Quick Cash for Your Structured Settlement Payments.

What are some things that you need to know about before cashing in your structured settlement annuity.

A company or broker has to be found, who deals with the sale of structured settlement annuity payments.

Buying structured settlement payments is difficult. Find someone who knows what they are doing. Find out how long they have been in business.

You should also consider checking to see if there are any lawsuits being filed against the company or broker. - contact your local Department of Consumer Affairs.

Talk at length with the company or broker, ask him / her questions and get a feel for how knowledgeable they are. Trust your gut feeling! Steer clear of those who promise much more money or can get it faster than others. If it sounds too good to be true, then it is.

Will I get my money in a week or two?

It's going to take a minimum of 1 and a half months to 4 months. Anyone saying less time is not to be trusted.

1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing ? it makes selling your settlement a little safer.

2. We need a copy of the annuity and other documents from the the Insurance Company. This takes time, some companies send it out quickly others will take their sweet time.

3 An expert broker or a company that knows the different funding companies and their requirements will save you time and effort.

4. Its good to have an A rated Insurance Company holding your annuity. Selling lower rated companies annuity payments, will get paid less money. Investors are looking for the safest investment for their money.

5. In addition to the above you will need the necessary documentation such as copies of the following: The annuity, the settlement agreement and release, photo ID, recent payment check and application. These are some of the things to consider. For now it gives you a good idea of what's required.

What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before selling your payments.

Now that you have decided to sell your structured settlement you will need to take some things into consideration. Ask yourself? Is there going to be a tax consequence? As of January 23, 2002 a new law that governs such sales, does not impose any tax liability for selling a structured settlement.

Another thing when selling your payments, is selling only a portion. Sell the payments that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell your structured settlement payments in the future .

Know that your settlement was meant to be used over time and selling it now can leave you with money problems down the road.

Frank ReCouper Sr. is President of FDR Resources and has been in financial services for over 45 years. For more information: http://www.money-now.net/structured_settlement_resources.htm or http://www.rp-capital.com

About the Author

Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R

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