Disadvantages To Using Structured Settlement Brokers

Structured settlement brokers are intermediaries between you and the company looking to buy your structured settlement. While many will not ask for an upfront fee, they can earn a commission from the final sale of a structured settlement or annuity.

Many companies that buy structured settlements provide an “in house” structured settlement broker. They say this is to benefit the seller. However you should know that they are receiving some form of payment at the end of the transaction. The pricing of brokering a sale includes a commission structure, which is a percent of the total lump sum.

Structured Settlement Brokers

Some transactions may even have two brokers involved, the one you hired and the one the company hires to negotiate. This means both have to be paid and it could come out of your cash.

Be Your Own Structured Settlement Broker And Receive your Money today

When you reach out to a reputable company to sell your structured settlement or annuity they will explain the different options you have in getting your money.  Whatever the reason, they will work with you to get you the cash you need to:

  • Pay bills.
  • Get some breathing room during a tight financial month.
  • Pay for an unexpected emergency
  • Get your car fixed

How do I know I’m getting the best deal for my structured settlement?

When you do your homework and get quotes from different companies, you’ll learn that not all structured settlement offers are the same. At the end of the day, you need to consider your financial situation and make sure you are happy with the money you receive.

Also keep in mind, a reputable company can purchase some or all of your structured settlement payments. Any structured settlement purchase has to go through a judge. The judge will look after your best interest and determine if the company buying your settlement is being fair. Many people already have a lawyer and can get advice from them, if needed.  Why lose any of your money to a broker?

When Not to Sell Your Structured Settlement

Should you decide to sell your structured settlement, we here at 123 LumpSum would love for you to contact us.  However, we only feel good about assisting clients with this process if it is their best interest.  Therefore, we would like to make you aware of some times when it may not be prudent for you to sell your structured settlement.

  • You are already financially solvent.  If you can already afford to take that vacation, buy that new home, or pay your college tuition without your structured settlement money, it’s better to continue receiving your standard payments as is.
  • The money will not completely solve whatever issue you have at hand.  Structured settlements are typically designed to support you over a period of time.  Therefore, particularly if you are out of work, taking all the money out at once and using it to entirely cover one item can be a gamble. Fortunately, our agents can design a partial purchase plan for you that leave you with some regular income to cover your regular expenses.
  • You need all the money immediately.  Please understand that even a speedy structured settlement sale takes about 45-60 days to go through the legal process. However, in many circumstances, our customers will qualify for immediate cash in the form of an upfront advance on the proceeds from their closing. Speak to your sales agent to see how much money can be advanced to you immediately.
  • You are not good at tracking your spending.  Take an honest assessment of your habits.  You will want to make sure that you have the discipline it takes to execute financial plan once you have a large lump sum of cash accessible to you. Be sure that anyone who has access to your bank account is also as financially responsible as you are yourself.
  • You are thinking about using the money for a speculative investment.  All investments contain some element of risk.  Just remember the adage that if it sounds too good to be true, it probably is.  Even if you are thinking of using the money to invest in something that sounds very stable, like a new business, consider carefully.  The latest statistics from the Small Business Administration show that 33% of all new businesses fail within 2 years.  Make sure that you are well grounded in the business you are in or which you are going to invest.

If you would like to discuss further if selling your structured settlement is right for you, give us a call today at 1-800-400-9123.  We are happy to speak with you and, if you would like, provide you with a free quote. You may also want to consider to obtaining independent financial or legal advice when considering your circumstances. We are happy to help!

Things to Consider When You Receive a Lump Sum

If you are currently receiving payments through a structured settlement and are interested in receiving some or all of your future payments now, 123 Lumpsum can help. We are a specialty finance company that applies expertise in institutional financing, underwriting, and the law to purchase future cash flows for our clients. Call us toll-free at 877.Y.NOT.NOW (966-8669) or request a free structured settlement quote online.

We would like to provide you with a few things to keep in mind as you prepare to receive your lump sum. Prior to receiving your lump sum, you should be prepared with a game plan. Financial experts recommend the following:

  • Don’t start giving away your money. There may be some financially needy people in your life, but before you share your wealth with them, take stock of your own financial priorities, and attend to them first.
  • Don’t immediately purchase big ticket items. Use financial software to create a budget and see what you can reasonably afford now given your long term financial goals.
  • Don’t blindly invest your money on the “next big thing.” Get advice from several investment professionals and consider it carefully before you move forward.
  • Do not start a business without adequate preparation. The thought of being your own boss is tempting. However, purchasing a restaurant if you don’t have a background in the food service industry may be premature.
  • Don’t do anything you wouldn’t normally do. Chances are that up to this point you have been living a frugal lifestyle, and you actually shouldn’t change it too drastically. Maintaining good spending habits will make your money last longer. This is not to say you shouldn’t treat yourself on occasion, but why switch to name brands if you have always been fine with generic ones?
  • Don’t spend money or undertake any obligations prior to actually receiving your lump sum.

Overall, you should allow yourself some time to think things through and carefully plan what you will do with your lump sum in order to obtain the maximum benefit from it.

Partial Sale of Your Structured Settlement

123 LumpSum is a specialty finance company that applies institutional financing, underwriting, and legal expertise to purchase future cash flows in the form of your structured settlements and/or insurance annuities. As the leading purchaser of structured settlements, we’re making it easier for people like you who want to make positive changes in their lives get cash now.

Do you need money today but are concerned about giving up the security of your current fixed payments? If so, a partial sale of your structured settlement may be for you. This is a way to get a certain amount of money now, while continuing your future payments at a reduced amount. People often opt for partial sales for the following reasons:

  •         Obtaining the ability to manage money more effectively.
  •         Supplementing loss of wages/job loss.
  •         Strengthening an investment portfolio.1
  •         Needing an advance to pay for a one-time event, such as a vacation or wedding.

You may recall from a previous post that in order to sell all or part of your structured settlement, you are required to appear before a judge. While the money belongs to you, the judge is there to help prevent owners of payments streams from using the money unwisely. Therefore, the judge will ask you for the reason you are requesting the payout. It is usually favorable to the court if you take the more conservative approach of selling partial payments rather than the entire sum of what you are owed.

If you would like to investigate a partial payment of your annuity further, please do not hesitate to contact 123 Lumpsum at  877-966-8669. By applying our knowledge, we can make your financial dreams come true!