by Structured Settlement Watchdog
Shoot first, think later? Is that the questionable financial advice being dispensed by yet another member of the National Association of Settlement Purchasers?
A Fort Lauderdale based company recently published what might be described as an "ass backward" approach to finance, a list of things you should do immediately AFTER you have sold your stable income tax free structured settlement payments for pennies on the dollar in cash.
Making a donation to a charity is a way to give back to the community and spread your newfound wealth. Remember that for every annuity settlement won, there are plenty of other people who weren’t as fortunate. Do what you can to help others in need and feel free to give yourself a pat on the back while doing it"
- When you sell your structured settlement you are selling it at a discount. It is not newfound wealth. If you were to think like a cash now pusher and scrape the court records for structured settlement factoring transactions in Broward County, Okeechobee County and others you would discover that the discount rates are pretty high. In one Okeechobee County case last year a naive young man was shafted by another Florida based member of NASP for in excess of $1.4 million profit spread. He got $1.1 million for more $6 million in future payments. Is the Fort Lauderdale company referring to THAT sort of thing as newfound wealth?
- After "donating" that much to the settlement purchaser, the settlement purchaser wants you to donate to people less fortunate. One could very easily argue that if you sell your structured settlement payments you're the one less fortunate, having traded away your future for pennies on the dollar.
- Pat yourself on the back for shortchanging yourself and your family?
- If you like the idea of donating, donate out of 100 cent dollars not discounted dollars that you have been coaxed into selling when you didn't need to, by a cheap sales pitch. Remember the Fort Lauderdale company is dispensing advice for what you should do AFTER you sell. Ass backwards.
The last 3-5 years have seen an unprecedented level of aggressive business practices targeting vulnerable American consumers with structured settlements. Read our Factoring Company Bad Business Practices feed for a taste.
- You should not sell your structured settlement payments unless absolutely necessary.
- If you have to sell your structured settlement payments you should not sell your structured settlement payments without a clear plan up front.
An "ass backward approach" is funny, but it makes no financial sense