“In February, the Department of Labor and the Department of the Treasury issued proposed new rules aimed at giving 401(k) plan participants more options to invest in annuities that guarantee a lifetime income stream.”

But, when offered the oportunity to defer up to 25% of their account balances into an annuity that starts paying out further into retirement, such as at age 80 or 85, only about 1% of participants at those companies do so.

Apparently, there are several issues needing resolution before many people choose these longevity annuities.

To read the entire article, check out http://www3.cfo.com/article/2012/5/retirement-plans_401l-guaranteed-retirement-income-proposal-401k-defined-contribution-mercer-bridgehaven-cerico-iric-tejera.

Understanding the process of structured settlement

Structured settlement involves payment in parts which is done over a period of time through an annuity system. The victim or the family members of the deceased (in case of death) may file a case against the organization (that is responsible) for the damage done. The issue can be resolved (by the organization) by offering a structured debt settlement to the claimant. To obtain structured settlement, the claimant must drop the case that is filed against the organization. It should be done before the case is taken to the court.

Cases in which structured settlement is applicable:

• In case of serious injury, that will require long-term medical treatment.
• Inability to work due to the injury or the inability to earn the same level of money that the person used to earn before.
• In case of death of a person where his/her family members will be in need of a regular income.
• Disability caused by the injury (temporary or permanent) which may call for a long recovery period.

The benefits of structured settlement

Severe injuries or death are intensely traumatic. They can make the situation worse by calling for massive financial trouble. Structured settlement can be a solution to at least the financial problems. You can take care of the medical debts and other forms of debts (as a result of the injury) by receiving structured debt settlement. Given below are the benefits of structured settlement:

1.) Financial security can be obtained – Through the process of structured settlement, you’ll be getting regular payments over a period of time instead of one lump sum amount. It would give you a sense of financial security as a regular flow of income will come your way.

2.) Freedom from tax liability – You’d not be required to pay any tax for the money received through structured settlement. This is indeed an advantageous feature of this method.

3.) Court hassles can be avoided – Court involvement will call for a lot of costs from both the defendant’s and claimant’s end. The defendant party would often prefer to offer a structured settlement to avoid the hassles and charges of the court. It would be beneficial for you as well because you can eliminate court costs and receive a regular flow of payment. It will spare you of the need to go to the court whenever called for.

Structured settlement has its share of disadvantages as well. In case of senior citizens, this may not be a good plan due to life expectancy. It would be better for them to receive a lump sum amount with which they can live their life according to their wishes. In other cases, a lump sum amount can be more beneficial as it can be used to make more through investment or other money making medium.

Nevertheless, structured settlement can be a good way to ensure a regular flow of income. You can get rid of your debts caused by the injury with the help of this structured debt settlement.

There are plenty of people who receive structured settlements, and some of them are happy with getting
that set amount each month. But some of them decide that they aren’t happy with waiting for the money,
they want it right away.

There are a few reasons why people decide to sell their structured settlement in order to get their
money in one lump sum.

1. Money for emergency – One reason that people sell
structured settlements is that an emergency comes up,
like a needed operation. No one knows when something
might come up for themselves or for a member of their
family.

2. Money to invest – Another reason is that they want
to invest some of the money. If the stock market is in
good condition, they might choose something to invest
in with the money they get from the lump sum
settlement.

3. Money to spend – Something that people who have
received a structured settlement want to do with a
lump sum is to buy a house, or maybe take a trip.

4. Money for the future – It’s sad to say, but
sometimes people who are receiving a structured
settlement have a shorter lifespan because of their
injuries, so they want to make sure that their family
is taken care of.

No matter what people choose to do with the money they receive from selling a structured settlement, some people find that this is the right choice for them.

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.

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

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.

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

When you are in an accident, you want to make certain that you can get the biggest settlement that you can get. So here are some tips so that you can get a large structured settlement.

Make sure the evidence at the scene is secure

You want to make sure that, without a doubt, the
company knows that you are not at fault. So you want
to make sure that everything is as it was in the
accident.

Don’t make assumptions about injuries

Many injuries don’t show up until later, so you don’t
want to assume that you aren’t injured.

Keep up to date with appointments

Go to see a doctor, even if you don’t feel injured,
and make sure to keep your appointments. If you don’t
go to the doctor, then it will be harder to explain to
the insurance company that you are really hurt.

Keep track of lost wages

Make certain that you have doctor’s notes for days
that you have missed after the accident and keep track
of what you have lost in your wages.

Don’t start low in negotiations

One of the rules of thumb is that the insurance
company won’t ever go higher, but they will come down.
So don’t start at the lowest amount you’ll settle for,
but start higher. This way you have negotiating power
without losing anything.

