Frustrated with the low interest rates available on conventional investments? Looking for a different way to make money? Interested in a better way to maximize returns at the lowest possible risk?
If so, consider buying structured settlements.
A structured settlement occurs when a plaintiff in a personal injury lawsuit (usually) is awarded a large sum of money for their injuries. Because the defendant usually can’t pony up that kind of cash in a hurry, he buys an annuity from an insurance company. This allows the plaintiff to get a certain number of payments of a fixed amount over a period of time.
But, sometimes, the annuitant needs a lump sum of cash up front, usually for medical expenses or some other financial emergency. When this happens, s/he may sell some or all of the payments to which she has been given the annuity. This is called a structured settlement factoring transaction, and here’s where you come in. Why buy such a thing?
Return on Investment. Structured settlement annuitants who are looking to sell need cash fast, and so are willing to accept a much smaller lump sum than the combined amount of all their payments. The discount rate – which you use to determine what you will pay the seller in cash – can get up to the double digits. This sets you up for an enormous rate of return over time, provided you have the ability to wait for the payments.
Steady Payments. Since the annuity payments are coming from an insurance company, the risk that you won’t get the payments you have bought is pretty low. As long as the insurer stays in business, you’re set.
Recessionary Economy. In the current economy, people are facing all sorts of financial difficulties, and these are what motivate sellers of structured settlements. Loss of a job, spouse’s loss of job, impending foreclosure, a need to go back to school, or medical expenses for the annuitant or a family member, are all reasons that an annuitant might be looking to sell his structured settlement at a deep discount.
What Buyers Should Know. This isn’t a risk-free investment for you, either. You’ll need cash to make the payment. Since this is a highly regulated transaction – nearly every state requires prospective sellers to get financial advice, and to wait out a “cooling off” period – you’ll need legal help, and there’s always the risk the seller could change his mind, or that the court might balk, before the deal is finalized. But even one successful deal might make it all worth the trouble.
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.
