Consider your Future Investments

First, you’ll want to consider whether or not you have other investments that will pay off in the future, such as IRAs or other interest-bearing retirement accounts. If you already have that “nest egg” sitting and waiting for use later in life, then selling your annuity will feel like less of a burden and more of a strategic decision to control your debt. However, if your annuity is your sole source of retirement income you will need to either replace this source of income by the time you reach retirement or keep the annuity and face your debts head on today.

Tackle High-Interest Items First

Once you sell your annuity, you’ll want to get rid of your high-interest debts first. Start with store and branded credit cards, which usually carry incredibly high interest rates and can quickly cause you grief if you use them without paying them off. Once your credit card debts are paid, immediately cancel your cards and cut them up to ensure you won’t find yourself in the same hole in the future. Any necessary purchases can be made in cash, and if you can’t afford it – you can’t afford it.

Thinking About Cashing Out to Invest? Think Again

Many individuals visit Rapid Cash Funding with the hopes of cashing out their structured settlement or annuity so that they can invest the money in stocks, bonds or other items. However, it’s important to consider that no matter what the investment, buying in is a risk and can actually end up losing you money down the road. Selling your annuity to get rid of high-interest burdens is very useful, but selling to invest isn’t the greatest idea – even if the investment is a “sure thing”.

Use your Annuity as a Last Resort

One final note is that your annuity should be considered as a last resort, once other options have been exhausted. An annuity is an investment that is guaranteed to pay off later in life; it’s worth selling in times of crisis or to get rid of debts and that’s about it. If you can’t get your head above water any other way, get in touch with us here at Rapid Cash Funding and we’ll share how we can help.

If you have an annuity or structured settlement that you’re considering selling, give the team here at Rapid Cash Funding a call. You can reach us at 1-800-PAID-NOW (1-800-724-3669), where one of our team members will be happy to answer your questions and help determine what your structured settlement or annuity is worth today. We look forward to speaking with you!

To the IRS, the IRS Comes First

Regardless of how much you owe them, the Internal Revenue Service has the law and the power of the government on their side, and they will be happy to jail you for tax evasion if the circumstances make your case worth pursuing. The IRS considers any money that you make or assets that you own theirs until your back taxes are paid; this makes selling a structured settlement a helpful tactic as they will likely seize it should they come after you anyway.

Selling to Avoid Borrowing

Some individuals feel compelled to borrow money to pay off their IRS bill, but again this isn’t the greatest idea as it tends to dig the hole deeper than it was before. If you can’t afford the tax bill you probably can’t afford the loan, and with interest added on top you will end up further in debt than you were when you started. If you have a fairly sizeable structured settlement, you can simply sell it off to get enough cash to pay your tax bill without having to worry about incurring additional debt.

Spend the Rest of your Settlement Carefully

One piece of advice that we can share from our experience in the structured settlement buying business is to spend the rest of the cash that you receive from the sale carefully. Many individuals see the large chunk of cash as a windfall, but in truth it is money that you would have received on a regular basis anyway and should be used for bills, debt and investments. Pay your tax bill, and if there is anything left over from your structured settlement invest it or save it for a rainy day.

If you have questions about the structured settlement sales process, or if you would like to find out how much lump-sum cash you can receive for your settlement, get in touch with the team at Rapid Cash Funding today. You can reach us at your convenience at 1-800-PAID-NOW (1-800-724-3669) – we’re happy to provide you with an honest estimate of what your structured settlement is worth.

Tip 1: Ask your Spouse and Family

Life insurance is one of the financial items that can affect the future of a family, so before selling your life insurance it’s worth sitting the family down to explain the benefits and to hear their feedback. Spousal input is incredibly important as with most life insurance policies, the spouse is the main benefactor. Discuss the options for the money that is generated from the life insurance sale, and demonstrate just how much better of a long-term financial position the family will be in by leveraging that cash into better investments.

