Debt Got You Down? There’s An Easy Way To Turn Your Junk Into Cash

March 30, 2016 Finance Tips

We’ve all heard the news. The American economy is not as strong as it once was, and that former strength might never return. The average U.S. household with debt carries $129,579 in total debt, with an average of $15,355 in credit card debt alone. To make the debt crisis worse, the average American household is paying a total of $6,658 in interest per year. If you’ve fallen behind on debt payments or are having trouble making your monthly payments, what can you do? One easy solution might lie in getting a cash loan for unwanted possessions such as jewelry or other precious metal accessories.

Selling gold to a precious metals dealer is becoming an increasingly common way for U.S. households to reduce their overall debt or simply generate a quick influx of cash. Just keep in mind that some gold items are purer — and more valuable ? than others are. Pure gold is considered 24 karat, or 24k. Think of it as a 24-slice pie with each slice representing a single karat. Therefore, a gold necklace that has an ounce of 10k gold has less than half the gold of a necklace with an ounce of 24k gold. Gold-based transactions at pawnbrokers have long been a common transaction, and the majority of pawnbrokers surveyed reported a three to five percent increase in overall business in recent years.

Collateral loans, AKA pawn loans, remain the core of pawnbrokers? businesses, with over 80 percent of pawnbrokers reporting that pawn loans are the most popular transactions. The most common items that pawnbrokers purchase are precious metal jewelry and accessories. If you are looking to sell your gold or any other jewelry, pawnbrokers still remain the way to go.

Today’s economy isn’t a friendly one for most Americans, including the wealthy. With the cost of living outpacing income growth over the past 12 years, it’s easy to see why more and more households are getting a cash loan to help pay their monthly expenses. American consumers’ average pawn loan increased from $80 in 2008 to $150 in 2011. If your household needs quick cash, selling your gold to a licensed high end pawn shop might be just the thing you need to get through tough times.

Determining the Business Valuation of a Company Can be Complicated

March 29, 2016 Finance Tips

Updated:1/26/2022

If you’re buying a business, you’ll need to figure out the value of it. Whether you’re doing healthcare compensation valuations or looking at the price of inventory in a closed shop, the value of your business is impacted by a number of factors.

The business evaluation process can be complicated, so it is important that you work with professionals as you go through it. A lawyer and an accountant can help you with any questions you have. As you figure out how to properly value a company, you’ll need to use different formulas for different aspects. If you do so correctly, you’ll get an accurate number and know how much to pay for the business.

How do you value a private company? While it might seem like something that could be changed with emotions, there is actually a business appraisal formula that you follow. This gives you an objective number. From there, emotion could come into play as you negotiate the purchase. But when it comes to the actual monetary value of the business, there will be a single correct answer.

You still remember the day you decided to buy your current business. You had stopped by your favorite gift boutique only to discover that it was closed. In the middle of the day. On a Wednesday.
At first, you were just going to return to your car and try to find the gift you were looking for somewhere else, but something made you go back to the front door of the closed store. After looking inside, you saw the owner near the back of the store. A couple of quick taps on the window helped you catch her attention. When she realized it was you she came running to the front door and let you in. She locked the door again once you were inside and explained the problem. With two small children at home the business owner no longer had the energy or enthusiasm to keep her gift boutique going. When you had tapped on the front door she was actually in back working on an inventory list. She had decided to sell and stay home with her children.

And almost as quickly as she could tell you her story, you got the idea that you would be the buyer. You had owned another business before, but had sold it when your own daughter was born. Now that your daughter had her driver’s license and was in high school you again had the time to devote to being a business owner again. And what better opportunity than a gift boutique where you loved to shop any way?
It took a few months to finalize the purchase, but before you knew it you were the new owner of your favorite shopping spot. Luckily, you were able to get two separate business valuations that made sense and that were acceptable to the previous owner.
The Business Valuation Process Helps Investors Understand the Value of a Company

Buying and selling a business is very different from buying and selling a home. The purchase of a business, for example, requires a business valuation report. And while some factors that are used to determine the value of a business may seem cut and dry, other factors can take a little longer to determine.
In the case of an already established gift boutique, for instance, a business valuation analysis can be tricky. While it might be tempting to simply look at a comparables valuation, this analysis may not tell the whole story. What if the gift boutique you are buying has an enormous inventory that has already been paid for by the current owner? What if the location of that gift boutique is in a strip mall that has tripled in size in the last five years? What if valuation income approach is misleading because the previous owner was often closed when her customers thought she would be open?
The list of questions could go on and on. And, every question could shed a little different light on what the value of the business should or could be.
Owning a business can mean financial opportunity. It can also, however, mean financial ruin if you overpay for the purchase. Finding the most reliable business valuation from the most reliable firm can help you make sure that you pay the correct price for any business that you purchase.
Because business valuation is never an absolute number, it is important to consult with a firm that is known for their experience and reliability.

