Prolonged Annuity Payments Versus a Lump Sum Now

Investing your money

If you have been looking for ways to reduce debt so that you can manage your finances better, receiving a structured settlement annuity may seem like the break you have been waiting for you. However, there are several things that you should know before signing on the dotted line to receive your annual or monthly payments.

  1. Prolonged Process
    After you find out that you are going to be receiving annuity payments, it can still take a very long time for you to actually have them in hand. The waiting period could take months, even years before you ever see a penny of your money. The reason for this is that there are so many legalities and processes that a company must go through when doling out this type of cash. Then there’s the question of how they will report it on their taxes and so their accountants have to hold on to it for awhile. What it really comes down to, is they are dragging their feet.

  2. Small Payments
    If your settlement is coming from lottery winnings or winning a case like an auto accident, these companies will do everything in their power to not have to pay out a lot at one time. Setting up payments with you will be done in such a way that it benefits them. They are not thinking of your best interests. Sure, they may give you options of amounts and time frames but all of them are first of all beneficial to the one giving away the money. Usually, annuities are spread so thin and for so long that the payments you end up getting every year or month are so small that they barely make a difference. You may be receiving money for the next 30 years but the payments will be very small amounts.

  3. No Tax Breaks
    You will still have to pay a very large amount in taxes the following year after receiving your earnings. This is on top of what will already be taken out in order for the company to pay taxes. Yes, they will take it out of your money. And then you have to pay your own taxes out of it also.

So, what else can you do? How can you avoid these problems? You can sell your annuity. What does that mean? Well, once you know the amount that you are going to be getting, you can sell that amount to a company that will buy it for a certain price. While there may be fees and things like that involved, there are many benefits that could outweigh waiting for your yearly installments. If you choose to sell your annuity, this means several things:

  1. Immediate Payment
    Typically, When you want to sell your annuity, you don’t even have to wait to find out if you have won your case or not. If you know the amount of the settlement, you can put in an application for sale at one of these places. They will give you an offer and once you accept it, you can expect a check within days.

  2. Quick Turnaround
    The whole process can take less than two weeks once it’s started. Actually, the main waiting periods are up to you. Your application will be reviewed and an offer made, as mentioned above and then it really is up to you how long you wait to accept or deny. You can negotiate the final amount as well if you don’t mind waiting a few extra days for your payment to get to you.

  3. Lump Sum
    Selling your annuity payments means that you will receive your money in one lump sum. No more waiting year after year for your money to get to you. You can have it all right here and right now. This is extremely beneficial if you are trying to pay off medical bills, get out of debt or pay a large item.

Deciding whether or not to sell your annuity is a big choice. It really comes down to what is in the best interest of your life goals. If all you are doing is saving for nothing in particular, annuity is fine. But if you have plans to travel or live large, you’ll need all of your money as soon as you can.

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

Lottery annuity

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.

3 Reasons for Defendants to Choose Structured Settlement Annuity

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A Structured Settlement Annuity (SSA) is a tax-free, annual payment of money usually resulting from a lawsuit or insurance claim. Every settlement is different and structured to accommodate the specific needs of the individuals involved in said case. While people usually view these in the context of the plaintiff (those receiving payments), there are structured settlement annuity benefits to the defendants as well. Here are three reasons it could very well be in the best interest of both parties to come to an annuity settlement.

    1.) Success Rate: Perhaps un-success rate would be more accurate. The plaintiff is victorious in the majority of cases that go to trial (over 90%). For that reason most people on the defense side elect to try and settle outside of court (80-92% of cases by some estimates). Obviously you will be losing in the sense that you’ll have to pay something, but the total amount will often times be much less than if you leave it up to a judge/jury to award damages. Even if the plaintiff wants a lump sum most will be open to the idea because there are plenty of businesses that they can get cash for settlements almost immediately.

    2.) Reduce Cost: Lawsuits can be expensive. On average, employees that win a case against an employer will receive $150,000. Besides the outright cost of the payout though there are court fees, lawyer costs, and other expenses associated with going to trial. In the end it is usually a more cost-effective option to cut your losses from the jump and negotiate a fair Structured Settlement Annuity.

    3.) Insurance: Perhaps the most important reason to consider an SSA is the insurance implications. Depending on the situation and your provider they will sometimes cover the annuity payments for you. Obviously this will have an affect on your rates and premiums, but it will save you from having to come up with the finances on your own, or having to borrow from a bank at high interest rates.

Overall a Structured Settlement Annuity
can be beneficial to all parties involved. It should be one of the first options you look for if you’re caught on the wrong end of something like a personal injury lawsuit because of the above mentioned reasons, as well as others left out.

Sell Your Lottery Annity and Get the Money You Deserve Fast!

Lottery annuity

So you won big in the lottery but don’t want to wait for your lottery annuity to pay out. By selling your lottery annuity, you can put cash directly in your pocket without having to worry if you will be getting all of your money back.

