| |
| |
| CLICK TO GET BACK TO INDEX STRUCTURED SETTLEMENTS INFORMATION | |
|
|
|
Annuity Transfer - What Are the Risks
Many people who know in the back of their minds that they got the possibility to transform a monthly payment or annuity long term payments into a big lump sum and by that to relieve some temporarily financial problems, or need to buy a new car or a house or help their children and so forth are tempted to exercise this process into action. Although it is a very natural feeling and sometimes even a real life need or deep inner quest for power and control, it is not in their best financial interest to say the least. It is no wonder that the U.S federal laws encourage long term payments in both cases like Structured settlements and lottery winnings. There are many good reasons for that and I'm going to spell them out as clear as I can. - In some countries around the world it is legal to pay for lottery winning in one lump sum. Experience shows many of these people lose most or all of their money in a few years Time, due to the following reasons: - Ordinary people who get into their possession a very large sum of money don't really know how to manage their treasure or how to invest it wisely, they are not prepared for it and they are overwhelmed with a delusion of over abundance of wealth, they become totally careless on how and on what they spend their money. - Even if they invest their money, they go to high risk speculative investments as they try to get high yields. Instead of going for a much solid and safer, "widows & orphans" type of investment portfolio. Neither do they go for the golden middle way in between of a mixed portfolio. They don't use investments advisers or financial consultants. - They become over generous with their family and friends, they buy their children homes, cars or any other materialistic requests, they "lend " money to a friend in need... - They listen to shrewd business people who talk them into investing into all kinds of business adventures that seems to them very profitable but in a short while turn into total failures and the money is gone. - All kind of addictive behaviors like betting horse races or going to play the roulette in the casino are now intensified with the feeling of power and wealth, it might drive the person to gamble high sums of money as if there is no tomorrow. - Believe it or not but criminal elements might engage in putting pressure to extort monies from the overnight rich poor guy. They might threaten to harm his family etc' - Charity institutions start to call all day and night asking for donations to a very noble causes, they even send some slick reps to convince him to donate money. - His own children, some times his spouse becomes very greedy and exert emotional pressure to give them more and more money. In some cases the sudden riches literally ruined the families. As I have shown you above, getting a large lump sum of money might be a risky thing, this is In addition to the fact that you are loosing a lot of money which was Tax free, that alone might be a difference of anywhere between 35% - 65% , add to it the profits of the fund who bought the annuity from you and you are loosing big time. It is not recommended for an injured or a disabled person, to transform the whole Structured Settlement long term payments into one big lump sum or you might find yourself one day without the money and facing high medical expenses and other bills you cannot afford. MBA - International Trade & Finance - Heriot-Watt University. Bsc. Computers and Information Systems - Long Island University - C.W Post Campus. Married with two Children. http://annuity-structured-settlements.blogspot.com/
MORE RESOURCES:
Imperial Finance & Trading, LLC Employees Participate in Health Fair - Business Wire (press release)
Structured-Settlements - Google News |
 |
|
|
RELATED ARTICLES
A Revolutionary Fundraising Opportunity -- Life Settlements Amid fundraisers' growing concerns about the current charitable giving climate, dampened by the erratic stock market and shaky economy, a new fundraising opportunity has emerged - Life Settlements.What is a Life Settlement? A Life Settlement is the sale of an existing life insurance policy for a lump sum of cash that is more than the cash surrender value. Class Action Lawsuits First of all, let me say that anyone who has been in any way hurt or injured by any other party and settled through a class action lawsuit, disregard this article. I am more interested in the little frivolous lawsuits that award pitiful amounts to offended parties who most likely had no idea they were offended. Investing in Structured Settlements Often some derelict will be awarded some huge amount of money from a noble company due to a run away jury in a Kangaroo Court. Since many times the company paying the money out agrees on a structured over time settlement, the plaintiff of course is a lowly human and has lots of desires for riches and he has little if any cranial capacity to understand the enormous gift the courts have grated him as our nation turns in to a socialist quagmire of re-distributing wealth to those who do not deserve it. The Target Capital Structure Firms can choose whatever mix of debt and equity they desire to finance their assets, subject to the willingness of investors to provide such funds. And, as we shall see, there exist many different mixes of debt and equity, or capital structures - in some firms, such as Chrysler Corporation, debt accounts for more than 70 percent of the financing, while