What Options You’ll Have When You Sell Your Annuity Payment

March 22, 2016 Finance Tips

If you or someone you know has ever been lucky enough to win the lottery then you are probably aware that receiving your winnings is a bit different than what most people imagine. In fact, most lottery winners don’t receive lump sum payments at all, but rather something known an annuity settlement which mean they get small amounts each month for several years. If this sounds a bit unfair that’s because it is. The good news for people like you or your friends or family members who have won the lottery is that there is a way that you can avoid waiting on an annuity settlement. That process involves selling your annuity payments to get the lump sum lottery winnings you deserve. Here are just a few of ways you can change your life by selling your annuity settlement:

1. Ending The Hold Debt Has On You – Right now, millions of Americans are plagued with debt. In fact, the average American household carries over $15,000 in credit card debt alone and over $100,000 in total debt. Student loans are also on the climb and grew from $1.21 trillion to 1.3 trillion in just the twelve months between 2014 and 2015. When you sell your annuity settlement and receive a lump sum payout instead of small monthly payments you have the opportunity to finally get out from under the debt that has been weighing you down for decades.

2. Making Investments – Another benefit of selling your annuity settlement is the ability to make your winnings last with investments. Many lottery winners even take the time to meet with financial planners to find out what their best investments should be. Not only do you have the opportunity to invest your winnings in stocks, but you can also make investments in your own future by purchasing a home. Today, it is standard for mortgage lenders to require a cash down payment of anywhere from 5-20% of the sale price, and you can provide that when you sell your annuity payment!

3. Making Once In A Lifetime Purchases – Selling your structured settlement to receive lump sum lottery winnings can allow you pay off your debt, invest in your future, and also to make once in a lifetime purchases. Maybe you have always wanted to visit the country of your family’s heritage in a place like Greece or Italy, but haven’t had the funds to do so. Or perhaps you have the desire to take a few months of work to see parts of the United States you’ve never seen before. Whatever you decide to do, having the lump sum lottery winnings you deserve can help you achieve your goal.

The three ideas above are just a few of the ways that you can spend the money you get from selling your annuity payment. The final choice is ultimately yours.

Valuation of Business and How to Get it

March 7, 2016 Finance Tips

What Valuation Is
The valuation of banks is when an estimation is taken of its market value. The aggregate risk, time and income are all taken into account. In order to complete an accurate valuation of banks, one must have a very good knowledge of valuation techniques as well as of the banking industry itself and it’s specific characteristics of valuation. Let’s focus on the four most used valuation techniques to help you get a better understanding of how valuation of banks is handled and completed.

What Information is Need for Valuation
Finding out a small business valuation model is an economic analysis exercise. The financial information of a company provides important data to ensure the process. The income statements and the balance sheet are probably the most important pieces of information that you will need to help you understand the value of a business. In order to do a correct job of valuing a business, three to five years of income statements and balance sheets should be compared. A business valuation firm will make it its priority to comb through these statements and find out exactly what is needed from them in order to place a value on the business. Of course, that value could change but if you are considering a merger or buying out a company, that will help you to get a better idea of what you are getting into.

There is business valuation services available if you do not think that this is something you should be looking into yourself. Having an expert take care of the financial side of things is a very good idea if you do not understand valuation techniques and how to properly use them in order to find out what you need to know about a business. As long as you give them permission, a firm can acquire any information they think will be pertinent to getting you a correct value of a business that you are looking at.

What Valuation Techniques Are
These are the methods used in order to find out the value of a business.

Discounted Cash Flow Analysis
This is the best way to find out a company’s value. There are two ways within this method to approach valuation: the adjusted present value and the weight average cost of capital. In order to find out both, one must calculate the amount of cash flow that a company has as well as the net value of the cash flow.

Comparable Transaction Method
For this method, one must look into past transactions that have already taken place within the industry. The transactions that should be scrutinized are the one that are similar to whatever transaction is about to take place. A key valuation parameter is what is being looked for within this technique.

Multiples Method
A lot of times there is just simply not enough information to determine a valuation using the other methods. If this is the case, you can figure out a valuation based on the market valuation multiples. This method is done by looking at other multiples and what they have been used for within other companies in the same industry.