The Temptation of the Lottery
Now, more than ever are Americans struggling with finances with 64 million people (35% of the population) admitting that they had trouble paying bills or were stuck paying off medical debt as of 2014. The average American home has around 13 debit and credit cards between its members and nearly half of U.S. families spend more than they earn every year. Between 2014 and 2015 alone, student debt rose from $1.2 trillion nationally, to $1.3 trillion dollars. Between mortgages, medical expenses, and student loans, Americans end up paying an average of $950 per year. So its no wonder why millions of Americans are lining up to buy a lottery ticket for a chance at wishing the debt away with a structured settlement annuity.

What to Do if You Win?
So how does one receive lottery winnings? Typically once the right people have been alerted they will set you up with an annuity settlement that will pay out a percentage of your winnings every month for a set number of years (usually 25 years) or payments until death. The problem with this model is that no one knows how long they have and no one knows how much longer they can live with financial problems. One option you have is to sell your annuity for cash. Generally, you won’t get as much back as you would for waiting until the annuity pays out, but that is money that you could have as cash in your pocket when you need it.

Selling Lottery Payments How it can Help

Selling an annuity settlement

Selling Structured Settlements

When you win a law suit you will be set up with a structured settlement or annuity. Settlements are not hard to come by, 80 to 92% of cases settle. Typically, these structured settlements offer small payments over a long period of time, taking most of a person’s life to be paid out in full. However, by selling a structured settlement or selling an annuity settlement you can begin receiving payments in as early as 30 days with an immediate annuity. Besides earlier payments, selling your structured settlement has other money saving benefits as well. Depending on your tax bracket, a structured settlement can save you 25 to 35% on interest income on state and federal taxes.

Selling Lottery Payments

Selling lottery payments cam be very beneficial. Instead of waiting an extended period of time to start receiving cash you can begin getting payments almost immediately. The lottery annuity pays you one large immediate payment followed by 29 annual payments, increasing by 5% for each payment.If you win a lottery payment of $50 million dollars you will likely receive an initial payment of $750,000 or more, allowing future annual payments to grow to $3.1 million.

Why Sell Your Payments?

Selling lottery payments can be a little confusing to some people. You might be wondering exactly how it can benefit you to sell your structured settlements. There are many circumstances in which you may need to get settlement money now:

  • Buying a new car
  • Purchasing a home
  • Personal and family medical bills
  • Paying off student loans
  • Paying college tuition or purchasing books for college
  • Paying off credit cards
  • Going on vacation
  • Getting out of debt
  • Starting your own business
  • Investing in your future

If any of these apply to you, don’t let waiting for your lump sum hold you back. Get cash for settlements right away by selling them to specialty finance companies.


Don’t let a slow structured settlement hold you back. Whether you have settlements from lawsuits or you’re looking into selling lottery payments, a finance company will have the answers you are looking for. If it’s time for you to get a lump sum of cash now and you’re tired of waiting, then take control of your settlement and start getting your payments quickly, on your terms.

Pros and Cons Sell Annuity Settlements For Cash

Selling an annuity settlement

Every year millions of Americans will receive structured settlement annuity payments. A few lucky winners will receive big paydays from the Mega Millions lottery jackpot, while others will settle for personal injury, wrongful death, or insurance claims.

By the end of 2013, there were more than 34 million individual deferred annuity contracts in place, adding up to $2.5 trillion. Some people will choose to sell an annuity for fast cash. So what are the structured settlement annuity benefits that stop others from selling?

Tax Incentives…

A structured settlement usually offers annual payments that are exempt from income taxes and even capital gains tax. And since most experts agree that tax rates will eventually rise, an income tax exemption will be the envy of one percenters everywhere.

Furthermore, continued eligibility for federal assistance programs is one of the biggest structured settlement annuity benefits. For Americans who depend on assistance programs, a structured settlement can disqualify them from programs they need to get by. Setting up a trust with annuity payments can avoid this issue.

So why do so many people choose to sell structured settlement payments? The most common answer: fast cash. Many people can’t afford to wait for money that is rightfully theirs.

The hard truth is that more than 40% of U.S. families spend more cash in a year than they make in income.

  • On average, Americans owe $12,000 in student loans, $8,000 on car loans, and about $70,000 on mortgage loans.
  • Most U.S. adults owe $3,761 of revolving credit each year.
  • In total, 64 million Americans (35% of the population) said they were unable to pay bills in 2014, with medical bills being the most common complaint.
  • According to The Rutter Group, 90% of accident victims use all the money from their claim within five years.

For many Americans, selling a structured settlement provides the cash they need to finally get out of a financial hole. For others, a cash payment can provide the upfront capital needed to finally buy their dream home. Most lenders require a cash down payment of up to 20% of the house price. And since the average home price in 2010 was more than $270,000, it’s easy to see why some Americans can’t wait for annual payments.

Ultimately, every American is in a totally unique situation. If you’re the recipient of a structured settlement annuity, research all your options before making any big financial decisions.