by Structured Settlement Watchdog®
Certain representatives of structured settlement purchasers are apparently attempting to unsettle structured settlement annuitants by giving them the impression that they are not earning any interest on their structured settlement. Nothing could be further from the truth.
If you have a structured settlement and you hear that family-size "bucket of B.S." be careful not to "fall in love"!
It is possible that you just need to better understand what you have. Such statements made by people who could talk the legs off a chair, unfortunately show that the cash now representative makers are either (1) ignorant (2) dishonest or (3) prone to exaggeration. Match those "skills" up with a structured settlement annuitant whose strengths are not in finance and you have a recipe for real financial harm.
Pardon me for being a bit wound up in writing this post after receiving a call from an annuitant who was left with the impression (from speaking with a cash now pusher), that rate of return of an annuity set up in the mid-1980s was only 3%. Fortunately he called me and the 3% was actually the COLA on his annuity! On April 10, 1985 the 30 year United States Treasury was paying 11.54%! And structured settlement annuity rates traditionally exceed the treasuries over the long haul.
What does this mean if you have a lump sum of $200,000 due in 2024?
It does not mean that you have $200,000 sitting with the insurance company earning no interest!
Think of the $200,000 in 2024 as the "value at maturity". When the structured settlement was set up in the 1980s, the defendant's insurer did not put $200,000 away so you could have $200,000 almost 40 years later. They put away far less than that and, given the fantastic rate of interest that was locked in then (and accruing income -free) you will receive that $200,000 income tax free at "maturity"
Selling your structured settlement is a major financial decision that needs sober thought and careful consideration. If you need liquidity for a legitimate reason there are resources for you. Stay away from non-credentialed opportunists.
If you need help to determine the rate of return on a structured settlement, or simply need structured settlement quotes please contact us at 888-325-8640