investment in their future, and believe the capital to get them started, in the form of selling their structured settlement, will have bigger payoffs later on or will lead to positive cash flow over a longer period than if they just stayed with the settlement payments.

2. For those who went in with a group to purchase a lottery ticket, selling the annuity can be particularly appealing. Often in these situations, one or more members of the group will be fine with long term payments, while others my want or need their cash now in one lump sum. Unfortunately, Lotteries pay our based on the ticket; not by how many people “went in on it”. Meaning, the only way to satisfy everyone would be to sell the payments and divide the lump sum.

3. Paying off existing debt is the number one most common reason people choose to sell their structured settlement payment. If you take a look at your existing debts, you could be shocked to realize how much interest you are paying on credit cards, your home or car, turning the decision to sell your structured settlement into a financially responsible choice. Not to mention, rates on structured settlement sales transactions are much lower than normal credit card interest rates at this time.

4. Returning to college is in the top three reasons people cash in a structured settlement. This is a wonderful way for you to use money awarded to you from an accident to help train you to do new job; leading to long term cash flow in the future.

5. Emergencies can happen to anyone, anytime, whether they are medical emergencies, the loss of a job, or necessary home repairs which can cost a small fortune. Selling a structured settlement can often be a cheaper choice than taking out a loan and then paying interest to pay for these emergencies.

6. Many people cash in their structured settlement in order to purchase real estate. Taking the lump sum received from the sale of the structured settlement and using it to purchase rental properties could end up bringing in a rental payment which exceeds the previously received monthly disbursements—a smart choice!

7. Employment changes can be a compelling reason to sell your structured settlement, as losing a job can be traumatic, both financially and emotionally.

8. Buying a home, or a vacation home are common reasons to sell a structured settlement, as, again, such as purchase can add real long-term value to your financial portfolio.

9. Wealth transfer planning can be a motivator to sell a structured settlement; such a plan must be started during your lifetime, and certainly the sooner the better.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 2

Structured settlements are payments that are given out by insurance companies to help you cover ongoing costs that you may experience from the result of an accident. These payments are usually annual or bi-annual and are meant to cover living and medical costs. People who receive these structured payments are usually interested in selling these structured payments for a lump sum. By selling your structured payment, you won’t receive the full value of the settlement, however, you will receive a considerable portion of the original settlement.

Selling your structured settlement loans are very advantageous if you are able to invest it and earn a higher rate of return. Most people who are looking to sell their settlements will often use the money to pay off any bad debt they may have or use the money to take out a mortgage loan. No matter what you intend to do with the money, many people feel that they will get more value from selling their structured settlement than keeping it.

If you are looking to sell your settlement, you should know that there are different ways to do it. You can either sell your whole settlement payment or sell partial of the settlement. The best way to go about selling your structured settlement is finding a broker who specializes in selling structured settlements. Because the structured settlement payments are guaranteed income, there are many people who are looking to invest in these settlements to give them guaranteed income. These investors are often looking for a safe return on their investment.

Depending on the company who is giving you the structured company, you may not be able to sell it. Some companies don’t actually allow the sale of their structured settlements. This means that you should find out if you can sell the settlement before you try and sell the settlement. You qualified broker should be able to tell you if you are able to sell the settlement or not.

Structured settlements sales are very common among different people. Most people just look at these sales as a way to get access to instant money. Structured settlement loans are often considered very valuable investments from different people. If you are in a tight financial position, then you should definitely consider selling your settlement. For many people, these benefits often outweigh the negatives of selling. Start your search by finding a qualified lender online who specializes in structured settlements.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 1

It’s not uncommon for the recipients of a structured settlement to want to sell the payments in order to acquire a lump sum. Obviously there are many reasons why a recipient of such payments would choose to follow this route. For example, they may want to purchase a property, or perhaps they would like to invest a lump sum of money in one or other business venture. Basically, receiving a one off lump sum payment has a far higher potential to be life changing than what small monthly payments have.

Just as there are people who wish to sell structured settlements, so to are there those who view such structured settlement investments as a viable option for increasing their financial portfolio. Of course, if you choose to sell your payments then you need to keep in mind that investors won’t pay you as much as what you would otherwise have received, because just like you want to benefit from one lump sum, they want to profit as well.

In many cases the reasons for a person wanting to sell their payments can be extremely pressing, such as when they may have huge amounts of debt which they need to settle as soon as possible. However, because structured settlement investments can be so lucrative for investors, there is generally no shortage of potential buyers, and of course this is something which sellers can to a certain extent use to their own advantage. Before actually selling the payments, a seller should ideally consult with a reputable financial adviser. The advisor they choose should however not be connected to the potential buyer in any way. In other words, the financial adviser should have the seller’s best interests at heart, and they should ensure that the seller fully understands how much money they will lose should they proceed with the sale. A responsible adviser will also question a seller’s motive for wanting to sell their payments. In other words, a good adviser will make absolutely certain that the seller is aware of all the different pros and cons.