Tip 2: Check your Current and Future Financial Situation

If you’re thinking about selling off your life insurance policy to put the cash to better use today, it’s worth spending some time to address your current and future financial situation. Address any high-interest outstanding debts first, such as credit cards and payday loans, as these will be a huge drain on your finances thanks to heavy interest charges. Then, determine what other payments can be taken out by using the cash from the life insurance policy; items like student loans, car payments and mortgages should be next on the list. Finally, if your family is relatively debt free you can leverage your life insurance policy into financial investments that will help to build your financial portfolio and overall wealth.

Tip 3: Balance and Build your Investment Portfolio

If you already have an investment portfolio which is performing well, you may want to sell your life insurance in order to generate more capital which can then be reinvested. It makes little sense to have underperforming assets like a life insurance policy tied up for decades when the rest of your investments are helping to leave your family in a better financial position.

Here at Rapid Cash Funding we’re proud to offer Americans the opportunity to leverage assets that are sitting around doing nothing, turning them into cash that can be put to great use today. If you have a life insurance policy, annuity or structured settlement that you would like to turn into cash, get in touch with us at 1-800-PAID-NOW (1-800-724-3669) or by filling out the quick form at the top of this page.

Determine your Settlement’s Value

The first step is to find out exactly what your structured settlement is worth. The team here at Rapid Cash Funding can help with this by getting you a free quote on your structured settlement and by letting you know exactly how much cash you can get for it, and by when. Simply give us a call at 1-800-PAID-NOW (1-800-724-3669) or you can fill out the quick form at the top right of this page to have one of our professional staff members get back to you ASAP.

Discuss your Options with a Financial Advisor

Once you know what kind of cash you can get for your structured settlement, sit down with your financial advisor to discuss your options. Where would a chunk of cash this large be best utilized? Whether it’s decking out your stock portfolio with some new purchases or shoring things up with T-bills and bonds, professional advice is a key that can help keep you from making poor decisions with your structured settlement cash.

Avoid High-Risk Investments – Regardless of Return

When cashing in a structured settlement to free up the funds, it’s probably a good piece of advice to only consider low to medium-risk investments. A structured settlement is an incredibly low-risk, high-reward asset that is guaranteed to pay out at a certain rate over time. Getting rid of an asset like this from your portfolio and replacing it with high-risk investments removes the certainty that you will keep any returns, and opens up the opportunity for losing the cash if the investments should tank. Cashing in your structured settlement and purchasing a mixture of bonds and other low-risk investments is an excellent idea that can generate long-term financial stability.

Put Some Aside for a Rainy Day

When you sell your structured settlement, it’s best to avoid spending or investing all of the cash that you receive for the sale. Instead, consider placing some of the money aside for a “rainy day” fund, or to help you out when finances are low and there are bills to be paid. It’s impossible to predict the future, but you can at least be prepared for things to go poorly with a large chunk of cash that is tucked away for emergencies.

The team here at Rapid Cash Funding is constantly hard at work helping thousands of Americans with putting their structured settlement to immediate use, whether it’s through a cash sale or through pre-settlement funding. To get a free quote on your structured settlement and to see how much cash you can get for it today, head up to the top of this page and fill in our quick form. We’ll take care of the rest!

Maintaining a Monthly Budget Helps to Determine Financial Need

The first and most important step in managing personal finances is to have some form of regular monthly budget in which all family revenues and expenses are tracked religiously. It can be tough to keep an entire family’s spending in line with savings goals, but with the amount of iPhone and other applications on the market to simplify budget and expenditure tracking it’s a task that must be taken seriously.

Once you are clear on where your finances stand you can begin to ask yourself if the money that is locked up in your structured settlement would be better put to use for projects or investments that can be made today. Making the right moves with your structured settlement can allow you to get ahead now, so that you have a more enjoyable and relaxing future.

Is the Cash Worth More Now or Later?