Market Valuation
This is the last of the commonly used methods of valuation of banks and other companies. This method says that 9in a free market, the effect of demand and supply on the value of the company needs to be within certain balance parameters. This often happens when the buyers do not want to pay such a high amount and the sellers do not want to receive a lower amount. The value is them compared to the corresponding commercial entity.

While there are other methods involved in business valuation, these are the most commonly used because they can give the most accurate information. It may seem odd that the results of a valuation would depend on your need for the business but business value is not black and white or absolute. It’s basically just an attempt to measure what the business is worth by looking at how you measure the business and under what circumstances the business was measured. These are known as the standards of value and the premise of value. Once these elements are understood, the value of the business is much easier to estimate.

Thinking of Starting a Business? Selling a Structured Settlement Can Be a Great Way to Get That Initial Capital

March 3, 2016 Finance Tips

Many people constantly look for options which would bring a better life for them and their families. While starting and running a business is not for everyone, it can be a great way to turn a great idea into a profitable venture and earn your living while being your own boss. However, there is always one initial hurdle — raising the starting capital to kick things off in style. For a successful launch of a business, there needs to be a bulk amount of money available to the entrepreneur at the very outset, which can be used to set up the building blocks of a successful business.

This is indeed the hurdle which forces many great ideas to remain ideas and never become successful businesses. If you have a great business idea but are struggling to raise cash to take things off the right way, there is one interesting option you can explore — selling a structured settlement.

It might be a demoralizing scenario where you find yourself with a winning business idea but no cash to start things off. However, if you have just won a structured settlement as the outcome of a lawsuit or lottery, you might be in a better position than you think. While annuity settlements like the Mega Millions pay out a little cash every month for a number of years, you can easily consider selling a structured settlement and get settlement money now. This gets you all your money up front, saves you some money in the way of taxes and fees, and provides you with nice starting capital which you can use to get your fresh business idea off the ground.

Why Selling A Structured Settlement Makes Sense

First and foremost, you need to consider how easy selling your annuity is. There are a number of companies that buy structured settlements and provide cash up front, and all you need to do is find the right people to do business with. The whole process involves very little time, effort or red tape, and it is likely that it will be expedited to get you your money as fast as possible.

Compared with other forms of raising capital like business loans, selling a structured settlement does not put you in debt. Nor does it require you to expose yourself to the usual paraphernalia that comes with applying and qualifying for business loans. It is a clean, smooth process designed to bring your capital to your pocket in as little time as possible.

Another important reason why you might want to get settlement cash now is that you get to save on certain costs that way. Annuity payments are usually subject to income taxes, and the annual fee on an annuity can go up to 3%. These costs can be avoided if you decide to cash in on your settlement and get your money up front.

In short, if you are currently receiving monthly payments from a structured settlement and want to start your business as soon as you possibly can, choosing to sell your structured settlement can be a great way to achieve this. Due to the speed, simplicity and advantages of the process, you can have the capital you need and the peace of mind which often fosters good decision-making — a particularly crucial element when you are just about to start a business.

How Do I Decide Whether or Not to Sell an Annuity?

March 1, 2016 Finance Tips

The task of watching the credit card balances is exhausting. Just as you think that you are reaching a point where you are going to significantly reduce your debt, an unexpected expense comes up and you are again scrambling to find a card that has room for another significant charge.
The fact that over 40% of American families spend more than they earn is an indicator that many of those families may be playing the credit card juggling game. The game that includes months of making progress on overwhelming debt, and then suddenly switching to a single day significant charge for a major home repair or car maintenance fee that can not be avoided.
For families who are trying to break this crippling cycle of debt, selling an annuity is a simple decision. Even for families who are not in financial crisis, the decision to sell an annuity can still be a simple one. Whether you find yourself in the fortunate situation of deciding to sell an annuity because of a company buyout option, an unexpected lottery winning, or as a result of a court settlement case, the decision to take the money up front is often the correct choice.
Selling an Annuity as a Way to Reduce or Eliminate Debt Is a Wise Decision
Ways to reduce debt are often difficult to find. While families can spend months cutting costs and eliminating unnecessary expenses, these same families can be blindsided by an unexpected home repair bill or emergency medical expense. Taking cash for an annuity settlement can be the perfect way to eliminate high interest credit card charges. Once the high interest fees are eliminated, families can move on to a more responsible and accountable budget plan. When you are in the middle of paying costly interest fees, however, the debt recovery process can seem impossible. Consider the overwhelming financial situations of many American families:

20% Americans between the ages of 18 and 24 describe themselves as being in ?debt hardship.?
The average U.S. home has 13 credit card payments.
The average U.S. home is paying a total of $6,658 in interest every single year.
Only 37.4% of credit card holders pay their full balance every month.
As many as 15.9% of credit card holders pay only the minimum balance every month.
American consumers owe a combined $11.91 trillion in debt.

