Selling Your Structured Settlement Get The Cash You Need Now

Lump sum versus annuity

Many people prefer to received cash for structured settlement payments such as annuities, lottery winnings and legal awards. And 92% of those who do so are confident that they made the right decision.
The advantage of selling a structured settlement is that you free up funds for immediate use instead of having to take them in incremental payments. Some possible reasons for getting cash for structured settlement payments might be starting a business, paying off debts, funding college tuition or taking a vacation trip. Structured settlement purchasers give you the option of having funds available when you need them for emergencies.
If you’ve purchased an annuity, you may already know that the annual management fees alone may be as high as 2% to 3% per year. Variable annuities can require a flat fee of $20 to $30 annually. And there’s a surrender penalty of up to 7% for early withdrawal of any funds (usually during the first five to seven years you have the annuity). In fact, any money taken out before you reach the age of 59 1/2 will be subject to a 10% fee and whatever taxes may apply in your situation. Then, when you reach 70.5 years of age, you must start taking withdrawals in certain minimum amounts specified by law. There are some exceptions for Roth IRAs and those employees who are still working.
Beside annuities, other structured settlements can include lottery winnings or judgements stemming from lawsuits such as for a work injury or medical malpractice. It’s often in your best interest to have the money now instead of it being paid to you over a longer period of time.
Only you know for sure whether getting cash for structured settlement payments is the best long term solution in your particular case. And, you’ll want to find a settlement purchaser who will provide competent advice regarding what to do with the lump sum when you receive it.

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