other firms, such as Microsoft, have little or no debt. The Cost of Not Having Money The self-esteem factor of not having enough money is underestimated. You know what I mean don't you? The agony of financially struggling and the ecstasy of financial abundance are dramatically different moments in a person's life. Structured Settlements Offer Advantages over Lump-Sum Payments A structured settlement, which offers injury victims cash payments through a long-term annuity as compensation for their damages and medical expenses, offer a number of possible advantages over payment in a lump sum. While the lump sum payment is the traditional way for responsible parties to pay accident claims, the structured settlement offers payments over the span of an agreed-upon period of time. If This Describes You, Dont Cash out Your Annuity There are companies that purchase future payments. Personal injury settlements are often structured to pay out over time. Should You Sell Your Structured Settlement? The courts have just awarded you a settlement in the amount of $1.3 million dollars for injuries you sustained while using the Widget Corporation's product. Consider a Structured Settlement? Structured settlements have been around for a long time however their popularity has steadily increased over the past 6 years. In 1999 only 7% of insurance settlements that were under $7,000 were completed as structured settlements. Surviving High Debt States Are you more likely to have more debt according to what state you live in? In a recent report done by Experian on the debt averages per state, the answer is yes! The report, compiled from approximately 3 million consumers nationwide, shows that the North East states of New Hampshire, Connecticut and Rhode Island have the highest average overall debt in the nation of $16,845, $15,314 and $14,643. The report measures overall debt of a consumer; everything present on a credit report, including credit cards and installment debts but excluding mortgage debt. Structured Settlement - Guaranteed Income for those with Disabilities Up until twenty years ago, anyone who won a lawsuit as a result of a claim involving worker's compensation, wrongful death or accident had to accept a lump sum payment as their compensation. The payment would be intended to be invested, with the beneficiary living off of the proceeds for as long as their recovery was expected to take. Keeping the Lawsuit End in Mind 2 key points to stay focused on, as you are settling your lawsuit; a quick and fair settlement and consideration for current and future needs. The process of settling a lawsuit can be a tedious and mysterious event. Lucky Have you ever looked around and wondered how everyone is buying houses? Are they really doing that much better than you are? Maybe. Maybe not. Making Backwards Choices I was reading this past week about a woman who lost 170 lbs in 9 months by eating backwards. She had breakfast for dinner and dinner for breakfast. The Cash Now Question If you have ever been in a bind for cash you know the stress, the weight of not being able to pay your bills. In these desperate times, desperate measures are often taken. Annuity Transfer - What Are the Risks Many people who know in the back of their minds that they got the possibility to transform a monthly payment or annuity long term payments into a big lump sum and by that to relieve some temporarily financial problems, or need to buy a new car or a house or help their children and so forth are tempted to exercise this process into action. Although it is a very natural feeling and sometimes even a real life need or deep inner quest for power and control, it is not in their best financial interest to say the least. Cash For Structured Settlements - The Smart Way For most people when they buy a house it is considered their life's largest deal. In some cases of structured settlements the compensation and financial considerations for a persons life duration and the total present value of the settlement can reach few millions of dollars. Structured Settlements - Should You Sell Yours? In recent years, it has become more common for victims of accidental injury who accept a settlement from the at-fault party to accept a structured settlement instead of a lump-sum payment. With a structured settlement, the injured party receives payments over an agreed-upon length of time - five years, ten years, or even a lifetime, rather than receiving payment up front in a lump sum. Structured Settlements Are Like Ants Ants are powerful creatures. The powerful ant legs are able to lift 20 times their body weight, and run the equivalent of a man running as fast as a racehorse. What is a Structured Settlement A Structured Settlement is an agreement between a personal injury victim ( a Plaintiff ) and an Insurance company ( the Defendant )to compensate the Plaintiff by the defendant with long term periodicpayments instead of a single cash lump sum.Payments can be tailored to each individual plaintiffs needs, to help meet expenses such as on-going medical and living expenses, education, children needs & support etc' The fixed annuity payments are tax-free to the claimant, a cost-of-living adjustment (COLA) feature is available, that can help offset the effects of inflation over time, payments can continue as long as the claimant lives thus providing him the maximum benefits.
|
| HOME MORTGAGE HOME MORTGAGE GUIDE MORTGAGE REFINANCE |
| Index | Sitemap
TOS | PRIVACY | Disclaimer |Copyright © 2007 Paulo Daniel
domainsdaniel.com |