The Decision to Sell an Annuity with Lottery Winnings Is a Step In the Right Direction
Lottery winners do not have a great track record when it comes to the wise use of their winnings. Deciding to take fancy trips and make extravagant automobile purchases, and ignoring large credit card debt, can lead to the complete waste of what should have been a great financial opportunity.
Consider this devastating finding about American consumers who find themselves in debt. The most current research indicates that consumers grossly underreport and underestimate how much debt they have. As of 2013, for example, actual credit card debt that was reported by lenders was 155% greater than borrower-reported balances. Denying debt is dangerous. What starts as simple white lies to a spouse can become significant problems as interest rates continue to increase and multiply.
Lottery winners should face all of the debt that they have and begin by paying off the largest interest loans and charges. If you still have winnings left after you pay down the first debt, move to the next highest interest loan or credit card. Showing restraint and paying down your debt will make a larger impact on your life than buying a new house or taking a dream vacation.
Taking Cash for a Company Buy Out May Provide the Best Results
Even the most financially sound families and individuals may decide to sell an annuity instead of taking monthly payments over an extended period of time. Neither life nor a company’s financial solvency is definite. A person who is healthy today may not be around to receive and enjoy the lengthy payments from a long term scheduled agreement. A company that is offering to buy out its top employers today may find itself in financial crisis in five years.
The decision to take advantage of a cash opportunity is what makes the difference between financial success and financial ruin.

Your Structured Lawsuit Settlement Could be Costing You Thousands The Facts About Taxes

March 1, 2016 Finance Tips

What American consumers don’t know about debt could be costing them thousands every year. Delaying payment or defaulting on student loans, car loans, and mortgage payments could be hurting their credit more than they realize. Recently, studies indicated that American adults are carrying more than $10 trillion in debt. In fact, if 1 trillion one-dollar bills were stacked on top of one another, it would reach over 60,000 miles high, or roughly one-fourth of the way to the moon. Americans owe 10 times more than that in credit and loans, and the amount of our debt continues to grow.

Who has money to save for retirement? Most Americans carry more than $3,500 in credit debt, and some studies estimate that figure to be much higher. About four out of every 10 Americans reports that they spend more than they earn, and they may not realize that making the minimum payments on their credit cards could mean that they are paying double or triple their original debt. Credit cards can be tricky, and once people start using them for cash, to pay bills, or to make car payments, they may find themselves in a position where the only financial solution is to continue using those cards.

In the event of a lawsuit settlement, many people find themselves having to choose between a structured settlement and a lump sum payout. Understandably, they want to avoid the taxes that can come with a lump sum, but what they probably don’t realize is that structured settlement fees and administrative costs could be costing them just as much. For example, if a medical malpractice suit settles for $750,000. If the administrative fee for the structured settlement arrangement is as low as 3% each year, medical malpractice victims could pay more than $20,000 for that service.

Studies repeatedly show that most lawsuit winners — and lottery winners — completely spend their money within five years. Looking for cash for annuity now? You are not alone: $20,000 could pay off credit card debt, pay down a mortgage, or even help start a small business. The startup cost for a small business is usually $30,000 or more; finding cash for annuity now could mean that a new business owner has cash on hand for computer equipment, phone installation, office rental, and down payments for commercial properties.

Getting cash for annuity now is possible, and there are finance companies that specialize in helping lawsuit winners with selling an annuity settlement. Real estate prices are on the rise, but finding that dream home is still a possibility. Not being able to pay the down payment because cash is tied up in a structured settlement? Many Americans see selling fixed annuities and starting a business as the pathway away from a lifestyle of credit card debt, and if cash is invested wisely, they may be absolutely correct.

Identifying Financial Risk Analysis

February 15, 2016 Finance Tips

Key ratio analysis of financial statements

New business owner? Have a great product, terrific sales team, fabulous location–or better yet, a combination of all three? Congratulations!

About 400,000 new businesses start up each year in the United States. And no matter how full of optimism one might be to begin with, the fact is that 25% of new businesses close after the first year, 36% after the second, and so on, with 50% of new businesses lasting only four years.

So why is that? Well, studies show that 30% of those failures can be attributed to lack of managerial experience. This means asset and money management, things like granting credit, borrowing too much, expanding too quickly, investing hastily. Another 11% fail because they don’t understand the line of goods and services: they don’t carry enough inventory, don’t know their suppliers, and can’t live up to what they promise consumers.