These are just a few of the things to remember when you have been in an accident and are expecting a
settlement. If you remember these tips, they will help you to get a larger settlement from the insurance
company.

There are numerous reasons to sell a structured settlement and get a lump sum payment. There could be unexpected medical expenses or other immediate expenses. Or perhaps the money is needed to purchase a home. But whatever the reason there are things that need to be thought out before dealing with a structured settlement purchaser.

So how do you decide where you should go to so that you can sell your structured settlement and get a fair deal with it? How do you know which of the many companies or individuals would be a good fit for you?

There are a couple of places that you can go, and things that you can do before you make your decision.

Talk to friends and family

One of the first and foremost things you should do is talk to people you trust and who have gone through the same type of thing. You know that you can trust their judgment and they will be honest.

Search online

If you don’t know of anyone who has had a structured settlement and sold it, then you can do some research online about the different places that you can go to. You may be able to find people who have gone there and were satisfied with the results.

If you have decided to sell your structured settlement, be sure to do your homework and see where you will get the best offer and deal. When you are well informed, you will be able to make the best decision that will be right for you. Do not be afraid to get second opinions and to look around to see what is available.

And, as usual, don’t do anything that involves a great deal of money without contacting your financial adviser or attorney. They may have the information that you need while you are looking for the right structured settlement buyer.

One of the hottest topics in the annuity industry is the income rider. These are also referred to as living benefit riders. These particular devices can be somewhat complex. Stan the annuity man is going to discuss income riders.

Fasten Your Seatbelts, It’s Going to Be a Bumpy Year

Sure, U.S. stocks sank at various parts of the year (2011), including the period after the debt downgrade. But a late-year rally left major averages about where they began, as if the year was placid, not full of panic.

Last week, stocks fell 0.6% leaving the Dow Jones Industrial Average up 5.5% on the year. The Nasdaq Composite closed the year down 1.8%, and the Standard & Poor’s 500-stock index was flat (actually off 0.003%).

Predicting what 2012′s surprises will be is no easy task. Last year’s Sunday Journal outlook warned of rising interest rates and falling bond prices. But the experts were confounded: U.S. government bonds continued to rally.

We did get some predictions correct, such as anticipating China’s ability to rein in inflation without causing a severe economic downturn. It’s not clear whether Chinese leaders will continue to have such success in 2012, however.

Read more about some possible surprises for 2012 and beyond, based on views of some leading investors and analysts here: http://online.wsj.com/article/SB10001424052970204720204577128990068112940.html

Looking forward for the coming year and hoping for something better than 2011, in Financial Planning.

Financial advisers look ahead to 2012 and they discuss potential investment strategies, red flags and more.

This year has been characterized by wild daily fluctuations in the markets as investors reacted to various bits of good (Europe has solved its debt crisis!) and bad (Europe has not solved its debt crisis!) economic news.

But much like a roller coaster, the markets ended the year about where they started. The S&P 500 ended the year up 0.4 percent while the Dow Jones industrial average was up 5.5 percent. To shed more light on what the next 12 months might look like, we turned to a handful of money managers and financial advisers in Charlotte and the Triangle. Each answered a series of questions about investing strategies, economic indicators to watch in the months ahead and what they’ve learned from the global economic crisis.

Although it should go without saying, we’ll say it anyway: None of this advice is foolproof. Investors should do their own research, stay diversified and assess their own appetite for risk.

Read more here: http://www.charlotteobserver.com/2011/12/31/2887468/financial-advisers-look-ahead.html#storylink=cpy

Compensation for My Personal Injury

If a personal injury attorney determines that you do, indeed, have a valid personal injury case, then you will be entitled to damages.

ORLANDO, FL, December 31, 2011 /24-7PressRelease/ — If a personal injury attorney determines that you do, indeed, have a valid personal injury case, then you will be entitled to damages. Damages are basically the expenses or losses you have incurred due to the negligence of the other person and may included both economic and non-economic factors. An economic expense or damage would be the cost of doctor visits, while a non-economic damage would be pain and suffering as that cannot be actually measured or assigned a cost like a doctor’s visit can. The damages to which you will be entitled all depend on the injuries you suffered and the circumstances of your injuries (i.e. if the defendant shows malice or reckless disregard for your safety).