Something else to bear in mind is that structured settlement investments involve more than just a buyer and a seller, in that court approval is usually the mandatory. During the court hearing the presiding judge will also try to determine whether or not the seller has a solid understanding regarding the sale of their payments and any consequent ramifications. During this process the court will usually want to see evidence relating to the seller’s financial circumstances and financial needs. The seller will also be made aware of the fact that it is possible for them to sell only a portion of their payments rather than the entire structured settlement. This process also helps to ensure that the buyer or buyers are trustworthy and reputable and that they have no hidden agenda.

Even though there are several routes a person can take when they want to sell their structured settlement, it is always best to work through a reputable broker who specializes in structured settlement investments, in that such brokers are extremely knowledgeable with regards to the laws governing such contracts. Remember, structured settlement investments should not only benefit the buyer, but they should also benefit the seller, hence the reason for a fair agreement which takes the interests of both parties into consideration.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Jun 11

Selling Your Structured Settlement: Plan First, Sell Second

Structured settlement payments come about from a number of situations. Many are from lawsuits over a personal injury or from financial harm. Often the structured settlement will be created through the purchase of an annuity, which will guarantee the future payments. Most structured settlement payments are made monthly, although any payment period is possible.

If you are receiving or about to receive structured settlement payments over a period of time, you may be wondering if selling your payments for an immediate lump sum of cash is a good idea. Unfortunately, there is no one answer to this question as every person’s situation is different. However, there are a few things to consider when deciding on whether to sell your settlement payments or not. Here are 3 important ones.

1. If you are receiving structured settlement payments as a result of an injury that made you unable to work but that are insufficient to cover your basic living expenses, a lump sum may be your only real choice. However, you must realize that the lump sum only covers you for a period of time, after which you will be without income. If you decide to get a lump sum, you need to a) Create a strict budget each month and follow it to be sure your lump sum payment for the structured settlement lasts as long as possible and b) Allocate some of the lump sum payment for training in a profession that you can physically do or to start a home based business so when your lump sum runs out, you have sufficient income to at least cover your monthly financial needs.

2. If you don’t have to have all your structured settlement in a lump sum but are still considering selling the payments, you need to determine for yourself whether you feel the future value of your payments is worth as much as a lump sum now. You will need to get a quote for selling the payments in order to compare the two options. Your decision on this comes down to what you firmly believe inflation will be over the life of your income stream. Be careful on solely using government reported inflation numbers as the core inflation reported excludes “volatile” items like food and energy, which are very real for every one who eats, fills up the car or heats their home.

3. If you are thinking of using the lump sum to make a lucrative investment, you will need to analyze the expected (conservative) return on your investment versus the known income from your structured settlement. You may want to consult a financial adviser to help you make these calculations and comparisons.

Selling structured settlement payments can be an emotional event. Try not to let it be. Use logic and sound analysis to help you make this important financial decision. You’ll be glad you did.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Jun 11

Structured Settlement Sales: Dodge the Rip Off

Getting lump sum cash for your structured settlement shouldn’t be that difficult as there are many finance companies that profitably thrive from these transactions.  But the challenge a seller faces is knowing if what he’s getting is the right price.  There are no hard and fast rules as every structured settlement transaction is unique and no two are the same to make a good comparison.  But there are situations that raise a red flag for sellers to watch out. Here are some of them.

Step 1:  When shopping for a buyer or company who can provide cash value for your structured settlement, consider it as interviewing for an applicant to your household staff.  Remember that these people will make money from your future cash flows and offers could come between 8% and 18% less than the total value of your future cash flows discounted to their present value.  So be selective and trust your gut feel as if you are evaluating applicants to be your kid’s nanny.  If you’re not comfortable with the prospective buyer, chances are your instinct could be right.  Next please.

Step 2:  Where the settlement is a legal matter, you may need to get the relevant judge to approve the cash offer.  If the judge disapproves it, the buyer has the responsibility to offer another proposal.  Raise the red flag if the buyer is charging a service fee to give a new proposal.  Chances are the company is bogus.

Step 3:  It could be rare but if there’s an individual private investor offering cash for your structured settlement, run from him like the plague.  Making money out of your future cash flows is often possible only with large volumes of monthly cash flows aggregated from various other structured settlements which only companies can do.  This makes any offer from a single person quite spurious.

