Buyers of structured settlements

Structured settlements are payments to your person over a period of time. Structured settlements are often taken in the context of litigation, wherein in a large civil damage owed to your person is broken up over several years so that the other party can afford to pay the amount due.  Since payments are often on an annualized period, these are also called annuities.  Payment is guaranteed by law, however there is the level of inconvenience of having to wait for several years before the payment comes through. Furthermore, if the settlement is an outcome of litigation, the interest rate attached would most likely be just the cost of money, which should be close if not exact to the bank payement.  

Now you might find yourself asking, ‘Where can one find buyers for my annuities? Today one can find buyers almost everywhere. Simple searches online on words such as “annuities”, “sell my annuities”, “buy annuities” and any other possible permutation will lead you to dozens upon dozens of sources.   These firms offer fast turn-around of transactions such that you may get cash for your annuity in six to eight weeks time.     A typical process would be for you to first input your particulars online. Depending on where you are they will then assign an agent to you who will then get in touch with you. To avoid unnecessary complications, look for companies that already do business in your locality.. 

Fast cash and lump sum cash for Structured Settlements

A growing number of companies offer "fast cash" or lump sum cash for structured settlements. Before latching on to these offers, first ensure that the company you choose to sell your settlement to is on stable financial footing, so that you are exposed to risk of not receiving your lump sum after you sign over your annuities to them.

While you can get spot-cash for your annuity, expect the amount to be much less than the total sum owed to you. First you will have to pay for the necessary processing fees to sell your annuity. Even if the buyer of your annuity claims that they will absorb this cost, expect that the cost of such operations have already apportioned to your transaction.  In addition to this cost, expect the buyer of your variable annuity to offer you a lower rate of return than you originally bargained for.

This is because you are effectively transferring the time cost of money attached to annuities to the buyer. The buyer will then have to deduct his targeted profit margin from your return rate.  Hence, do not expect to make a profit from the sale of your structured settlement, unless you have an immediate investment opportunity whose rate return will make up for both the loss in interest  you will incur when selling your annualized settlement, the rate of return of the bank, plus your desired profit margin.
 
Look for a buyer that will take the time to discuss your financial options with you. A trustworthy company informs you of the alternatives you have and whether or not the sale of your settlement is really the best option for you.
 
A major red flag is a buyer promising to deliver your funds in a matter of weeks or even days. Run in the opposite direction as fast as you can. The realistic time frame for selling a structured settlement is at least 90 days.
 
The best thing for you to do is to consult a financial advisor or asset manager who will look at your financial needs in a macro perspective. Selling your settlement or annuity payments exacts high fees and penalties. All other options should be considered thoroughly prior to making a decision.

A financial advisor or asset manager can provide you with several funding/investment actions based on your financial goals, of which selling an annuity may be just a small part of. If indeed the most viable option is to sell an structured settlement, have your asset manager perform an objective third-party evaluation of your settlement so that when you talk to buyers, you will have a benchmark to compare their quotes as well. Secure recommendations from your asset manager as to credible settlement buyers. Together you can both evaluate your leads and options to guarantee that you get the best bang for your buck.

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