Personal Injury Damages

The following is a comprehensive list of the damages available in personal injury claims. Please keep in mind that you will not necessarily be entitled to all of the damages listed below, but more likely, you will receive some combination of the damages:

- Present and future medical expenses

- Present and future lost wages

- Household services (the cost of hiring someone to maintain the plaintiff’s house during recovery)

- Mental anguish

- Loss of consortium (loss of the benefits of a relationship because of the accident or injury)

- Loss of enjoyment of life

- Pain and suffering

- Permanent disability

- Disfigurement

- Funeral expenses in the event of wrongful death

Settling a Personal Injury Case

Personal injury cases are settled either in a formal lawsuit or, more commonly, through an informal settlement (a negotiation between the plaintiff and defendant). When the verdict or negotiation is reached, the compensation will be awarded. Typically, minor to moderate injury cases are compensated with a lump sum payment, while more severe injury cases are often settled with a structured settlement. There are some benefits to structured settlements such as:

- Structured settlements are often tax-free income because they are usually in the form of annuities or U.S. Treasure Securities, which are not taxed at the state or federal level.

- Structured settlement payments are made over time, so the injured receives an income for several years to a lifetime.

- Often the injured can schedule the payments to best suit his or her needs.

If you feel you may have a personal injury case and live in the Orlando, Florida area, please visit the website of The Law Offices of Michael V. Barszcz, M.D., J.D. today to schedule a confidential consultation or to learn more about personal injury law at www.themdjd.com.

This article appeared here at:  http://world.einnews.com/247pr/254976

Nowadays, there are many people who receive structured settlements as a consequence of a financial arrangement reached after a legal action or a personal injury lawsuit. This financial agreement will include payment of dollars throughout a stipulated period of time and this makes the structured settlements grow in popularity over the past few decades. Being in debt and staying in debt are both harassing experiences and therefore you need to look for ways in which you can get out of the debt cycle. Selling off your structured debt settlements is one worthy way of getting immediate cash to pay back your creditors. If you’re not aware of the ways in which you can seek debt relief by selling off structured settlements, here are some steps.

• Get in touch with a trustworthy buyer: The first step that you need to take is to look for a buyer who will be ready to purchase the structured settlement from you. N this case, you have to shop around among various buyers and make sure that you choose the buyer who can provide you with a lump sum amount of cash in lieu of the structured settlement. In case you ultimately work with an authentic company, you can expect some valuable advice regarding the maximum amount that you can turn into cash in order to repay your revolving credit card debt. You should also bear a strong drive to make this entire process successful.
• Compare the amount you’ll sell and repay: The next step that you have to take is to calculate the total amount of debt that you owe to your credit card debtors. Unless you know this amount, it is impossible for you to decide the amount that you will sell off to the structured settlement buyer. Make sure that you sell off the exact amount that you need to pay back to your creditors and not anything more than that. If you can store some more of it, you may not have to seek the help of professional debt relief companies to repay your debt. You can adopt this same process to put an end to all your financial woes. Restrict your selling so as to be able to make use of it in the near future.
• Start repaying the debt soon: As soon as you get the lump sum amount of money from the structured settlement buyer, you should start repaying your credit card debts as soon as possible. Credit card debts always have a negative impact on your credit score and therefore you need to make sure that you delete them as fast as is humanly possible for you. Don’t distribute the proceeds among other sources as using it for taking financial moves is usually appreciated.

Therefore, when you’re drowning in a sea of credit card debt and you don’t want to take help of a professional agent to get out of debt, you should try selling off your structured settlements. Take the steps mentioned above and then use the money to repay your high interest debt.

What are structured settlements?

Just found this article on how to be a better lawyer.  This was interesting, but what was most interesting was #4, “Make sure you are aware that structured settlements can be undone.”   This is what this site is all about.

A structured settlement or even an annuity that is purchased for financial planning purposes, can be great tools.  According to Hank Didier  “history has shown us that our clients can and will sell them if their overall settlement plan is inflexible as things change over time.”   It’s well known that many people end up selling their annuity to get their structured settlement money quickly in times of need, like emergencies.  And they end up trading quite a bit of the money that they would have received, had they waited for the periodic payments, in exchange for getting out their money fast.

The reason that he brings this up is “Because this often happens at a great loss”, therefore he tells his fellow lawyers that “we must help our clients look to options that have the flexibility to allow them to adapt financially over time as situations may change.”

If structured settlement make sense to the client’s situation, “then consider using both recurring and lump sum payments over time that provide for the unexpected. By doing this, you are helping to minimize the likelihood that your clients may consider approaching a high-discount rate factoring company to sell their structured settlement for ‘cash now’.”

This is great advice for both the attorney and the person who could possibly be awarded a structured settlement or in the financial planning realm, someone who is thinking of using annuities as part of their plan for the future.

But whatever the case, individuals should consult with their own lawyers, accountants or financial planners.  This, is exactly how he ends his article, click here to read more, “Also, explain to your clients that if they ever do run into trouble, they should call you or their structured settlement professional for help, as you can help them find the right solution while protecting them from predatory factoring companies.”

