Quest for yield fuels interest in risky investment vehicle

Many people are looking for an alternative investment opportunity, other than stocks, bonds, and definitely no CDs or savings accounts.  These types of investments are either very risky in today’s investment climate or they don’t yield enough to even cover the cost of living increases.

These investors are discovering a vehicle in which to put their cash, based on annuites awarded in wrongful-death or injury lawsuits that are being sold as factored structured settlements.

With this product, an investor is purchasing the right to the structured settlement money awarded to a victim or his or her family members in the form of a fixed annuity.

At a time when 5 year certifcates of deposit may yeild a return of, perhaps 2%, the 7% yield on these products certainly seems like something to look into now.

“It’s not exactly easy to get this at first glance, and it’s hard to explain the business in an elevator conversation,” said Matt Bracy, general counsel of Settlement Capital Corp. “Our typical investors are sophisticated, have investigated this a bit and are represented by counsel.”

Read more about this on Investment News.

Hope you didn't make a mistake in selling your structured settlement.

Mistakes in Selling Structured Settlements

When people are selling their structured settlements,
there are some common mistakes that they make. These
are explained below, and will help to keep you from
making them.

Know What You Need Financially

It’s a common misconception that when you sell your settlement, you have to sell all of it. This isn’t true. You can sell just part of it, and still have money coming in each month.

Which Buyer Offers The Most?

The people who offer the most amount of money aren’t always the best choice. They may offer the most just to get the contract, and then start making changes. Be sure to look into all the possibilities and check the buyers before you choose them.

You Will Probably Not Get Your Money Overnight

No matter what the buyer says, don’t believe that the closing is going to be fast. You first need to understand the FAST means different things to different people. If you plan your finances around that, you are going to find yourself in financial trouble. Allow for at least a month for the closing to happen,  companies who buy structured settlements must abide by the Structured Settlement Protection Act within the State where the recipient resides. In most states this process takes an average of 60 days, in some states it may take up to 120 days.  So expect to get your structured settlement money, not as quickly as you probably would like, but in a fairly reasonable period of time.

When you have safeguarded yourself against making these mistakes, you will find that the process will be a lot less stressful and that things will go smoother. Depending on what type of settlement you have had, you have enough stress in your life. You do not need more because of mistakes that could have been avoided.

Make sure you contact your financial adviser, whoever that might be (your accountant, attorney, etc.) even if you end up following your own council, you will at least, get professional opinions before taking the big step to selling a structured settlement.

Steps For Selling A Structured Settlement

You were awarded structured settlement money released in periodic payments, and after a few years you have decided to sell it and exchange it for one lump sum. What do you do now? Well, the following are some steps that you should take so that you make the best decision. This will take you through the first part in selling your structured settlement.

1. The first thing you will want to do is to figure out what your financial needs now, present and future.  You will want to talk to an attorney or a financial advisor.

2. The next thing to do will be to get in touch with
the provider of your payments, and find out the amount
left, the number of payments left, and your structured
settlement’s terms. Also get all of the contract
information so that you can give it to the buyer.

3. Figure out how much of your settlement you want to
sell. If you sell payments that will be coming shortly
after you sell, you will be offered more money than
those that are coming in the future.

4. Find a reputable structured settlement buyer and
make certain that you are comfortable with them.

5. Get quotes from different buyers, and weigh all
factors before making a final decision. These factors
include comfort level, experience, and reputation, to
name a few.

6. Finally, you will sign a contract with the buyer.
Make certain that you have your attorney read over the
contract before you sign anything.

You have chosen a buyer for your structured settlement
and you are wondering what the rest of the steps are.
Now we’ll take you through the rest of the process so
that you know what you should do to make the process
as easy as possible.

1. Once you have chosen your buyer, you will need to
provide the buyer with some information. The quicker
you gather the information, the less time it will
take, but the process can last anywhere from two to
fourteen days.

2. After everything is in the buyer’s hands, this is a
good time to ask them what about the underwriting
process and how it works. Beware if the buyer says it
will be a short processing time.

3. Once the underwriting process is done, the buyer
will give it to a judge to review. Ask your attorney
if you should appear, and if it’s in your best
interests. Find out from the buyer what the costs are
and who will be responsible to pay them.

