Taking Steps To Sell A Structured Settlement Payment And Then Accomplishing A Sale

By Henry Jeon

Considerations involving the need to sell a structured settlement payment are many and varied. These payments are usually the result of a settlement has been reached in a personal injury or tort lawsuit and will include such features as a payment of settlement money over a defined period of time. These sorts of settlements have grown in popularity over the last several decades.

Commonly, a structured settlement is used instead of a lump-sum payment which -- before the 1970s -- was the preferred method of paying upon settlement of a lawsuit involving personal injury or some other tort. In most structured settlements, pre-determined amounts of money are paid off over a certain length of time and in installments. Many beneficiaries of such settlements live quite nicely off them.

However, there may come a time when a recipient of a settlement needs to obtain fast or quick money in order to meet other financial obligations as a result of an emergency or some other issue. The law in most states allows for recipients of such settlements to sell off portions of their settlements in many cases in order to obtain up front money to meet emergency needs.

Think of the sale of such a payment to be like having a bird in the hand rather than waiting to try to capture two birds in the bush. Ready cash can be obtained up front rather than having to sit back and wait for money that is going to be paid out on an annual or some other sort of basis. Additionally, federal law generally doesn't require the payment of any tax on such a sale.

The fact that a structured settlement payment isn't subject to federal tax can go a long way towards making such a sale attractive, with many of these transactions taking place because of that fact. Such sales can range from several thousand dollars up past a million or more dollars. All such settlement prices depend on the structured payment and how much of it is going to be sold off.

When considering selling such a payment, the first thing to do is to check out the financial institutions or funding sources offering to buy such payments. Make sure that any funding source that is entering into negotiations for the sale of the payment is 100% reputable, is insured and also carries a bond guaranteeing that it can meet its financial obligations. These are minimum requirements.

Also, keep in mind that any such sale will tend to be at a negotiated discount rate between the recipient of the structured settlement payment and the funding source making the purchase of the payment. What this means is to be prepared to negotiate for as favorable a payment as can be obtained. Additionally, many states require the settlement recipient to obtain approval from a judge before the deal can be closed.

Certainly, there are occasions when it can sometimes make sense to sell a structured settlement payment, so take care to find a good funding source, first of all. Check the quote over carefully and decide if the amount offered will be sufficient. Once all steps between the two parties have been completed, it usually takes around 90 days before final payment can be made, so keep that in mind. - 31884

About the Author:

Why an individual might sell a structured settlement payment and how it's done can be of utmost importance when someone who has been the receiver of a sell structured settlement payments award or decision is in need of quick money or ready money.

Ask Yourself These Questions Before Choosing Annuity Insurance

By Christopher Paul

Looking for an annuity is like buying a house. You need to keep what you need in mind as you shop. Just like houses, there are many different styles of annuities and some of them fit your needs better than others do. While you might find very attractive returns, if the product isn't a good fit, it's not the best annuity for your situation.

How do you decide which one is best? You start by listing the things you find important. Don't worry about spelling or making it fancy, it's only for your eyes. It's a shopping checklist to help keep you focused on your investment needs.

When do you need the funds? If you need the money for a large purchase within a year or two, an annuity may not be the best product for your situation. Most annuities are long-term investment, although some offer a surrender period of a year or less. Just like a short-term CD, you get a slightly lower interest rate. If, however, it fits your needs, then it's the right annuity for you.

You need to ask yourself whether you want an income from the money or just want to let it sit and grow tax-deferred. If you want an income, do you need one that you'll never outlive?

For those that want an immediate annuity, an income they can't outlive, the amount of payment is the most important feature. If, however, you want a place to tax defer funds and prevent taxation of Social Security, you'll look more at the immediate interest rates.

People often need products that allow for either joint ownership or annuitization. This is particularly true of couples that depend on each other's income for survival. Check to see if the company you like offers that option before you proceed.

Are you using the annuity as part of Medicaid planning? Ask for a copy of the wording of the annuity contract and take it to your attorney helping you with the planning. In an effort to make the annuity more attractive to annuitize, some contracts allow some invasion rights. While this is good for most people, those that want the bulk of the funds turned into a liquid cash stream need to know that this does not pass Medicare guidelines.

You need to know the length of the surrender period before you purchase an annuity. No matter what your original intentions, you may find that at some point, you have to have some of the money. Often policies that offer the highest rate of return often have the longest surrender period. This becomes important information if you find you have an emergency that requires a withdrawal.

Find out if the annuity you choose allows additional deposits. As people find how easy their annuity is to manage, they often combine other investments into the annuity. If the company allows subsequent investments, it keeps their financial program simpler and limits the number of products to a few.

