by John Darer CLU ChFC CSSC RSP CLTC
Some structured settlement purchasers will indiscriminately encourage annuitants to sell off the most immediate structured settlement payments for the biggest payoff.
The result of taking the advice is that the structured settlement annuitant sacrifices current income when he or she may not be employed, or vulnerable, and has been "set up" to sell more payments
The cycle then becomes self defeating for the annuitant as the settlement purchasers returns for another giant helping from your "structured settlement salad bar". It is a situation that may cause an annuitant to look back with regret
Just look at the advertising messages proffered by some of the cash now pushers…
- Cash today for a better tomorrow;
- Don't wait;
- Why Wait?;
I was contacted by a 22-year-old annuitant, married with two children, who has repeatedly sold portions of their settlement and is now looking to sell lifetime payments that are set to begin 40 years from now. Despite having sold most of their payments, this individual still possesses a viable, guaranteed, tax-free retirement plan through their structured settlement. The challenge lies in bridging the financial gap from the present until the commencement of those payments, having liquidated all other payments.
In my recent video " Selling Your Structured Settlement", one of the latest entries in our Structured Settlement Education Series, I discuss who is qualified to give you structured settlement advice.
Don't Shoot First, Think First!
Rather than opting for a "really big lump sum," consider seeking independent professional advice, taking the necessary steps to meet your needs, maintaining an income, and having the chance to compensate for it later.
Independent Professional Advice (IPA) for Structured Settlement Sellers (4structures.com)
I also encourage judges reviewing petitions for structured settlement transfers to be more vigilant about their reviews.
Last updated May 19, 2024
Leave a Reply