Learn about Settlements and Lump Sum payments!
If you've received a structured settlement as a result of an injury lawsuit, or gotten a lottery annuity that pays out over many years, then you may want to contact brokers for Structured Settlements. These financial speculators and venture capitalists can offer you a partial or full payment to sign over your winnings, giving you the leverage to pay bills, buy a house, or invest in a business. While you should always consult with your own attorney or financial advisor, this site can give you information about how to make the most of your settlement.
Many times it takes years to get a structured settlement judgement as the result of a lawsuit or legal proceeding. In that time, you might have bills stack up because you have been unable to work due to an injury. If this is the case with you, then a full or partial lump sum might be the perfect solution to your financial problems.
For the year 2014, the market for buying settlements and annuities has only gotten tighter, so you have options to make better money on buyouts. State and federal consumer protection laws, as well as banking laws, also provide you with different ways to receive the cash, including to a prepaid debit card, direct deposited to a bank account, or in the form of a classic paper check. Getting a cash advance on your structured settlement is not often recommended as you are going to be overpaying interest on something where you might be better off stalling your creditors until the next payment comes in. As with any financial product, or anything dealing with a bank, you should stop to consider that your payout is not going to be anywhere near the value of the actual plan. Presumably the insurance company, defendant, or other party set up the account payments, often via a court order, to ensure that your monthly needs were met, so if you are accepting offers on a financial judgment you could find yourself with no income a few years down the road. Why should you take my advice? For one, I have had several friends and relatives who got surprise windfalls and managed to "blow" through them in less than a year. And then they had nothing, and all the people they lent money to, gave gifts to, or shared expensive consumable products with, decided to bail. Suddenly these folks lost their homes, their cars, and all the stuff that was in their apartments when the locks got changed. If you don't have conservatorship on your account, and actually have the power to sign away your rights, you should know that you are a big target for people who want to trade you pennies on the dollar for the rights to your cash. These financiers aren't paying for late night ads out of the goodness of their hearts, you know.
Venture capital firms have been buying up portfolios of companies that deal in annuity payouts in this industry. The reason why should be obvious. These annuities are paying a good rate, and the groups that create and resell the portfolios are running on a good margin, which of course means that consumers are leaving a lot of money on the table in exchange for cash. Consumer financial protection rules are not always up to date in this field, and the people selling structured settlements may in fact be unsophisticated about the true value of what they are giving up. Unlike the mortgage process, where you are shown exactly what you will pay over 30 years and how loans are amortized, individuals may not be educated about the lifetime value that is being signed away in exchange for a quick buck. Much like the hard money and trust deed purchasing industry prior to the financial crisis, a sudden reversal (or crash in the annuities market) might cause serious problems for these investors.
Notes and Special Information
Special note: always consult with an attorney or trusted advisor before accepting any cash settlement. Make sure that you will be able to pay for future expenses or the taxes that may result from your transaction. You may decide that keeping your settlement unchanged is the best long-term financial strategy. No part of this site should be considered financial or legal advice, as this website is intended to be for informational purposes only. We do not endorse or recommend any service, person, or attorney mentioned on this site or its advertising..