Know what you need and what each contract offers before you make your final decision. By narrowing the field to your requirements, you'll make the decision of an annuity purchase much easier. - 31884

About the Author:

Christopher Paul writes content for best annuity - a growing site committed to providing people with unbiased information and advice for their retirement. We provide constantly updated information on market conditions, the benefits, and the myths agents will tell you when looking for annuity insurance.

Types of annuity insurance options and finding one that fits your needs.

By Roger Mckenzie

Investors have a number of different options available to them when it comes to annuities; each with different interest rates, costs and other advantages and disadvantages. Keep reading to find out more about annuity options which you may be interested in.

Immediate Annuity: Just as the name suggests, the investor starts receiving their payout from an immediate annuity right away. The payout might continue for the life of the investor or for a specified period of time as set in the annuity contract's terms. If you withdraw money from your annuity prematurely (in the US, this is before you're 59 years and six months of age) there are tax penalties, which makes the immediate annuity an option which is largely limited to persons who are of this age or older.

Alternatively, you can receive a deferred annuity insurance in which the payouts are deferred until some specific time or date in the future. Here the principal sum is invested and is let to grow in to a tax deferred income over some time. These are an extremely common type of annuity insurance and are most preferred by people who need a tax deferred investment opportunity in order to save up for their retirement days as with a retirement annuity or even an index annuity. Of course, if you're younger than 60, this is your only option. The terms "immediate" and "deferred" only related to an annuities payment schedule. Both options are open to investors regardless of whether they choose a variable, fixed, or indexed annuity.

Fixed annuities are the most popular of any type of annuity, even more so than variable annuities. These investment provide an interest rate which is locked in, making it a safe investment. Fixed annuities are particularly popular when the stock markets are in a decline, since there are fixed annuities with interest rates as high as 8%; very good compared to bonds and CDs.

Variable annuities are the second most popular type of annuity. These investments allow investors to put their principal into the stock market or other investments. There is a higher degree of risk associated with variable annuities, though a well informed investor can exercise some influence on exactly how much risk they're exposed to.

When attempting to purchase the best annuity option, consider consulting with a professional. - 31884

About the Author:

When it comes to annuities make sure you explore all your annuity quotes online visit http://www.variableannuityquote.com for Research and annuity quotes.

Making the Right Decision On Fixed Annuities: What to Consider When Purchasing A Fixed Annuity

By Christopher Tyler

People that want the most for their investment dollars but also want a safe guaranteed investment are looking towards fixed annuities more often these days. There are a great many reasons to choose a fixed annuity over a CD. Often the rates are higher and the annuity gets tax-sheltered growth. Not all annuities are alike. When you select an annuity, shop just like you would for any other purchase. You want to buy the best annuity on the market.

Some of the items to look for in a fixed annuity are not as transparent as the interest rate. While the interest rate is a place to start, you need to look at certain specifications in the policy.

Each policy has an initial rate guarantee period. The initial rate is often quite attractive but if it doesn't have a longer lock-in period, you might be stuck with a product paying low rates. Some companies have an extended initial rate guarantee but offer a first year bonus to make the product more attractive. After the initial year, the rate applied to the subsequent years is often much lower.

Each product has a minimum guaranteed rate of return also. This is the rate that no matter what the economic conditions, the company promises is the lowest you'll ever receive. When interest rates at the bank drop below a percent, the minimum guaranteed rate becomes important.

On occasion, minimum investments become important. If you plan to remove money periodically until you deplete your policy, you'll want to avoid a fixed annuity with a penalty if the funds fall below a specific amount. If you're a smaller investor, you won't even be able to start a fixed annuity if your funds don't meet the company minimum.

Pay attention not just to the initial investment but also the amount of subsequent investments if you plan to ad a little at a time. Even if you don't think you'll add more funds, you'll probably be surprised when you realize that not only is an annuity tax-deferred, it makes your organization easier if you want to simplify your finances and narrow it down to only a couple of investments. You also name the person that you want to receive your funds if you pass away.

Surrender charges, like early withdrawal penalties are important when you invest your money. Some companies surrender period is shorter than others are. You might find an annuity that allows you to invest for one year and then remove the funds without penalty. Other products may have charges that last not just your lifetime unless you take annuity payments.

Occasionally, you'll find annuitize that don't allow your beneficiaries to receive the funds in a lump sum but also require they annuities the proceeds. If the heirs want a lump sum payment, they pay a high penalty regardless of how long you had the product before you passed. If this fits your plans for the way you want your money received by heirs, it's a huge benefit. Others, however, find the restrictions too limiting.

Even if you never plan to remove money from your annuity, it's comforting to know you have access before the end of the surrender period. The amount of penalty free withdrawal varies from company to company with some companies offering interest only and others allowing you to take as much as 10 percent per year cumulative if you don't take it in one year. Most companies offer withdrawal right somewhere between the two extremes.