Unless you can safely say that the cash in your structured settlement is worth more now, you might want to consider hanging on to it. A structured settlement is an asset that will always be worth something, and may end up providing you with the funds you need a few years down the road. In our experience here at Rapid Cash Funding, most of our clients find that their structured settlement cash is worth more today, when they know its value and can put it to work.

Is the Project Worth the Investment?

Taking some time to consider where the money is going is always a good idea for those who are looking to invest. Some investments – such as paying for a child’s college education or getting rid of any remaining mortgage debt – are excellent investments that can even end up saving cash over the long term. Other investments, such as high-risk stock market plays, are less worth giving up an asset like a structured settlement and should receive a bit more consideration before you agree to sell your settlement.

Looking for Other Funding Sources

Finally, it’s worth looking around to determine if you might have easy access to other funding sources that could be leveraged before selling your structured settlement. While it’s best to stay away from high-interest sources of funding like credit cards and payday loans, there are other lower-interest options such as a line of credit that may fit the bill nicely. If your credit rating is too poor to qualify for a loan or line of credit, you can still sell your structured settlement to free up the cash you need.

Rapid Cash Funding is one of the nation’s leading structured settlement buying firms, helping thousands of individuals free up their cash flow by getting rid of a lengthy time-bound asset. To find out more about how we can provide you immediate cash for your structured settlement, annuity or lottery winnings, scroll up to the top of this page and enter your details in our quick form. It’s that easy!

How long have you been in business?

It should come as no surprise that there are always new structured settlement buying firms popping up here and there as small-time operations that are looking to make a buck. The challenge in working with a newer structured settlement firm is that they may not be able to offer you the best price for your structured settlement, or your cash can end up being delayed as they work through the paperwork. Check with the firm to see how long they’ve been around, and stay away from those who opened their doors within the past few months.

How large is your business? How many settlements do you buy per year?

Similar to the question above, this is something that can help you dig down in to the reputation of the business that you are considering selling your structured settlement to. If the firm buys hundreds or thousands of structured settlements each year, you can rest assured they know what they are doing. If they only buy a small handful, you might want to keep checking around.

How much can I get for my structured settlement?

Obviously you’ll want to know how much your buyer is willing to pay for your structured settlement, so it’s a question that is worth asking up front. Be careful with firms that want to grind you down via negotiation as this is a sign of a less reputable company that is trying to squeeze the most they can out of the transaction. When you work with a good structured settlement buyer, they will give you a price that is fair and negotiation won’t feel like a necessity.

How soon will you pay out for my structured settlement?

It’s important to know how long it will take for you to receive the cash from the sale of your structured settlement. Be careful with any firms that offer you 100% of the money within “24 hours” or “days”, as the paperwork isn’t as quick as this and it does take some time to complete. Note that Rapid Cash Funding and other firms may be able to get you lined up for financing to receive some of your cash immediately, depending on the circumstances. Contact us for more details.

Are you listed with the Better Business Bureau or other organizations?

Although many firms won’t take this additional step, you can ask your structured settlement buyer if they are listed with professional rating organizations like the Better Business Bureau. If so, you can call up the BBB or other organization to check on the ratings of the firm and to hear any feedback that previous customers have left about them.

Rapid Cash Funding is your partner in getting cash for your structured settlement. Our team works hard to ensure a fair deal for you and your family so that you can get the cash you need. For more information or a free quote call us today at 1-800-PAID-NOW (1-800-724-3669) or fill in the quick form at the top of this page. It’s that simple!

The structured settlement annuities reflect the payment stream that is supposed to be tax-free and paid normally in equal amounts across equal time period intervals.  The flexibility that is appropriated by structured settlement annuities remains unmatched by other types of investment solutions like stocks, bonds, savings accounts, and real estate among others.  The said can be said for the level of security that can be derived from structured settlement annuities.

