by Structured Settlement Watchdog
Annuity.org claims that "The difference between what your annuity is worth and what you’ll receive in cash is a called a discount rate". A discount rate is a percentage rate used to convert future value to present value. The Annuity.org boneheads can't even articulate a critical factor to a calculation that is intrinsic to their business and the business of their clients. But then a fleeting wisp of hope followed by utter disgust.
"Both the buyer and the seller have a role in negotiating this percentage. The average discount rate is 12%" says Alanna Ritchie of Annuity.org, who is not the most reliable of writers, in my opinion. The paradigm has changed. Discount rates between 4.5%-6% are possible so if you're looking to avoid excessive payments being sucked out to sea with the current, stay away from the "rip off tide". 12% is nowhere close to a bellwether rate that sellers should shoot for.
I was recently contacted by an annuitant who did the right thing and shopped around on his own as an educated consumer. He was selling a substantial amount of payments and negotiated the deal down to a 4.4-4.5% discount rate . Given the size of the deal, the rip off "average" rates cited by Alanna Ritchie and Annuity.org as average would have cost the seller big money.
Annuity.org barfs content that purports to be about structured settlements to generate leads for its structured settlement factoring partners. As I've shown time and time again, content published on Annuity.org about structured settlements is often riddled with inaccuracies. For years Annuity.org's exclusive structured settlement partner was CBC Settlement Funding.