Step 4:  Be wary of investors suggesting ways to skip the legal aspect of approving the deal.  This is not only illegal, but you are opening the opportunity to get scammed.  If you’re making the decision without the benefit of legal or financial counsel, know that the only one standing between you and a scam is the judge.

In times like this, your best weapon against possible rip-offs is to not to rush to any decision without evaluating your other options.  A quick Google search will reveal hundreds of structure settlement companies.  Take your time in digging up facts of the companies you contact.  A through research is often the key to playing it safe.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


25
Jun 11

Structured Settlement Sales: Hunting For Your Buyer

Most people are not prepared for financial emergencies that suddenly pop up in their lives.  If you are someone who has been enjoying structured settlement payments, you are fortunate because you can use this to bail yourself out in such emergencies. That is, if you are wise enough to locate a company who will buy the rights for your structured settlement. And, if you are wise enough to find the “right” buyer for your structured settlement payments. If you are interested in selling your settlement, follow these steps when on the hunt for the right buyer.

Step 1: Find out if you can sell your structured settlement payments:

It is only reasonable for the potential buyer to examine your structured settlement to determine whether he can exercise the right to collect the payments. Therefore, find out if you can transfer the rights to him. In most states this is a non-issue, however why waste your time if the sale isn’t a possibility for you? The company will compute its present value to see if he can make a profit from the payments should he be given the rights to receive them. Some companies are looking for more profit than others, so shop around.

Step 2: Don’t look for a buyer in just one place.

The quickest way to search for potential buyers is by using the internet. Look for the companies that offer the best deal in terms of rates and options. There may be local buyers near you so don’t overlook them. Also consider that a small buyer may sometimes give you a better deal because of their low overhead cost. Lawyers and Insurance brokers can also be of help in locating a reputable buyer.

Step 3: Get more than a single offer.

You cannot get the best offer if you only consider one buyer. And, considering that with only slightly more effort you could have a dozen different offers to look at- why not? With two or more buyers, you can get an idea of the real prevailing price. It is not only the price either. Their rates may vary because of the options that they offer. By considering all these factors, you can get the best amount for the options that you want to get.

Step 4: Play Private Investigator.

Get a list of the past and present clients of the buyer that you have chosen. Check with these clients about their experience with this buyer. Ask if the buyer was able to fulfill his promises to the clients and the quality of service they were given. Use this buyer’s history as your gauge if you will finalize the deal.

There are still other legal matters to consider with regards to selling structured settlement rights. But by following these steps, you will be able to find the right company to sell this settlement to. After this, it will be a matter of going to the legality of the sales.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


17
Jun 11

Getting the Best Deal on Selling Your Structured Settlement

When you win a civil lawsuit, the damage settlement often comes in the form of periodic cash inflow called a structured settlement. You can also get one from a lottery win or an insurance payout.  These payments are almost always secured or guaranteed cash flows.  But some people prefer to get a lump sum cash payout and would sell the structured settlement for a discounted cash value today.   Just like securing a mortgage, selling a structured settlement is a financial transaction best left to professionals in the business.  Unless you have the skill yourself, it can be a good idea to tap into the right people to get the best structured settlement deal.  But not all have your interest in mind.  It is best to consider the following.

Step 1:  Ask your lawyer and colleagues for their input if they had dealt with structured settlement companies before and get some recommendation.  It is important to establish their legitimacy and reputation before signing on the dotted line.

Step 2:  Shop around and the best place is the internet.  Be sure that the structured settlement company has a local address and contact you can verify by calling and is registered with the Better Business Bureau.  This is often indicated by a triple B logo on its site.  In addition, companies with at least 5 years in the business often tell you they have established a reputation they need to protect.

Step 3:  Get quotes from these companies and shortlist only those that can provide the best price without the need to haggle with them. There is no obligation to accept a quote.  As a pricing guide, depending on future payment streams, typical discount rates for a structured settlement transaction to convert future cash streams into a lump sum today are usually between 8% and 15%.  Most companies have a structured settlement calculator that helps you determine the equivalent cash value of future cash inflows in your structured settlement.

Step 4:  Look for online settlement quoting companies that have a network of funders or financiers who can competitively bid for the value of your structured settlement. Bear in mind that these funders earn money by re-investing your structured settlement at the highest yields while giving the lowest possible cash value for your expected cash inflows.  It shouldn’t be difficult to spot the highest bid.

You should never accept an offer if you’re not sure.  But if the Disclosure Statement or Assignment Agreement contains a Cooling Off period, you can still change your mind and cancel the transaction in case a better one crops up.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


17
Jun 11

Selling Your Structured Settlement: Avoid the Scammers

In some cases, you simply cannot wait for the full payment so you decide to sell your structured settlement to a structured settlement company. This transaction presents favorable gains for a structured settlement company in the form of profit. If a structured settlement company offers a lump sum that is too good to be true, think twice for it might be one of the scam companies operating in your locality. Watch out for these scams to avoid losses on your part.