But don’t lose hope if you find this could happen to you. You can learn how to manage your current assets carefully; you can improve budgeting and planning and safeguard your assets.

Besides management skills, you can increase your understanding of financial data analysis. It’s crucial to know how to assess your financial information and identify financial risk analysis. Business profitability ratios, financial statement trend analysis, and the interpretation of financial statements are all key to the continued improvement and success of your company.

Sometimes that’s hard to keep up with when you’re also responsible for handling day-to-day tasks in the workplace. Who has time to identify financial risk analysis when customers are calling and orders are waiting to be filled? How can you research financial performance analysis tools or compute profit margin ratio s when you’re busy recruiting someone to answer the phone and fill the orders? It can be hectic, starting a new business!

That’s why it pays to invest in getting some financial advice. There are companies whose job it is to help your company make more money and stay in business. Financial advisors help you understand and interpret your company’s financial data and make sound decisions based on that information. They have budgeting and planning software to share, financial data analysis tips for beginners, and experience identifying financial risk analysis.

Got a Settlement on Your Hands? We Got Answers

January 29, 2016 Finance Tips

When someone receives a settlement, they often have many questions. However, the court system typically does not do a great job of answering these questions and explaining your rights before accepting fixed payments. People want to know: can I sell my structured settlement? Do other people do that? What can I even do with the money to make it last?

These kinds of questions are not only important to know, but they are what a responsible receiver of a settlement asks. They are the step towards securing a financial future for yourself and being well-educations on your rights as a settlement recipient helps you do just that.

Before you receive an influx of cash for annuity now that can potentially change your life for the better, there are a few important details that you should know.

Here are 2 common questions people ask (and should know) about their structured settlements.

Am I able to sell my structured settlement for a lump sum?
Typically, it depends on where you live. In New Hampshire, Wisconsin, and Washington, D.C., there are no Structured Settlement Protection Acts, which means that residents in those states aren’t allowed to sell their structured settlements. However, if you live anywhere else in the country, you have the right to sell your structured settlement for a huge lump sum. Talk about fast cash!

What can I do with the money that I get from the lump sum I receive?
Honestly, this ball is entirely in your court. There’s absolutely no limit when it comes to how you spend your lump sum, and however you choose to spend it can impact your life tremendously. Did you know that almost 76% of Americans are living from paycheck to paycheck? Additionally, the average credit card balance in the United States is almost $7,200. With the fast cash for settlements you receive, you can pay off any and all of your outstanding credit card bills and eliminate debt!

Regardless of what led to the settlement in the first place, settlement recipients are extremely fortunate. What will you do with your cash for annuity now? Let us know in the comments below.

What to Do With Your Structured Settlement Annuity

January 26, 2016 Finance Tips

If you are currently receiving a structured settlement annuity either because you won the lottery, a lawsuit or through a life insurance payout, you need to decide if you want to keep collecting the money monthly or if you would rather get cash for your settlement. There are a number of factors that go into making this decision regardless of whether you received $150,000 from an employer, are getting part of the over $3.5 billion paid out in medical malpractice suits in 2013, or you won $1 million in the lottery.

When you choose an immediate annuity, you can usually get your money is about a month. However, you have to choose the right one in order to offset the amount you will be charged in fees and taxes. For example, if you are under the age of 59 1/2, then your annuity will be charged 10% for early withdrawal. However, if you choose to wait to withdraw the funds, you must begin receiving payments by the time you are 70 1/2.

In addition, annual fees can be anywhere from 2% to 7% on top of the taxes that need to be paid. Taxes are usually between 25% and 35% depending upon your tax bracket, but cannot exceed 35% of the annual income, regardless of the amount of money made. This may be why almost 50% of lottery winners are still working and why nearly 70% of all lottery winners lose their money in five years or less, regardless if the amount of money they won was $500 million or $1 million. One of the best ways to determine what is right for you and your money is to use a special sell structured settlement calculator.

Once you sell your structured settlements, you are free to do whatever you want with the money. You can use it to get out of debt, buy a car or pay off your mortgage. However, if you do not want to spend the money from your structured settlement annuity all at once, there is another option. Another way to keep your structured settlement annuity safe is by turning into a deferred annuity rather than getting the money right away. While these are low risk, you do have to wait for 15 to 20- years in order to withdraw funds. However, the rate of return greatly exceeds other low-risk options. For example, if a 60-year-old man has a $100,000 deferred annuity and waits until he is 85 years old to collect, then he is guaranteed $4,000 a month in income.

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Author: Finance Tips