Tips on Selling a Structured Settlement

If you watch any TV or surf the internet, you probably have seen numerous advertisements from companies wanting to purchase your structured settlement or annuity. If you have a structured settlement or annuity to sell, it might make sense to explore this option if you need the cash immediately. But you should be aware of the potential draw backs and issues concerning selling a structured settlement.

Some issues concerning the sale of a structured settlement include:
1. Roughly two thirds of states have laws that restrict or limit the sale of structured settlements. Most of these laws were enacted to protect the consumer and ensure the original intent of the settlement will benefit the holder.
2. The sale of a structured settlement generally must be approved by the court which has legal costs and implications.
3. Some insurance companies who back the structured settlement through an annuity limit or prohibit the sale or transfer. Or there may be additional costs imposed by the insurance company.
4. Buyers of structured settlements are in business to make money. You should be aware that the amount you receive in a lump sum with be greatly discounted. The amount of the discount will depend on the amount of the settlement, time remaining, interest rates, discount rate, and many other factors. For this reason, you should obtain multiple quotes.
5. Do forget the potential tax implications of receiving a lump sum versus annual payments.

For more information about selling your strucutred settlement, please go to MyNoteMarket.com

* Please consult a lawyer, licensed insurance agent, securities broker, tax professional or other financial professional for advice regarding your personal situation.

Is Your Money Working Hard Enough for You?

Are you leaving money on the table because of laziness? If your main bank credits very low interest on your account balances, you can get a nice boost by managing these balances. If you have accounts at places like E*Trade, Schwab, ING Direct, Ally or even Capital One, you can easily transfer money between accounts to maximize the interest you are getting. 1 or 2% may not sound like a lot of money but if you have a $5,000 average balance and manage it to the highest interest rate, you could pocket $50 to $100 dollars over a year.

To boost it even further, invest the extra interest in a blue chip stock like Verizon or other stock which pays a healthy dividend. Think of it as found money that you will not touch for a long time. With time and compounding, you maybe surprised at the balance in 10 years.

Just make sure you do not get charged for transfers between accounts. Many banks today are getting fee happy and charging for everything they can.

Find Your Hidden or Unclaimed Money

If you need cash to pay bills or just live a little better, you may be able to find hidden money that you might not know about. Many people have assets they over look or have just forgotten about. You can think of it as a treasure hunt that may pay off. Each person should do a quick check of the following list to see if they may have hidden cash. When you are searching, check for yourself and family members, living and deceased, you never know what could have been forgotten.

1. Unclaimed cash from states where you or family members have lived in the past. Check out National Association of Unclaimed Property Administrators to search states for unclaimed money. Or check out Missing Money, this is a free service.
2. If you have moved from different states, go back through your records for old bank accounts, brokerage accounts or old employers that may not have been closed or have balances. Contact these institutions directly to check about unclaimed balances.
3. If you had money in a failed bank, check out the FDIC website for unclaimed money.
4. Did you or you children have savings bonds that may have been forgotten. Check out this US Treasury website to look for forgotten bonds.
5. Did you ever work for a company that had a pension plan that you might have forgotten about? Check out the Pension Benefit Guaranty Corporation
6. Do you have a life insurance policy that you no longer need? Check into surrendering the policy or selling it to get a life settlement.
7. If you have a structured settlement or lottery winnings that you are receiving periodic payments, you can sell these future payments for a lump sum. Many times you can sell all or just part of the future payments.
8. Did you own a home? Check into a reverse mortgage. Generally these are only available to seniors who have paid off their homes and have substantial equity to tap.
9. Do you own an annuity that pays you out over time? Check into surrendering the annuity if you have this option but watch out for surrenders charges. If you can not surrender the policy, check into selling the annuity.
10. Did you own a business? Check into getting cash for you receivables, otherwise know as factoring.
11. Did you sell real estate or a business and take back a note that the buyer still owes you money? Check into selling that note.

While there are asset locator services who can assist in finding unclaimed moeny, you can do most of the research yourself and save their fee of 10 to 20%. As always, be very careful to protect your personal information and only use trusted firms or websites.c

For more information about selling your financial notes, please go to MyNoteMarket.com

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

Is a Reverse Mortgage for You?

It seems reverse mortgages are getting more popular in these difficult financial times but does the benefit out weigh the potential cost? Yes, you do get a portion of the equity now to pay bills or use for any other propose and you get to stay in your house. These two benefits may be the only things that matter to you, if they are, a reverse mortgage may be the financial help you need.

But if you dig a little deeper, you’ll find additional upfront costs to get and maintain the reverse mortgage. And if you are concerned with maintaining your Medicaid benefits, you should get good legal advice before going down the reverse mortgage path.

Check out this article about reverse mortgages from BankRate.com. It provides a get overview of pros and cons of reverse mortgages.

Alternatives to a reverse mortgage may include:
1. Home equity loan
2. Downsizing to a smaller home or condo
3. Selling an annuity you may own
4. Selling a life policy you no longer need

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

By John Weimer, CFA

For more information, please go to MyNoteMarket.com