Be as careful when shopping for an annuity as you are for any other major purchase. Most people don't buy the first car they see, they get competitive offers, look over all the features and then choose. Do the same thing when you buy an annuity and you'll buy the best annuity for your situation. - 31884

About the Author:

Christopher Tyler educates on the topic of fixed annuities and other investment options for retirement. As the economy has fallen into the worst recession in decades more and more investors are looking for safe options to grow their investment for retirement. Come see to learn more about the fixed annuity as a viable investment for retirement.

Getting Started With Variable Annuities

By Nita Landaverde

If you're considering a variable annuity, this article will provide you with the information you need to gain an understanding of these investments and hopefully, help you to make a good decision about these investments.

As with any annuity insurance, a variable annuity is a contractual agreement between an investor and an insurance company. The investor provides an upfront payment - either one time, or instalments.

The investor then receives payments consisting of a portion of the principal as well as the interest earned by said principal on an ongoing basis. These payments may continue for life or for a set period of time as stipulated by the contract.

With a variable annuity, you decide how to invest the money that you have placed with the insurance company. There will be a list of pre selected funds ranging from highly aggressive stocks to conservative bonds and you choose how you wish to invest.

A variable annuity provides you with similar flexibility of having your money outside of the annuity, but with the tax deferral advantages of an annuity

Variable annuities generally also include an option to convert the annuity to a fixed annuity. During the life of the annuity, the investor may choose to keep their payments invested in stocks and bonds, with the value of their investment fluctuating with the markets. Alternately, the investor can opt for a fixed interest rate if they would prefer to avoid the risks of the stock market.

You can also allocate a section of your payout to any fixed account that will render you a fixed interest rate. So even if you keep shifting your investment you need not be paying any tax on the income gains until you receive payment. In the payment phase, you could be getting your payments and gains as a lump sum or if you wish so, you could stagger it as a range of regular payments.

Generally speaking, investors do very well with a variable annuity invested in the major US markets. Though there is always some risk involved with investing, most economists and financial experts regard stocks as a solid investment which provides flexibility and tax deferrals.

Before deciding on a variable annuity, investors do need to keep in mind that there are costs associated with these annuities which can be upwards of 3%. You'll want to make sure that you understand both the costs and benefits before choosing variable annuities as a way to invest. - 31884

About the Author:

Read about annuity options and other types of annuities visit http://www.variableannuityquote.com

Reasons To Sell A Structured Settlement Payment And How It's Done

By Henry Jeon

Considerations involving the need to sell a structured settlement payment are many and varied. These payments are usually the result of a settlement has been reached in a personal injury or tort lawsuit and will include such features as a payment of settlement money over a defined period of time. These sorts of settlements have grown in popularity over the last several decades.

Commonly, a structured settlement is used instead of a lump-sum payment which -- before the'70s -- was the preferred method of paying upon settlement of a lawsuit involving personal injury or some other tort. In most structured settlements, pre-determined amounts of money are paid off over a certain length of time and in installments. Many beneficiaries of such settlements live quite nicely off them.

When it comes to the selling of structured settlement payments, people who do so usually attempt to sell a certain part of their settlement in order to meet certain emergency or near-term needs. Fortunately, there are many financial services companies that are expert in helping people sell a portion of their settlement in order to obtain needed money.

Think of the sale of such a payment to be like having a bird in the hand rather than waiting to try to capture two birds in the bush. Ready cash can be obtained up front rather than having to sit back and wait for money that is going to be paid out on an annual or some other sort of basis. Additionally, federal law generally doesn't require the payment of any tax on such a sale.

This last feature (no tax) can make putting together a deal to sell such a payment quite attractive, and many such transactions range in price from a few thousand dollars to millions of dollars. Prices depend on the amount of the structured settlement and how much of the settlement the recipient of that settlement would like to sell up front. There are a number of steps that must be taken first of all, though.

When considering selling such a payment, the first thing to do is to check out the financial institutions or funding sources offering to buy such payments. Make sure that any funding source that is entering into negotiations for the sale of the payment is 100% reputable, is insured and also carries a bond guaranteeing that it can meet its financial obligations. These are minimum requirements.

Keep in mind, also, that the sale of a structured settlement is usually at a discounted rate that is negotiated between the holder of the settlement and the institution buying the settlement. Discount rates vary by negotiation, so be prepared for a little bit of give and take. In some states, the holder of the structured payment must meet with a judge who must sign off on any deal reached.

There are certainly plenty of occasions when the need to sell structured settlement payment may arise. Some people require immediate cash or others are weary of waiting for an annuity payment. Regardless, check the financial institution or funding source out thoroughly before agreeing to any sale. And expect about 90 days lag time between sale closure and payment. - 31884

About the Author:

Why one might sell a structured settlement payment and how it's done can be important when someone who has been the receiver of a sell structured settlement payments award or decision is in need of fast cash or ready money.

