Annuity Advice

In an uncertain economy, everyone in the nation planning for retirement can use some amount of certainty when planning for retirement.  Private annuities are not utilized as often as they should be and provide a certain income in an uncertain time.  By funding the annuity with a lump sum or monthly payments, you can set yourself up with a contract that will pay you a designated amount monthly at a specified age.

Annuity advice is much needed for those who lack knowledge in different financial avenues.  While you do not have your Series 6 or 63 licenses, it is understandable that you may not have an in depth understanding of how an annuity actually works.  These financial tools can help annuitants achieve their mid and long-range goals for planning for retirement or future expenses.  An annuity is essentially a tool where buyers insure themselves from out-living their money.  Where life insurance is a policy, it guards families financially for family members who die to soon, annuities protect families financially when retirement has run out.

When you buy an annuity, which is generally offered by a life insurance company, you are scheduling the receipt of periodic payments that are guaranteed.  There are several options of payout, including spread over a lifetime.  If you live longer than the insurance company predicts you will have significantly benefited from the investment, whereas if you were to die early in life you will receive far less than you put in.  While it is a gamble, this investment guarantees a specific monthly income for the remainder of your lifetime and can significantly increase your retirement income.

Annuities are an investment vehicle that allows people to save money over a period of time and offers a guaranteed stream of income that even social security cannot promise.  Consider speaking with an investment professional about single-premium, flexible-premium and immediate annuities to choose the best option for your budget and your need.

Please check out all the articles we have on Annuity Advice below.

Annuity Services

Annuity services are actions taken to service annuities.  An annuity is a financial term that means any kind of fixed payment that is paid out slowly over a specified period.  For example, an annuity might be regularly deposited into savings accounts, or made out to a monthly mortgage payment, or may even take the form of an insurance policy.  The processes and details involved can be complicated, though.  For example, annuities are deposited (or paid) on regular intervals of time, such as quarterly, yearly, or maybe shorter, such as monthly.  The time value is important because the amount due can be complicated by issues such as future values, inflation, and interest rates.

With all of these factors to consider, annuity services are important.  When banks, jobs, or payment plans offer annuity services, always make sure to check up on them.  They refer to both the level of help that you will be offered in understanding and making choices about annuities, and to the specifics of the annuity beyond your control.  For example, the equations used to make and plan annuities are incredibly complicated and require a strong mathematical background.  These equations are often fixed, and it is important to understand what exactly is involved before you sign any contracts or agree to anything.

When looking at an annuity of any kind, make sure you check into the details, and make sure you have someone who is qualified there to help you understand exactly what is going on.  Finding a plan with all the services you want is important, because if you do not, you will find yourself boxed in by the rigid and fixed nature of the annuity.  When looking at annuities, online or in person, never be afraid to ask about the services, available or mandatory, and always make you understand everything before signing the bottom line.

Structured Settlements

Welcome to the Structured Settlement Guide!

ss1-300x200Structured Settlements are a relatively new phenomenon in the financial world in short, they are payments of one sort or another (for example, court-awarded compensation) staggered in increments over a period of time. There are companies who would like to buy structured settlements for a lump sum (they see them as investments), and there are people who would like to sell their structured settlements, and receive a lump sum. Read on to find out more

If someone is injured either physically or emotionally because of another persons actions, they may file a lawsuit. Often, if the probability of the plaintiff winning is high then the defendant will choose to settle out of court. In addition, if a case goes to trial and the plaintiff wins, the court will require the defendant to pay a settlement. Although it is occasionally given to the plaintiff in one lump sum, the majority of the time the plaintiff will suggest paying in installments. This method of paying a settlement is called a “structured settlement.”

There are several advantages to setting up structured settlements. It is easier to be sure that the full amount is paid in the long run because it is usually set up in an annuity account. An annuity is a type of life insurance. Moreover, the defendant will be more likely to have the smaller amounts paid in each installment than to be able to pay the entire settlement amount at one time. The timing of the structured settlements is part of the negotiations between the plaintiff and the defendant. The interval for the settlement payments can be set up in any way. Some options are monthly, bimonthly, weekly, biweekly, or even yearly.

Using structured settlements may also prove advantageous with regards to tax payments. Since the amounts are smaller, they are not taxed as heavily as larger sums. Sometimes the money in structured settlements will be completely tax-free. There are other financial benefits to choosing structured settlements over a lump-sum settlement.

If a person chooses to take a lump-sum settlement, they will need to invest it. The problem with this requirement is that investing wisely takes a great deal of experience and savvy. The average person would probably not have the know-how to invest successfully. As a result, some of the money from the settlement will have to be paid to a financial adviser. The fees for this service are often expensive.

For those who have special needs or are not old enough to handle the money themselves, structured settlements allow a significant amount of protection. For minors, structured settlements can help cover expenses throughout the child’s life. Some of the money can be set aside toward a college fund as well. Those payments from structured settlements also make it easier for those who struggle with handling money hold on to the settlement longer. There are statistics that show lump sums are spent within five years. Sometimes they are spent within a couple of months.

Although structured settlements have many benefits surrounding them, there are some definite disadvantages as well. Plaintiffs may want immediate relief from the injury or emotional stress an incident has caused. If the lawsuit was because of an injury, then waiting for structured payments may not be the best idea. This is because the cost of medical treatments continues to rise and the hospital or other medical service providers will not wait until the plaintiff has the money from the settlements. In this case, a lump sum settlement will probably be a better way to go. There is also a disadvantage for insurance companies who pay out for structured settlements. It does not look good for the insurance companies to have too many structured settlements that need to be paid out.

Structured settlements can be very useful for both plaintiff and defendant in a lawsuit. For the plaintiff, it can help control the money and give tax relief. However, there are plenty of disadvantages as well. Both parties wishing to enter into a settlement need to do so after careful consideration of the facts.

Whatever your interest in structured settlements buying, selling or research the Structured Settlement Cash Guide is your one-stop resource. We cover every structured settlement topic imaginable from finding a structured settlement broker, to the finer points of the cash flow notes business.

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