Signs of a Structured Settlement Company Worth Your Trust:

One characteristic of a good structured settlement company is stability. Stability is usually measured by the number of years the company has been in the business of buying structured settlements. Another characteristic is dependability. It is best to find a company who is willing to assist you and give you financial advice from the time you are about to accept a structured settlement until the time when you are ready to sell your structured settlement to them. Credibility is yet another important characteristic of a good structured settlement company. A determinant of a company’s credibility would be the number of satisfied clients they have. If they give you a lot of their past clients as references, then, most likely, you’ve found a credible company. Lastly, a good company puts customers’ needs first before business. If you think a structured settlement company does not give you a fair amount for your structured settlement, find a different company who will consider your needs.

Structured Settlements: The Laws on Selling and Buying

When structured settlements became popular, so did the concept of buying and selling structured settlements. When you decide to sell your structured settlement, the lump sum you would get from a structured settlement company will naturally be significantly lower than the total amount of your structured settlement. Selling it is tantamount to giving the company the rights to receive your future payments stated in the settlement agreement. Many states have enacted laws regulating the buying and selling of structured settlements. As a matter of fact, only four American states do not have structured settlement acts, namely, North Dakota, Vermont, Wisconsin, and Wyoming. These structured settlement protection acts would serve as your protection should you decide to sell your structured settlement for quick cash. Prior to selling structured settlement to a company, the law provides that a detailed accounting of all the fees, charges, and expenses associated with the selling be made available to the structured settlement owner. Conditions surrounding breach of contract should also be discussed to the owner in accordance with the law. Transferring the rights to the structured settlement company is also governed by law as a judicial court is tasked to always mediate the transfer proceedings to ensure that the structured settlement owner is fully aware of the pros and cons of the transfer before approving the transfer.

How to Check if the Company You Have Picked is a SCAMMER:

If the company you are considering does not possess the characteristics earlier mentioned, then most probably it is a scam. If, despite the absence of these characteristics, you are still unsure whether the company you’ve chosen is a scam, consult the authorities. You could make inquiries, either personally or via phone call, to the Better Business Bureau or the National Structured Settlements Trade Association (NSSTA).

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.


16
Jun 11

Questions and Dangers for Selling Your Structured Settlement

A structured settlement might have seemed like a good idea when you were granted your settlement for an injury or another payout. Now you’re thinking it may not have been such a wise decision. The cash comes in consistently but now you have more need for the cash to make some other investment. You may be able to sell your structured settlement and obtain the cash you need right now. What

Are The Restrictions When Selling a Structured Settlement?

Structured settlements are normally established to protect you not to restrict you. The settlements generally are considered in instances where injuries will likely call for long term care. For this reason, many states have restricted the power to sell your structured settlement for a one time lump payment. The federal government might even get involved to put a stop to the transaction in some cases. The federal regulations will normally enter into effect if the settlement is tax-free. If you break the original arrangement of the settlement it might now be categorized as taxable income instead of tax-free income.

Should You Sell Your Structured Settlement Even With These Constraints?

First, think about a very serious question. Is this really your only choice? If you can work around selling the settlement you will come out ahead financially. Second, visit with either an investment expert or financial attorney to know if your state restricts the sale of structured settlements. There is no reason to continue chasing after a buyer if you will be unable to make the sale anyway.

Could There Be Any Danger in Selling Your Settlement?

Some things you need to look out for are: Who will pay for the cost of the transaction? It might involve an attorney cutting into your payment substantially. What percentage of loss will you take? Yes, you’ll take a significant loss on the total worth of your settlement. You will need to obtain numerous bids as a way to lower the expense of the transaction and to get the highest payout when you sell your structured settlement. Let everyone know that you’re taking bids. All the companies and investors must be aware that you are taking multiple offers. This will increase the percentage of payout. Once you have received all of your offers take a moment and read them thoroughly. Watch closely for any exceptions or any areas which generate questions. Do not leave any queries you have unanswered. You have to know the details of each offer or you enhance your risk of loss.

Is The Highest Payout Always The Best Option?

While it may seem to be smart to select the offer with the highest payout, be sure you check who is paying the cost of the transaction. This might affect the bottom line quickly. Furthermore, keep in mind the financial stability of each company and their payment terms. Select the best offer based upon confidence and the amount of the payout. You will be better off consulting an attorney or a CPA before you complete the deal to sell your structured settlement. They will be qualified to establish potential risks and show you how to avoid paying excessive taxes. Keep your eyes wide open along the way and acquire all the details all the way.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.