Want Cash For Structured Settlement? Learn The Tricks, Pitfalls, And Secrets That Allow You To Get The Most Bang For Your Buck...
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Before looking at how we can use some strategies to get you the most cash for structured settlements let us review just what a structured settlement is. A structured settlement is usually an annuity or stream of income that is paid out over time because of the cash reward in a settlement or law suit. For example, you are in a car accident with a drunk driver and are awarded a large cash settlement. The insurance company asks to pay the settlement over time instead of all up front in one lump sum, meaning that you will get payments every year for the next thirty years.
Now that we know what a structured settlement is let us assume that you are the recipient of a structured settlement because of medical malpractice, personal auto injury, or workers compensation. You have probably seen the endless commercials on late night television that promise you your money and make it sound like a simple transaction. And in some ways it is, these organizations are very good at what they do, which is pay a lump sum up front for huge profits later on. They can make the process seem quick and painless, but the truth of the matter is just because the process can be quick and painless, it doesn't mean that it is a good deal.
There are some things you need to watch out for if you are interested in getting cash for your structured settlement.
The first thing you should be careful of is taxes, many settlement deals are exempt from taxes, before you even think of trading it in for a big chunk of money you should consult your lawyer or tax specialist. If there are clauses or provisions in the settlement deal that may cause taxable events or financial hardship for transferring the funds in the settlement, you should think very carefully before moving forward.
The second and most important thing to remember is to negotiate. Always negotiate. Many of the big time players who are willing to buy out your annuity will make it seem like you have no choice to take their offer and you will not do better anywhere else. Stand firm, this is your one chance to cash in on your income stream, and if you sell the annuity payment for too little you are selling yourself short and making someone else wealthy from your physical pain and hardship. It may make sense for you to bring in a third party to help you negotiate.
Third and last, look into using a structured settlement broker to help you find the best deal for you. Some people scoff at using the services of someone like this saying it is not worth the expense and you will end up with an even lower settlement, but that has not been my experience. Just so you know, I am a financial planner, not a settlement broker, but one of my clients had a giant settlement they wanted to cash in. he had tried unsuccessfully to find a deal he could stomach, until he found a broker who specialized in these kinds of transactions. Even with the broker's fee he made way more money then any offer he had gotten before and the broker steered him clear of several land mines in the final paperwork.
Whatever you do when getting cash for your structured settlement annuity make sure it is something you really want to do. You could be foregoing quite a bit of money in the future for less money today.
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