How Long Do You Wait Before Selling Structured Settlement Payments?
When you sell structured settlement payments, you have to understand the possible financial consequences that your choice may have for your future financial stability. The way you decide to sell your payments will have a significant impact on how much you can make from your annuity. Choosing a payment structure with a fixed purchase price can reduce the taxes you incur and also to reduce your payments. If you choose to sell the structured payments, there are many different methods by which this can be accomplished.
You can sell your payments to a buying company. A buying company is one that purchases structured settlement future payments from individuals and then re-issues them to beneficiaries. One of the most popular types of purchasers is the buying company from an insurance carrier because of their extensive experience in acquiring these types of payments. When choosing a buyer, you will want to do some research to ensure that you are doing business with a reputable buyer that has a good reputation.
You can sell structured settlement payments to the discount rates or annuity provider. A discount rates provider buys at discount rates and collects the payments from the individual. This company is not really buying these payments; they are buying what is known as a “security.” When you sell to a discount rate’s company, the payment amount you receive will be less than if you were to sell to a financial institution because the savings are passed along to you.
With the lump sum you receive, you can use the money to pay off bills or settle debt. Most individuals who sell to a discount rate provider receive a maximum amount of $ouses. There are some situations where the payments are more than enough to pay off the bills or satisfy the debt. In these cases, the lump sum is the better option.
The lump sum obtained will also be less than if you were to go through a financial advisor. Even with an advisor, it may take years for the account to reach a level from which you will be able to sell at a profit. You may need to wait until the rates are at their lowest point before you sell at all. In the meantime, you will not be making any profits. You could actually lose money if you wait too long.
Before you sell your structured settlement payments, make sure that the company offering you the best deal is reputable. If the company is shady or does not have a good reputation, you are not only risking the money you receive, but you are risking the chance that the company will not pay at all. You may even decide to stop accepting payments from them. A financial advisor can help you make the right decision when deciding when it is best to sell your payments.