Unique Investment Opportunities Through Structured Settlements
Friday, June 12, 2015, 6:00 AM | Leave Comment
If you are an investor looking for wealth-building opportunities that are safe, secure, and guaranteed, structured settlements are vehicles to consider. Traditional investments are risky because they are impacted by economic conditions such as recessions.
Rates of return go up and down depending on the global economy, but structured settlements are different.
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Structured Settlements
The individuals who receive settlements from lawsuits or win lottery jackpots are referred to as annuitants. Annuitants receive their financial payouts in scheduled installments, but sometimes these individuals need large lump sums of cash, rather than the incremental payments.
For example, annuitants may need lump sums to:
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Buy a house
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Pay for college
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Cover medical bills
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Handle emergencies
Because the annuitants need their payouts in one large sum, they are willing to offer investors income streams from their structured settlements or lottery winnings.
These individuals sell their settlements and lottery annuities to funding companies at substantial discounts in exchange for the lump sums they need.
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How the Legalities Work
You may wonder about the legalities involved with structured settlements and lottery annuities. These investments are legally regulated in very formal manners.
For example, each case is:
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Reviewed by a judge
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Signed by a judge
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Bound by a court order
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Rates of Return
An investor can expect a substantial rate of return for a consistent period of time and at a steady rate. These rates are reliable, because they are not tied to the economy.
Investors can expect returns:
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Of 4% to 8%
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For three to 40 years
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Guaranteed by Insurance Companies
Investors can feel secure about their structured-settlement and lottery-annuity investments because they are guaranteed by highly rated insurance companies.
These insurance companies:
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Are based in the U.S.
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Are rated AAA to A by major credit rating agencies
Another reason to feel secure about these investments is that the Federal Structured Settlement Protection Act provides strict guidelines over annuitants.
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Tax Considerations
The income from structured-settlement and lottery-annuity investments is usually taxed just like ordinary income, but this should be discussed with your CPA or accountant. Every situation is different, so tax professionals should always be consulted.
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To Make Investments
In order to invest money in these safe, guaranteed, and secure vehicles, contact a funding company that deals with structured settlements and lottery annuities.
Settlement specialists will:
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Send you a packet of information
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Contact you by phone
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Give you a list of the jackpot winners and settlement recipients currently available
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Stocks, bonds, IRAs, mutual funds, and other traditional investments can fluctuate depending on what is happening in the global and national economy.
Structured settlements and lottery annuities are tied to stable sources of income, so you can rely on 4 to 8% returns for the duration of your investment period.
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