Taking Advantage of Structured Settlement Annuities

The structured settlement annuities are becoming quite common primarily because of the added security it enjoys from the regulation provided State and Federal statutes.  Some provisions are likewise ensured through the Internal Revenue Service code including recommendations from Medicare/Medicaid which are likewise factored into the concept.  In order to properly take advantage of structured settlement annuities, it is important to become familiar with its various conditions.

• One of the best ways to take advantage of structured settlement annuities is to have the payments made over extended periods to ensure that they last the lifetime of the plaintiff.  This will ensure that upon the untimely death of the recipient, there is a guaranteed portion of the original settlement that will remain to be paid to the estate or any named beneficiary.
• It is important during the consideration of periodic payment to take into account the commencement date of the payment, its duration, including increments if any.  The basis should be done on the premise of using the structured settlement annuities for future financial obligations. 

In this context, recipients can take advantage of the money by factoring in their monthly expenses, hazard of occupation, current age, as well as any retirement plans.  Qualified assignment allows insurance companies to transfer the obligation of payments to a designated third party.

• To ensure that the payments received from structured settlement annuities continue to be tax-free, it is important to alter the scheme once both parties come to an agreement.  It is equally important in the context of structured settlement annuities to understand that payments made to the estate remain free of income tax but continue to be covered by estate tax.
• Based on the laws of State and Federal governments covering structured settlement, the entire process can be closed out anywhere from 3 to 6 months.  This means that an individual may run out of available money even before the structured settlement annuities begin to kick in.

In order to take advantage of the benefits of the structured settlement annuities agreement, you must realize that a court order is necessary to avoid tax liabilities.  Obtaining the court order must be in accordance with the Structures Settlement Protection Act as recognized by 36 states of the United States.

• To take complete advantage of the structured settlement annuities agreement, the recipient must be aware that a disclosure statement should be made available from 3 to 14 days prior to receiving the transfer agreement.  This disclosure agreement should specify the amounts to be paid including the corresponding due dates.

In the same manner, it must include the IRS Discounted Present Value for that amount, the Annual Discount Rate, and the Gross Advance Amount as well as the list of fees and commissions that are incurred.  This helps to avoid unforeseen and sudden expenditures associated with the structured settlement annuities.

• Unless you are extremely adept with statutory law or the Internal Revenue Service code, it would be to the best interest of the recipient to obtain the services of a qualified attorney.  This will ensure that the proper advice would be given to take full advantage of the structured settlement annuities.

In fact, having an attorney is a precondition in some states when it comes to dealing with structured settlement.  Recipients do have the right to waive legal representation for the Transfer Agreement of receive an Estoppel letter from the qualified attorney.

• To take advantage of structured settlement annuities, the recipient must realize that the court order and the assignment must be received.  The funding company will never initiate payment to any individual without these documents.  In the same manner, a recipient should be aware that payment actually starts anywhere from 30 to 45 days after receiving the court order depending on the funding company.
• In the context of understanding and taking advantage of structured settlement annuities, it is important for the recipient to remember that there is an option to have a lump sum payment instead of the regular payments.  This type of option is provided to ensure that the recipient has access to immediate huge amounts of money which may be necessary to purchase a house, pay medical bills, or settle mortgages among others. 

Knowing the presence of this option, works towards taking full advantage of the structured settlement annuities.

It is important to keep in mind that structured settlement annuities are not one-way streets that need to be followed strictly.  This means that for the recipients to take advantage of the agreement, it is extremely necessary to be aware of the various conditions that may arise from it including the alternative payments that are available.  By learning about this information, any recipient can successfully take advantage of structured settlement annuities.

Structured settlements are paid instead of lump sums in order to minimize interest rates and taxation. They can vary further in the intervals and amounts they are paid in; sometimes you can get large amounts of cash at a time, while others may issue you regular checks. Depending on the person you are suing, you can count on getting your structured settlements after a heated court session. Just don’t forget that a legal battle can go both ways.

