by John Darer CLU ChFC CSSC RSP CLTC
Some structured settlement purchasers will indiscriminately encourage annuitants to sell off the most immediate structured settlement payments for the biggest payoff. The result of taking the advice is that the structured settlement annuitant sacrifices current income when he or she may not be employed, or vulnerable, and has been "set up" to sell more payments. The cycle then becomes self defeating for the annuitant and a gold mine for the settlement purchaser. It is a situation that may cause an annuitant to look back with regret.
Just look at the advertising messages proffered by some of the cash now pushers...
- Cash today for a better tomorrow;
- Don't wait;
- Why Wait?;
I received a call from an annuitant today who at age 22 and married with 2 children, has sold multiple times already, and was seeking a purchaser for lifetime payments that commence 40 years out. Most 22 year olds do not have a viable retirement plan in place and as things stand this person, even after having sold most of his payments, STILL HAS a viable guaranteed income tax free retirement plan courtesy of his structured settlement. Getting between now and then is a question having sold all the other payments.
In my recent video " Selling Your Structured Settlement", one of the latest entries in our Structured Settlement Education Series, I discuss who is qualified to give you structured settlement advice.
Instead of the "really big lump sum" how about seeking qualified advice, doing what is necessary to meet your needs, still have income and the opportunity to make up for it?
I also encourage judges reviewing petitions for structured settlement transfers to be more vigilant about their reviews.