Structured Settlement Help
Structured Settlement Cash
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Structured Settlement Cash
How much cash can I receive?
One of the more frequently asked questions is regarding the amount of cash one can receive for their future payments. This is a good and a bit of a complicated question we will attempt to simplify and explain.Some of the primary factors that contribute to amount you receive include:
Number of payments remaining – First and foremost it will depend on how many payments you have in your settlement, it is a few payments coming due in a short period of time like a year or is it monthly payments that stretch out over twenty or thirty years.
Amount of payments – The amount of those payments is a factor, how much is each payment for?
How many you want to sell – Once the number of payments and the amounts are determined the next issue will be how many of the payments you which to sell for a lump sum. You have the option to sell as few or many as you want and this of course will effect the size of your cash payment. The more payments you sell obviously the larger the sum paid to you. It is interesting to note that most settlement recipients sell only some of their payments and not the entire annuity stream but this is completely dependent on the individual, their circumstances and their needs.
How far out are the payments you are selling? If you are selling payments that wont come due for twenty years those will be worth less in today’s dollars then payments that will come due in the next two years. Cash today is more valuable than the same amount in the future so closer your payments are to coming due potentially the higher amount you will receive for them.
The discount rate – Another very important factor that will determine how much you will receive in a lump sum is the discount rate.
There are many factors that go into the equation of a cash offer to purchase your future payments so be sure to talk with an expert settlement buyer that can help to educate you on your options and talk you through the process. The good news is once you understand how it all works the buyer will take care of the majority of the work make it as simple as possible for you to get the cash you need.
Number of payments remaining – First and foremost it will depend on how many payments you have in your settlement, it is a few payments coming due in a short period of time like a year or is it monthly payments that stretch out over twenty or thirty years.
Amount of payments – The amount of those payments is a factor, how much is each payment for?
How many you want to sell – Once the number of payments and the amounts are determined the next issue will be how many of the payments you which to sell for a lump sum. You have the option to sell as few or many as you want and this of course will effect the size of your cash payment. The more payments you sell obviously the larger the sum paid to you. It is interesting to note that most settlement recipients sell only some of their payments and not the entire annuity stream but this is completely dependent on the individual, their circumstances and their needs.
How far out are the payments you are selling? If you are selling payments that wont come due for twenty years those will be worth less in today’s dollars then payments that will come due in the next two years. Cash today is more valuable than the same amount in the future so closer your payments are to coming due potentially the higher amount you will receive for them.
The discount rate – Another very important factor that will determine how much you will receive in a lump sum is the discount rate.
There are many factors that go into the equation of a cash offer to purchase your future payments so be sure to talk with an expert settlement buyer that can help to educate you on your options and talk you through the process. The good news is once you understand how it all works the buyer will take care of the majority of the work make it as simple as possible for you to get the cash you need.
with No Obligation"