“Alessandro Previtero, an expert in behavioural finance and financial decision making, examined annuities versus lump-sum payments, widely considered the two most popular types of retirement plans. Over a six-year period from 2002 to 2008, he surveyed 100,000 retirees with defined-benefit pension plans.

He found that whether retirees chose lump-sum payments or annuities was tied to how well the stock market was performing.”

So it appears that if the markets have been down for the past 12 months, annuities became more of a first choice for retirees.  But, the reverse happens if the markets are up, then lump sum payments were preferred.

“People have a strong tendency to think that what has happened will continue to happen,” he says. “I call it myopic because people only look at very short-term trends.”

Of course, investing in an annuity people receive a guaranteed, regular income for life.  But, even if this sounds simple, there are many things to consider before buying an annuity.

For more relevant information on annuities and other financial topics, such as the article “When Stocks Stumble, Investors Turn To Annuities” at http://www.theglobeandmail.com/.

Because of the difficulty in getting out structured settlement money on a whim, such as, I want a new car, a cruise would be nice or whatever emergency you could think up, structured settlement annuities are a way to “get rich slowly”.  Sometimes it is better, than being able to cash in your stocks, mutual funds or any other investment.

“The financial analogy is that having all your money in a savings or checking account is like having food in the refrigerator. Putting money in a mutual fund or certificate of deposit, where it takes some effort (and sometimes penalties and tax consequences) to cash it in, is similar to driving to the store two miles away. A structured settlement is like the 25-mile drive for food. You have to do a lot of work to sell it and take a huge financial hit when you do.

It is better just to hang onto the structured settlement and stay disciplined, just like it is better to stay on a diet.

There is something similar to a structured settlement called an immediate annuity. It pays income for a person’s life, just like a defined benefit pension plan. Although people seem to like lifetime income from a retirement plan, a Smart Money article stated what I long suspected: Few people buy them on their own.”

For more information on structured settlement annuities, read Don McNay’s article “Don’t Run Out Of Money Before You Run Out Of Time”.

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.

Wealth Without Wall Street by Don McNay, Common Sense approach to money management.

Financial Planning Can Be Based Purely on Common Sense.

Today, one information industry has emerged, which has as it’s backbone, common sense, money management to give  the average person information about these types of strategies.

Wealth Without Wall Street by Don McNay, award winning financial columnist, Huffington Post contributor and founder of McNay Settlement Group which is a structured settlement firm that provides to injury victims and lottery winners, financial services.  This is a service that many who have come in to large settlements need to help manage and conserve their money.   “It’s about taking control of your finances and your life.”  McNay said.

Structured settlement money, if the recipient has sold their settlement for a lump sum, can, and does, for many, disappear quickly.

“McNay said he has learned how to explain things simply after years of working with accident victims, many of whom have little education and many financial problems. Plus, he and his own family have made a lot of mistakes over the years.

For example, McNay said, he became a successful broker in the 1980s and splurged on all the trappings — a Mercedes-Benz, a big house and a fancy office in downtown Lexington. Then he lost it all through a complicated real estate investment he didn’t understand. He had to dig himself out of debt.

The book tells several other painful stories that taught McNay lessons. “It’s embarrassing,” he said, “but it’s real life.”

Here is a sample of McNay’s advice:

Avoid credit cards: McNay said most of the pushback to his book has come from readers who say credit cards can be great tools when managed properly. But he avoids them because he doesn’t want to be like too many Americans and let credit cards become a debt trap. McNay, who said he has always struggled with his weight, compares credit cards to keeping fattening food out of his house; if it’s there, he will eat it.

Work for yourself: Not everyone is cut out to own their own business, but if you are, do it. It’s hard work, but it gives you more control over your life and future.

Get rich slowly: To McNay, that means don’t spend more money than you make. Avoid debt. Save through conservative investments. Consult an attorney when necessary. Have a will and life insurance to protect your assets. Not only does this make you richer, it will remove a lot of stress. “It takes power away from those who can control you,” he said.

Move your money from a big bank to a small one: Wall Street has so much power, McNay said, because so much of Americans’ money is invested in big banks. They were behind most of the risky activities that tanked the economy. Big banks also make only 28 percent of small-business loans, while small banks, defined as those with less than $1 billion in assets, make 34 percent.”

“A lot of this really is common sense, and it’s about balancing power in your favor,” McNay said. “These are things that could spark a revolution.”

Here is the most important aspect of your estate planning laid out in the article in the Monterey Herald:

“Planning is complex and it seems to become more so every day. Just remember, make a plan, review it on a regular basis with your attorney and choose wise advisers to help along the way. ”

These documents cover everything,  from someone to speak for you  if you are unable in a medical situation to accessing your online financial accounts.

To read the whole article, click here.

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.

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.