To Sell Or Not To Sell, That Is The Question | Annuity Calculator

Selling a structured settlement is not something to be approached lightly. Without knowledge of the advantages and disadvantages of such a transaction the seller may not get the best offer. When all factors are taken into account what may have seemed like a disadvantage may actually be an advantage. When making the decision to sell a structured settlement or annuity having the ability to look long term is essential. To do that a person has to look at not just the future payments but also their entire financial situation.

By having funds available immediately you would be able to pay off long term debts that are gaining in interest. By paying off your debt early you are not only removing the interest payments you?re potentially saving thousands of dollars and removing long term financial burdens. This allows for the freedom to stop spending and start saving

Even though there is security in knowing that a guaranteed sum is coming, it is not the same as having the funds readily available. The security of having cash on hand can provide true peace of mind during an emergency. Knowing that the money is coming is not as big a comfort as knowing that the problem has been handled..

One of the strongest advantages of a structured settlement is that it protects the owner from poor investments because they are protected from a loss of value. This protection is a double edge sword because while you are protected from a loss in value you may lose the chance to investment the money in more profitable investment opportunities. Having a lifetime pay out might not be has desirable as a large lump sum that can provide a larger return.

To determine whether selling your structured settlement annuity is the right option it is important to look at the offer from the structured settlement factoring company closely to see what discount rate and fees have been applied. It pays to shop around to get an offer that is in your best interest since not all companies charge the same discount rate. It is also important to verify whether the savings you receive from paying off your debt are higher than the amount of future income you lose by taking a lump sum payment.

Selling all or part of a structured settlement annuity will reduce the amount if not eliminate your guaranteed future payments. However potential payments are little consolation when an immediate need for cash arises such as unexpected medical expenses.

There are many advantages and disadvantages to selling a structured annuity settlement. As we?ve stated this decision is based on your particular circumstance.

Jason Sendaula is a freelance writer for Rescue Capital, a specialty finance firm that purchases structured settlements and annuities for a cash lump sum. To learn more about the services they provide visit their website at http://www.rescuecapital.com/

Jason holds a BA in Journalism from Temple University as well as a MBA from Drexel University.

frome ezine articles

Source: http://annuity-calculator.org/to-sell-or-not-to-sell-that-is-the-question/

enterprise assumption sugarland sara bareilles martha stewart autism sams