by John Darer® CLU ChFC CSSC RSP
But factoring companies, THEY want you to sell, because THEY want your structured settlement!
Sierra Capital Funding, LLC, a Fort Lauderdale structured settlement factoring company owned by Sylvia Alayon, lauds the value of structured settlements in a June 18, 2012 missive that targets structured settlement annuitants to sell using a similar theory to that espoused by Roger Proctor of Genex Capital in March 2010.
Sierra Capital Funding first says this:
"U.S. interest rates are at the lowest in recorded history. The records of the United States treasury department which date back to 1791 show that interest rates are the lowest they have ever been. Due to the poor economy structured settlements are one of the safest financial assets an individual can have. Structured settlements guarantee a steady payment stream of cash as opposed to the stock market which is about hoping for a return on your investment. If the economy continues at its current rate
investors are likely to be even more at risk to losing their returns on their investments".
Then Sierra Capital Funding says this:
"Throughout the documented cycles of our domestic economy there are always high and low points. Of course, and hopefully sooner rather than later the economy will bounce back and when it does the value of your structured settlement will decrease. If you have been asking y0urself “When is the best time for me to sell my structured settlement?” there is no better time than the present. Due to the fact that structured settlement payments are guaranteed their value has never been higher. Sierra says don't wait for the economy to bounce back to try and sell your settlement as the value you will receive will not be as high as it will be currently.
Flashback to March 26, 2010:
"WARNING AGAIN: If you are thinking of selling your structured settlement payments, do it NOW, before interest rate increases eat into the value of your future payments and make you poorer"- Roger Proctor, CEO Genex Capital, Vancouver, BC
As I reported in Less Cash Now A Case For "Proctorate Cause April 21, 2012, that "cry of wolf" proved to be unfounded. On the theory reflected in the title of the Sierra Capital Funding missive those who sold in 2010 would not receive as much cash for their structured settlement as they would if they sold in 2012, or simply waited to be paid according to the schedule they agreed to when their case was settled in the first place.
Comments
- If you have a structured settlement and you need cash now, try to be patient and explore ALL avenues for raising cash or renegotiating your debt.
- It is good that there is a secondary market for structured settlement payments rights so that people who have genuine needs have a way out, subject to each state's structured settlement protection act.
- If you sell your structured settlement payment rights, you will NEVER get all of your money, regardless of who you sell to, You will only receive a percentage of the present value of the future structured settlement payments that are sold.
- If you keep your structured settlement in place, you own a valuable contractual obligaton that is backed by the credit of the annuity insurance company or companies. Subject to the credit worthiness of the annuity insurer, you will receive your structured settlement payments as scheduled.
- It is very important to weigh the benefit gained by a sale versus the loss of income (provided by the scheduled structured settlement payments) that you will no longer have if the deal goes through. This is particularly important if you have not addressed the cause of financial problems.
- Sometimes, after careful consideration of facts and circumstances, it does make sense to sell but it's not an automatic "yes".
- You can't go back on a mistake. I have received a number of cold calls from people who sold who regretted that decision years later.
Selling A Structured Settlement in 2023? Get The 411 on Cash Now. Don't Be a Victim (4structures.com)
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