How Structured Settlements Work

A structured settlement is the money or asset settlement an individual or company gets after winning a legal proceeding. The “structured” in structured settlement pertains to the nature of the payments, which is typically paid in regular intervals rather than all at once. These intervals are to make sure taxation and interest rates are at a minimum when the winning party gets the payments.

According to the Internal Revenue Code, Section 5891, structured settlements are bound by the following criteria:

• A suit or agreement for periodic payment of damages excludable from gross income, under Internal Revenue Code Section 130
• An agreement for the periodic payment of compensation under any workers’ compensation law under Internal Revenue Code Section 104

Internal Revenue Code Section 130 states that the periodic payments of a structured settlement must be made payable by:

• A party to the suit or agreement, or to a workers’ compensation claim
• A person who has assumed the liability for periodic payments under qualified assignment in accordance with Internal Revenue Code Section 130

Structured settlements in the United States are regulated at both federal and state levels. They are especially endorsed by many disability rights organizations in addition to being backed by the laws of 47 states. This n includes protection acts which are enforced by the National Conference of Insurance Legislation, or NCOIL.

Advantages of Structured Settlements

There are some particular advantages to having structured settlements instead of a single settlement:

• You are guaranteed a source of income for a long period of time, sometimes even for life if the settlement is large.
• Taxes and interest rates in a structured settlement plan are significantly reduced on any investment income. Taxes and interest rates usually occur in investments found in many lump sum settlements.
• The time intervals between payments allow you to plan your expenses. If you are an impulsive spender, this may teach you some discipline when it comes to money matters.

However, there can be some disadvantages to structured settlements:

• When you agree to a structured settlement plan, you are bound by law to stick to it. It can be very difficult to revert to a lump sum payment or any other kind of settlement plan after you agree to a structured settlement.
• Rising inflation rates may make the regular intervals of cash seem even smaller, especially if you plan on living off one for life.
• Again, the time intervals between payments may prove to be a negative factor for some; other people typically depend on structured settlements as a secondary form of income.

If you are familiar with the ups and downs of structured settlements, then discuss these matters with a legal adviser or your lawyer before you plan to go to court.

Keep In Mind

• Structured settlements can vary greatly in the amount they pay winners of legal battles. Some may end up paying small cash settlements, while others may set up beneficiaries for their entire lives.
• Structured settlements are not intended to change the amount that is won by the winning party. Don’t count on increasing the amount stated on your structured settlements if you have already won.
• If you have won a structured settlement, there is some leeway that may be allowed in order to get more money during a payment interval than usual. For short-term financial crises that need tending to, recipients can opt for a structured settlement factoring transaction, which may include a larger payment during an interval.
• Structured settlement factoring transactions can also be reverted to a present lump sum payment, but this can often be a difficult task.
• Defendants will usually have to purchase an annuity in order to receive dollar amounts which are paid up front. This annuity will schedule the regular income payments with the aid of your attorney.
• Structured settlements can be as flexible as you want them to be, provided the terms are discussed beforehand. You can have large amounts payed to you at regular intervals, or have small amounts spread across a larger span of time.
• Keep in mind that, if you have not won the legal battle yet, you still have a chance of losing it. Don’t plan too far ahead of time.

Once you have all you need to file a case, consider getting a structured settlement plan instead of one big lump sum payment.

In fact, this process has been included in the common law of some countries like the United States, United Kingdom, Australia, and Canada among others.  There is also a growing trend in the United States that has contributed to the popularity of structured settlement as opposed to lump sum settlements.  In this context, it is important to clarify the concept of structured settlement.

What is the Concept of Structured Settlement?

Basically, when a case settlement for a large amount of money is reached, a payment plan will be proposed.  This settlement will normally involve installments during a specific period instead of a one-time payment.  This is generally the essence of structured settlement.  Sometimes the implementation of the structured settlement can be done through the buying of annuities to guarantee future payments.

