We often hear the same questions from those who are considering whether or not to sell their structured settlement or annuity, so, below you will find answers to some of the most frequently asked questions we get!
While everyone’s circumstances are different, most people choose to sell their stream of future payments for a lump sum now to address a financial crisis, purchase a new home, pay for educational expenses, deal with the loss of a job, address unexpected medical expenses, pay down debt that has accumulated, or to start up or fund a business. All of these reasons can be good reasons to consider selling a structured settlement or annuity, but, that decision must be made only after considering all of the other alternatives and options that exist.
When trying to decide whether to sell a structure or annuity, each and every person considering the sale of their structured settlement or annuity should consider what alternatives they may have to meet their current needs or desires without necessarily selling their structure or annuity. In the “Is Selling Right for You” section of this website, we identify a long list of alternatives that you should consider before deciding to sell your stream of future payments. You may have other alternatives that you have not considered, and, when they exist, they should be explored.
The simple answer to this question is “no, you do not have to sell all of your structured settlement or annuity.” There exist options like “partial payouts”, where you can choose to receive a single discounted lump sum payment now in exchange for selling only a specific amount or number of future payments that you would otherwise receive over time under your existing structured settlement or annuity contract. There are also “shared payouts,” where you can choose to sell off portions of future payments as they come to you over time, and receive a lump sum payment now for the value of those portions you choose to sell. Other options exist as we discuss in more detail in the “Is Selling Right for You” section of this website to help you understand what options exist for you.
Every company approaches the process of buying structured settlements or annuities in their own way, but most TV and internet-based companies simply provide you a “Free Quote”, and, then, when you accept their quote in writing, and the applicable “waiting period” or “cooling off period” per your State’s laws expire, they will then seek court approval to finalize the transaction and get you your lump sum. Many companies say they can get you “Money Now”, but the simple reality is that the sale of your structured settlement or annuity will require court approval that can take 4 to 6 weeks or more depending on how quickly the proper documents are gathered and how quickly the Court acts.
At Vantage Capital Consultants we do it differently. We provide free consulting services to those people who choose to work with us, and we ensure that every person who makes the decision to sell their structure does so with all the information they need to know they are making well-informed choices and getting a fair deal with no hidden fees or costs. We also ensure that everyone we work with is guided through the legal process by our legal team in an efficient and informed manner to avoid unnecessary delays and to ensure that they obtain their lump sum as agreed as quickly as possible.
For a more detailed discussion of how Vantage will guide you through your decision to sell your structured settlement or annuity, we would encourage you to go to “The Process” section of this website for more information.
Almost every state that permits the sale of structured settlements or annuities has laws which govern how such sales or transfer transactions must be done to be legally recognized and properly completed. While each state has its own rules, the laws are universally written to provide protection to people who may choose to sell their structured settlement or annuity. Because the marketplace for selling structures and annuities is largely unregulated, state legislatures have stepped in to try to ensure that fair practices and court approval are required by law whenever structured settlements or annuities are sold.
Select a company that is willing to take the time to answer all of your questions and work with you to explore all of your alternatives and options before you make your final decision to sell or not. It is easy to get a “Free Quote”, but it is much more difficult to determine if selling your structured settlement or annuity now is right for you, or if you have made a wise financial decision in light of your own personal circumstances. Do your homework, and hire a company of professionals that you know is giving you the information and tools you need to make your own informed decisions. If you are feeling rushed to make a decision to sell, only ever deal with telemarketers, or sense you are being pressured to sign a written agreement you do not fully understand or know to be in your best interest, then, you are probably not working with the right company for you.
At Vantage Capital Consultants, we pride ourselves on focusing on your needs while doing business the right way. For more information about us, check out the “Who We Are” and “What We Do” sections of this website. After learning about us, we hope to be of service to you. Contact Vantage now if we can help answer any of your questions to get you moving in the right direction.
- FDIC – the FDIC’s Money Smart for Young Adults curriculum helps youth ages 12-20 learn the basics of handling their money and finances, including how to create positive relationships with financial institutions. Money Smart for Young Adults consists of eight instructor-led modules, available FREE on CD, which offers in-depth presentations on banking, goal-setting, investing and more
- Jump$tart Coalition – The Jump$tart Coalition for Personal Financial Literacy, a 501-c-3 non-profit organization based in Washington, DC, brings together organizations that share an interest in advancing financial literacy among students in pre-kindergarten through college. Visit jumpstart.org for its comprehensive list of resources
- Junior Achievement – the homepage for the Junior Achievement USA program, where you will find information about JA programs, how to volunteer, and other helpful links including how to talk to your kids about personal finance
- MyMoney.gov – the U.S. Government’s website dedicated to teaching all Americans the basics about financial education
- National Financial Educators Council – visit this site for financial literacy statistics by the National Financial Educators Council. Browse the entire site for online literacy programs, curriculum for kids and more
- National Foundation for Credit Counseling – download this pdf document at NFCC.org to view the comprehensive 2010 Financial Literacy Report prepared for the National Foundation for Credit Counseling
- TreasuryDirect – the first and only financial services website that lets you buy and redeem securities directly from the U.S. Department of the Treasury in paperless electronic form. This link takes you to its page designed for kids and includes information and games to teach principles of finance
- AnnuityFYI – On this webpage, you will find information and advice on how to budget and save, no matter how old you are. Games are even included to make learning about money fun!