4. If your request is approved, the buyer will give
you the money.

The things that you may need to provide are the
following:

Release/court judgment/settlement agreement
The contract from the payment provider or insurance company
Annuity policy Bank statement or stub to verify payment
Your own personal information, which could include a state issued ID or driver’s license.
Copy of divorce decree or marriage license (if it applies)
Any documents discharging a bankruptcy (if it
applies)
Information about your lawyer

Remember this is just a set of guidelines, and each situation is unique.

Structured Annuity Settlement

Author: Brian Sibet

What is structured settlement?

This is a term generally used in insurance settlement. Insurance settlements are normally one time settlements given to the affected party or the claimant. The structured Annuity settlement (also called a ‘Structured settlement’) can be called as an extension of the benefits over a longer period of time. In other words, the victim gets his or her structured settlement money in a fixed amount periodically instead of getting the money in one lump sum. Such periodical income would normally last till he fully recovers and is able to take up his normal work.

It is said that the concept of structured settlement was first practiced in Canada in 1970. Later several other countries resorted to this procedure. Considering the advantage of this form of payment of compensation to the accident victims, several countries passed laws to legalize the Structured Annuity Settlement. This type of structured settlement is also called as ‘periodic payment judgment’. The Annuity is decided depending on the nature of injury, time normally taken to fully recover, type of immobility of the victim, the status of the victim, etc.

Structured Annuity settlement Vs one time settlement

In one time settlement, the victim has to suit his budget to the compensation received. This is particularly difficult when the victim is immobilized for longer duration of time. The victim will have to manage the medical expenses, domestic expenses, etc. within the compensation received and there is likelihood of the funds depleting. Instead, under the Structured Annuity settlement, the victim gets the compensation for a longer duration. He is assured of some periodical income till he recovers. With this amount, the victim can maintain his family, pay children’s school fees, the expenses towards food, medical expenses, etc. As a result, the victim’s daily life is not affected. Now this type of settlement is becoming more and more popular.

How to claim structured Annuity settlement?

There are several financial agencies and attorneys who are specialized in such cases. They will guide the claimant about the procedure to be followed in claiming the amount. Of course, they will charge a small amount as their consultation fee.

Article Source: http://www.articlesbase.com/insurance-articles/structured-annuity-settlement-2521343.html

About the Author

Brian Sibet also writes about Retirement Planning and Annuities including Lump Sum Annuity and Sell Structured Insurance Settlement

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Saying goodbye to negative credit report data and landing up in having to pay your over due charges should increase the possibility of loan authorization and far better interest rate. In bad credit report remedial you could make sure which you prove which you can manage your bills and credit responsibility. SN:1S0LVRMCS

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Your Money and Assets, What Do You Want To Do With Them?

The 5 steps everyone should take to eliminate a lot of the problems in settling your estate, whether you have heirs or not, is set out in this article,  5 Estate Planning Moves For Those Without Heirs, By David Sterman, dated Friday, April 15, 2011

This is something most of us don’t want to leave to chance or a toss of the dice.  If you’ve worked hard to gain the things you have, doesn’t it make sense to set up your estate so that it goes where you want it to, when you are no longer here.

1. First and foremost, establish a will. Even if you have no spouse or children, there are still assets to be distributed, your wishes concerning your funeral, and other estate matters, to be settled.
2. Power of attorney. Is it possible you may be incapacitated in some way? Of course, there is, even if we don’t like to think about it, “Time and chance happen to us all”. This is a tremendous responsibility for whoever takes on this job for you. And you need to make sure he/she is capable of making the types of decisions that are required.
3. Beneficiaries. Now is the time to draw up a list of beneficiaries, including charities. Decide how you want your assets divided among them.
4. Simplify and Update your will. A good rule of thumb, is to look over your will every year, update if necessary, and have it re-notarized every 5 years, even if you haven’t made major changes.
5. Your needs and assets change over time. Regular assessments of your need may result in being able to distribute funds that you will not need going forward. For instance, you are able to give up to $13,000 to friends or family without tax liability on their part, this may help to simplify settling the estate.

These are things we don’t like to think about, but if you do, you may find that it gives you peace of mind, knowing that everything will be taken care of exactly the way you wish.

To read the original article click here…