Getting Ready to Sell Your Annuity Payments

By Wayne McCornwell

Pensions are sometimes something that someone is given when they win a settlement from an insurance firm or sometimes when they win a giant sum of money as a prize. But not everybody wants their money come to them in pieces. So that's when they decide to sell their annuities.

There is one gigantic advantage of selling annuity payments.

One pile Sum

The largest advantage of selling pension payments is the fact hat you get your money all in one lump sum instead of waiting on payments. You don't' have to wait for your money to come and you get it right right there when you're selling your allowance payments.

When folk are finished selling their annuity payments, they often wonder what they are intending to do with all the cash that they didn't' expect to have till later. Here are some of the best things that people can do after selling pension payments.


Pay off a Debt

Depending on the amount that they get when they are finished selling their annuity payments, they may decide to pay off a large debt that they have,eg a mortgage or a vehicle loan. This is a technique to make the money work for you, because you don't have to stress about that debt any longer

College

Another thing that people do after selling annuity payments is they choose to put it away for their children's varsity education. Since varsity is a bit expense, this is something they like getting looked after and not being made to worry about paying in the future.

Travel

A third item that people may decide to use the money one after selling pension payments is they decide to take the trip of an entire life to someplace they have always needed to go. It could be a cruise around the planet or simply to Hawaii, but they decide that they need to do something fun with the money.

Retirement

The last thing that some people decide to do with the money they have got from selling allowance payments is they decide to retire or they put the cash away for their retirement. They need to know that they're going to be taken care of in their old age and knowing the money is there will put their minds at ease.

When you have an annuity, can do is to sell your pension payments and get the money in one lump sum. That way you've got the money to do with it what you please and help you at the moment rather than having to wait for years to get the money that is coming to you. When you sell your annuity payments, there are endless possibilities as to what you can do with the cash that you are given. The items which are listed above are some examples of what folk do with the cash that they're given. What will you do with the money if you take it all in one pile sum? - 31884

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Go to Sell Annuity Payments to get free information on this product. This website will give you all of the information you need on Sell Annuity Payments along with a lot of other free information. Don't miss out on this new website if you are looking for Sell Annuity Payments.

Things To Evaluate Before Deciding on Investing in an Annuity

By Ryan N. Matthew

Most people that want a secure fixed investment look toward a CD as their ideal product. Often they don't realize there are other options just as safe but often with more benefits than the CD provides. One of these products is a fixed annuity. There are several advantages over the traditional CD. One of which, is the tax-deferred growth of the annuity. Of course, if you're young, this advantage can become quite a financial stumbling block.

The reason that the tax-benefit in the annuity isn't suitable in many cases is the same reason that young people shouldn't put every cent they have in retirement accounts. Just like other retirement accounts that receive special tax treatment, annuities have a ten percent penalty on the growth if the owner removes the funds before they reach 59 .

For those close to 59 or older, the tax-deferred growth is a wonderful opportunity. During your working years, while your income and tax base is higher, you can tuck your money away and get tax-deferred interest. Once you retire and your income drops along with your tax-base, simply remove the interest and pay lower taxes on your return.

There is a federal taxation law for fixed annuities called LIFO. That is the short way of saying last in, first out. It means that the interest is the first thing you remove from the annuity, so if you have a substantial amount of interest in the product, you may end up paying just as much. You can avoid that problem, however, by stretching your payments over several years or taking annuity payments, which receive different tax-treatment.

Depending on the financial advisor you select, you'll hear mixed messages on the use of a fixed annuity to fund an IRA or 401K rollover. The reason is the duplication of tax-deferral. While the purchase of an annuity because of it's tax-deferred basis alone would make a foolish selection, if the interest rate is higher than other fixed instruments, then it is a logical candidate to fund a tax-deferred plan. This is especially true if you have more rights to access your money in the annuity.

You also often have more liberal invasion rights with a fixed annuity than you do with a CD. Traditionally CDs allow you access only to the interest until the due date. Many fixed annuities offer that option plus the right to as much as 10 percent of the principle with no penalty. Some companies even make it cumulative if you don't use it one year.

While you can ladder your CDs, schedule them for periodic due dates, you accept a lower rate of return when you do this in two ways. The first is by using a shorter period for some of the CDs, therefore a lower rate. The other way is by breaking your money down into several smaller CDs.

It makes sense to look at fixed annuities as part of your financial plan. Just like any investment, you need to diversify and not put all your eggs in one basket, but a fixed annuity could be a very beneficial basket to use when you want a safe and secure investment. - 31884

About the Author:

Ryan N. Matthew provides the latest advice, marketnews, and facts that investors should consider before choosing the best anuity insurance for their retirement. Choosing the best annuity is a big decision and you should get all the facts, and look at all the annuity options. Come see us to learn more about annuities, or to get the best fixed annuity quote.