Selling a Structured Settlement to the right company?

There are a lot of financial advisers and CFP’s who will tell you where to spend, invest, and save your money. At the end of the day most of them want to receive their fee and may or may not know what is truly in their best interest. The good thing is most of these individuals realize that if they steer you in the wrong direction then they risk losing their license and can thus get into big trouble.

When you are looking to sell off a structured settlement payment you are dealing with companies that know the importance of treating you with the utmost respect and obeying the laws to ensure that they help to facilitate a deal that gives you the money you need and the judge is okay with approving your deal.

There is a long list of companies that you can work with to trade in your payments. To transfer your pay outs we recommend the lump sum company based in Florida as they have faciltated and helped over 1,000 people in the last year to transfer their payments and have become one of the largest buyers in the entire world. The iSettlement company is also very well respected and has led the way to approve and service clients every need.

Here are some common questions you can ask when looking to sell a payment:

  • How long has the company been in business
  • Are they accredited with the BBB
  • Are they a big company
  • Can they afford to purchase my payment streams
  • Is their staff knowledgeable and friendly

Hope this helps to assist you in your future sale if you do decide to move forward.

Getting Your Life on Track

Getting your life on track can be tough for an 18 year old. Jenny was a high school graduate working part time jobs, but she wasn’t happy.

“I wanted to go to college. I was tired of working low paying jobs,” she said, “On a whim, I applied, and I got in! But I just couldn’t afford it.” Jenny was receiving a structured settlement from a playground accident when she was a kid. “One of the monkey bars I was playing on came loose. I broke my leg in two places and broke my arm. I wasn’t receiving much per month, so I was looking to receive a lump sum to help with college costs.”

Jenny contacted Einstein and we were able to set her up with the lump sum that she needed.

“I was really happy with the work that Einstein did for me. I was able to pay for college, and still had enough left to clear out my credit card debt. Thanks for everything, Einstein!

The Year You Break Away From Debt

Let this year be the one that you achieve your financial freedom. If you are currently receiving payments as a result of a lawsuit and that money is not enough to help you then you need to make a change. Enough is enough and you have to do what is in your best interest. We will gladly advise you on what we think can help you but at the end of the day it is up to yourself. Your financial freedom is ever so close but it’s important to make the sprint to get there. To achieve this goal you will need to get all of your ducks in a row.

We look forward to helping and guiding you for all of your financial needs.

Structured Settlement Secondary Market

Why is the structured settlement secondary market so different from the primary market? We can only assume the main reason to be that money is the big differentiator followed by regulation. In unregulated markets things tend to get a tad out of control. In the case of the payday loan lenders they went unregulated and started to collect ungodly amounts of interest from borrowers that broke usury laws in many states. When you look at the primary market you have financial advisors who are looking to place accident victims in a steady stream of payments that will benefit them for years to come. With the secondary market you have a bunch of salesman and money grubbing individuals who are out to deepen your pockets and theirs at the same time when you need money the most.

Is it that the settlement payments these people are receiving is not enough and thus the reason for the secondary market? We can come up with many theories but at the end of the day those looking to sell off their future payments in the secondary market are extremely glad that this market exists and they could care less the name of the company but rather the fact that they are getting what they want at the end of the day: MONEY.

The secondary market is ripe with fraudsters and scam artists but then again so is the primary market that issues these payments. Whether it’s the brokers, lawyers, expert witness in the case or anybody else who acted out of dishonesty then you can certainly know that any industry has slightly shady characters.

Cash from Structured Settlements

Most people receive a nasty surprise when they settle a lawsuit or an insurance claim. Instead of cash, they receive something called a structured settlement, which is actually an annuity, a legal agreement in which an insurance company agrees to make regular payments to a specific individual over a period of time.

That usually means a person receives a monthly payment instead of a lump sum of cash. The idea is to provide a person, such as an accident victim, with a regular source of income. The use of an annuity can also reduce a person’s tax liabilities.

The problem with structured settlements is their lack of flexibility. A structured settlement is not like a bank account; you cannot take out extra funds in an emergency, nor can you cash it out if you decide you don’t want to continue the agreement.

There are some other restrictions to structured settlements. In most cases, you cannot leave them to your heirs if you die. That means the source of income can die with the recipient. Nor are structured settlements truly tax free, because the IRS regards any money you receive in settlement payments as income. Structured settlement payments can increase your long-term income and affect your ability to receive government benefits by increasing reportable income.

How to Sell a Structured Settlement for Cash

Fortunately, there is an alternative. Many settlement agreements allow the recipient to sell the settlement for a sum of cash. You will have to check the settlement agreement to see if you have this option.

If you can sell your settlement, finding a buyer is easier than you might think. Companies like Einstein Structured Settlement can make you an offer for it online. When you contact a company like Einstein, you are under no obligation to sell the settlement. Instead, the company will offer you a cash price for the settlement.

