How to Sell Structured Settlement Payments
Selling structured settlement payments is a profitable business, but not one that should be started without proper information. Structured settlements are basically an unsecured form of a pension product, structured to give an individual an immediate cash income. Also, many individuals who win the lottery and obtain their payment as a structured annuity, instead of receiving one lump sum, also receive their payment as an unsecured annuity.
It is necessary to understand the present value of payments, in order to understand how to sell structured settlement payments. The present value of a settlement payment is the amount of money an individual would receive from selling the settlement, when it would be converted into cash today. Present value may be defined as the actual cash value of a settlement, not taking depreciation into account. It is important to understand the present value of a structured settlement payment in order to determine the best way to sell structured settlement payments. Here are some ways to determine the present value of a structured settlement payment:
To calculate the present value of a structured settlement payment, a hypothetical lump sum payment is compared to the present value of the settlement payments. The comparison is based on the current price of commodities like stocks, bonds, futures and commodities like gold and silver, all of which have a value that can be determined by taking into consideration the present value of their prices. The lump sum amount of the settlement payment is then compared to the current market value of each commodity.
The present value of the settlement payment is compared to the future value of the same settlement payment. A comparison of the two will determine the present value of the settlement payment. The future value of the settlement payment is the amount of money an individual would receive from selling the settlement payment, when it is converted into cash in the future. If the lump sum received from the settlement payment was worth $100 million at the time of settlement, the future value of this payment would be approximately $9 million. This means that if an individual had a twenty-year life expectancy, the amount of money they would receive by selling the settlement would be about twenty-nine years at that time, or about $100 thousand a year. at present value.
These values can help determine the value of a lump sum payment to an individual or a structured settlement payment, but it is important to note that no two settlements are exactly alike. and therefore, these values do not always apply to all settlements. The values of these payments can also change after the lump sum has been paid.
In summary, the present value of a settlement payment can be determined by taking into consideration the current value of each settlement payment, the future value of the same settlement payment, and comparing the two. Once you understand how to sell structured settlement payments, you can determine whether to sell the settlement payments to an individual or a company that will buy them. In either case, the future value of the payments will also be of value to you.