The manner of payment that can be undertaken with a structured settlement can essentially be any type that both parties agree to.  This means that it may be annual payments stretching over a period of specified years or can also be paid as a periodic lump sum in regular intervals.  This flexibility should be understood completely before attempting to complete any structured settlement agreement to ensure that it becomes advantageous to the plaintiff.

What Benefits can be Achieved by Structured Settlement?

It is understandable that going into a structured settlement agreement should present some distinct advantages to the plaintiff.  Otherwise, it would be unwise to entertain such proposition.  In this context it becomes extremely important to understand the potential advantages when entering into a structured settlement agreement.

• Tax avoidance – entering into a structured settlement provides you with a legitimate way to avoid paying taxes for the money that you receive.  This however must be setup appropriately in order to present significant reduction in your tax obligations arising from the settlement or to take advantage of the payments completely free from any tax obligations.

• Avoids funds from being dissipated – the implementation of this agreement will ensure that the money received will not run out unnecessarily because it will be received in stages.  In fact, the setup of the structured settlement is ideal for people who have problems managing their financial assets.  For younger beneficiaries, the funds can ensure that they will have adequate money to pay for their college education or similar educational expenses.

• Special needs trust – in some instances wherein the plaintiff has become severely disabled, either as a result of the case or not, a structured settlement becomes more advantageous compared to a lump sum settlement.

The benefit is that it helps to compensate for the shortcomings of public assistance and other medical assistance packages like Medicaid for example.  To maximize the potentials the services of a disabilities financial planner may be necessary.

Are there Disadvantages to a Structured Settlement?

With such advantages that are presented by a structured settlement agreement, it is important to know that there are some disadvantages to utilizing this process.  One of the distinct disadvantages when utilizing this agreement is that it may give the plaintiff the feeling of being trapped by the periodic payments.  In this context it is important to note that it is rarely allowed to borrow against any future payments arising from this agreement.

Another potential disadvantage comes for those who are adept in investing money.  Essentially, if they have the talent and knowhow, receiving a lump sum settlement and investing it will yield better results for them than just waiting for the staggered payments.  In this instance, the structured settlement agreement presents a disadvantage for the plaintiff.

Can a Structured Settlement be Sold?

One of the most valid questions that may arise when dealing with structured settlement is the possibility of selling it for instant remuneration.  There may be instances wherein companies may approach a plaintiff to signify interest in buying the structured settlement.  It would be beneficial to know however that almost two thirds of the states have already signed into law restrictions on the sale of such agreements.  This means the possibility of selling your agreement would actually depend on where you live.

One more thing that you must consider when contemplating to sell structured settlement agreements is that buyers intend to make a profit out of the purchase.  This means that the offer may be substantially lower compared to what you expect to receive from your original agreement.  It is likewise necessary to ensure that the buyer is reputable, established, and well-funded to avoid being scammed out of your payments.

How can a Plaintiff be Exploited with a Structured Settlement?

To be protected from exploitation, you must realize that there can be some potentially dangerous conditions that can allow you to be on the short end of the stick when it comes to a structured settlement agreement.  Being aware of these conditions will help you to get the highest payoff possible without being taken advantage of.

• Excessively high commissions – insurance companies can profit substantially from the annuities of the agreement, which also leads to huge commissions.

• Overstated value – there is a tendency for the defense to overstate the value of the agreement.  This means that the plaintiff may accept a lower value structured settlement with the defendant gaining major rebates from the annuity company down the line.

• Life expectancy – depending on the age, lifestyle, and health of the plaintiff, some lawyers may exploit any negative situation arising from these conditions.  This means that when agreeing to a structured settlement you must consider your potential life expectancy to make sure that you completely benefit from the payments.

Clarifying the concept of structured settlement will help you to determine if the agreement is truly advantageous to you as a plaintiff.  After all, one of the intentions of having a structured settlement is to see that justice is served.