Eliminate Debt by Selling Off Structured Settlement

Posted by on December 30, 2011 1 comment

Selling off structured settlement and using the proceeds to pay off debt

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.

Why You Should Insist On Structured Settlements?

Posted by on December 3, 2011 3 comments

What are structured settlements?

This question may have entered your mind if you are suffering from an injury caused by the negligence of another person, group, or company. Personal injury litigation remains the common route of those seeking compensation from those responsible for your injuries. In recent years, however, these settlements have emerged as a second option in personal injury claims. Structured settlements can be defined a predetermined amount of money that is given to claimants over a set period of time. A decision about the duration and nature of payment is taken by both the parties usually in presence of lawyers.

Some find it better to use this payment plan for personal injury claims. They prefer it over a lump sum payment for a variety of reasons.

  • A lump sum payment remains elusive if plaintiffs want to earn compensation through court. An estimate puts the number of cases won by plaintiffs to be as low as 10%.
  • Defendants often come up with excuses and are able to tilt the decision in their favor. A court of law relies entirely on evidence and this results in a negative outcome. It is therefore better to have something rather than nothing.
  • Sometimes the court itself agrees on granting judgments with structured settlement as the mode of payment. This is done after hearing the views of both parties and offering them time to discuss the matter with each other.
  • Out of court settlements remain the most common route of agreeing on this type of payment plan. This reduces the financial burden of litigation and offers quick processing of claims if both parties have agreed to the settlement.

This type of settlement is done with the help of an outside broker. Once all parties have agreed to the arrangement, an outside broker comes into the picture and negotiates with both parties’ lawyers. This may take a week or even a month, depending on the objections posed by the defendants or the plaintiffs, among other issues. Once a deal is signed, the defendants are legally bound to offer you the monthly, quarterly, or yearly payments. The duration of payments is also decided at this time.

Structured settlements are usually done through a life insurance company in the form of annuities. Given the workings of the insurance industry, premiums and discount rates play an important role in deciding about a settlement plan. Sometimes the plaintiffs have to wait for months before they receive a payment. You can avoid this delay by presenting a strong case to the insurance company and pursuing it with gusto. A competent lawyer can help you in completing the necessary procedures in the shortest time possible. He or she will also keep an eye on inflated values, high commission, and other tricks used by the insurance company and defendants.

It always helps to purchase structured settlements from more than one insurance company to ensure financial stability over the years. It will also protect your payments from company bankruptcies and other problems.

Darren is a financial planner who specializes in assisting individuals and families with their current financial goals and retirement planning. Specializing in annuities but also REIT’s, Darren is also familiar with life insurance planning. He enjoys writing articles on various aspects of financial planning and what you can do to protect your net worth. You can check out his latest articles on Sell Structured Insurance Settlement tips and other decisions when it comes to your life insurance polices.  Published on http://cmvlive.com/money/personal-finance/why-you-should-insist-on-structured-settlements

Structured Settlement Help

Posted by on October 19, 2011 2 comments

Structured settlements can be undone.

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.”

Annuity Investment When The Chips Are Down

Posted by on September 29, 2011 1 comment

Annuities are an investment people think of when the chips are down, according to research from a business professor at the Richard Ivey School of Business.

“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/.

Structured Settlement Annuities, Get Rich Slowly

Posted by on September 29, 2011 1 comment

Structured settlement annuities if used as a vehicle for periodic payments due to an accident, injury etc, are not get rich quick programs nor are they meant to be.

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”.

 

 

 

 

 

Factored Structured Settlements, May Be Too Risky For Most Investors

Posted by on September 26, 2011 2 comments

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.

 

 

 

 

Financial Planning – Don McNay and Wealth without Wall Street

Posted by on September 22, 2011 3 comments
Wealth Without Wall Street by Don McNay, founded a firm to help those with structured settlement money or lottery winnings, manage their finances.

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.”

Read more: http://www.kentucky.com/2011/09/19/1888167/tom-eblen-practical-financial.html#ixzz1YhaT66ae

Estate Planning – Choose advisers wisely

Posted by on September 13, 2011 2 comments

Estate planning has many facets to consider.  In laying out your estate plan, these documents should be included, according to Lisa Horvath, such as power of attorney, healthcare directives, online accounts and an authorization that gives your attorney, the authority to release information to the named successor trustee in the client’s plan.

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.

Selling Structured Settlement Mistakes

Posted by on September 11, 2011 2 comments

Mistakes in selling structured settlement

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.

Selling A Structured Settlement

Posted by on September 11, 2011 2 comments

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.