Most experts agree that you should contact several different structured settlement buyers because different companies will offer different amounts for the settlement. Once you’ve gotten the quotes, you should sit down, compare them, and decide if it is worth your while to sell it.

A good way to do this is to add up the payments you will get from the settlement and compare it to the amount offered. If the cash amounts offered are far lower than the total of the settlement payments, it might be a good idea to keep the settlement.

If you decide that you want to keep the settlement agreement, but need some extra cash now, there is an alternative called a structured settlement loan. This is a loan in which future settlement payments are used as collateral. All or a portion of settlement payments are used to pay the loan payments and interest.

It should be noted here that many people will get a better deal on a loan if they sell the annuity for the cash, put the cash in the bank, and take out a bank loan. The bank loan (or line of credit) will usually have a lower interest rate and more flexible terms than the structured settlement loan.

Some other Reasons for Selling Structured Settlements

You should carefully consider the sale of a structured settlement because there are some limitations to these cash purchases. The biggest of these is that you will usually receive less cash than you would have if you kept the agreement in place. Generally, you will receive more cash if you simply take all the payments.

Although it should be noted that inflation will decrease the value of the settlement payments over time. Most structured settlements are not adjusted for inflation, so the payments stay the same even though the cost of living increases. That also means many structured settlement recipients would be better off selling the plan for cash and investing the cash in the stock market or an Individual Retirement Account (IRA).

If you’re planning to use your structured settlement as retirement income, you should definitely be aware of inflation. You may not get as much cash as you think because of it. Talk to a retirement planner because there are many retirement options, including tax deferred IRAs and Variable Annuities, that will pay a rate of return that beats inflation.

Another concern you need to be aware of is taxes. If you sell a settlement for cash, you will have to report that cash as income on your income tax return. That means you might have to pay income tax on that money or a higher tax rate because of it. The IRS might also reduce your income tax refund because of the structured settlement cash.

Selling a structured settlement can enable you to take control of your financial future. It can also give you the money you need to take advantage of business or investment opportunities, pay debts, or help your family. In many cases, a family can put itself in a better position by selling off a structured settlement.

One great way to do this is to use the cash from the settlement to pay off the mortgage on the family home. Another would be to purchase a rental property to use as an investment. Not only can rental properties generate additional income, but all expenses related to them are also tax deductible, so the family can reduce its tax bill.

A structured settlement isn’t always a good deal. In many cases, families and individuals will be better off with a lump sum of cash, even if they are facing financial problems. Structured settlements also make it hard for families to plan for the future.

Selling the settlement is a convenient and often sensible option that allows families and individuals to take control of their financial futures and make their own decisions. There is no need to live with a structured settlement that you no longer want when you can sell it for cash.

Structuredsettlements.typepad.com Malware Virus – John Darer

John Darer Malware

Structured Settlement Watchdog Malware

Please remember to report badware to Google when a website has been hacked. Looks like it’s time for him to change servers and IP addresses 🙂

Update: As of today it seems that John Darer has remedied the malware that was on his website but vehemently denies for some reason that his website was infected when Google confirmed this as per the image above. John as a watchdog for the industry you should be looking out for peoples best interest and admitting when you are fallible instead you decide to lie to your readers by denying that your website was infected with malware as PROVEN by Google. His website is now safe to browse again but if there are any complaints about john darer and his network of structured settlement websites please do make sure to report it as a backup to the watchdog to ensure that your computers are not infected.

The Tax Benefits of a Structured Settlement

Does the Tax man like structured settlements or not is the one hundred thousand dollar question?

A Structured settlement that will pay out in regular installments and be seen as income are favored by the government as well. This is not because your tax bill ends up being higher but rather a lower tax bill will induce you to spend more and increase your discretionary spending. Settlements are viewed in a positive light in the financial regulatory system.

Since the government spending is not only fueled by debt but also by taxes there seems to be a conundrum as to why the government would not want to increase tax installments.

The rather shocking reason for this is that they want to have less work and less assistance that is needed when a structured settlement is in place. This results in regular monthly payments and equal payment streams that would be received by investments in the equity or debt markets.

Also the longer that the government is economizing the assistance to those in need translates into a more generous effort to help reduce the tax base. A payment from a settlement continues over time and will make for a much more secure and lower risk income stream for the beneficiary.

With a lump sum payment many will have the worries as to the possible risk of financial ruin due due to the possibility of bad investment choices or spending beyond ones means. With payments spread out over time it just seems to make more logical sense to most.

With better security payments helps one to get on with their life and back to paying their bills on time. 

No wonder why the United States government and IRS approves deals every single day. Something to the tune of 300,000 a year at last count an expert industry watchdog said according to a recent report.  Does this in depth article just now mean that structured settlements are always the most viable solution for you? Sometimes yes and sometimes no. That all depends on the financial requirements that may dictate other solutions. For most americans however, regular income from such settlements fits perfectly with their lifestyle and needs.