If you are receiving structured payments, you may ask yourself “how do I sell my structured settlement for cash?” There are many different options when it comes to selling your annuity, but it pays to do your research. Whether you have lottery payments or a structured settlement, it may be a good idea to get the cash.
Think About the Options
Before you sell a structured annuity, think about all the decisions thoroughly. According to the CEO of J.G. Wentworth, selling the settlement is a great financial decision. If you decide on an immediate annuity option, you can start receiving payments within 30 days of signing the paperwork. That will give you quick access to the money.
On the opposite end of that, 70% of lottery winners lose or spend all their money in less than five years. So think about if you can handle a lump sum and whether you would be able to control spending habits. Take a good hard look if having a large amount of cash would benefit or harm you.
If you have decided to sell, get quotes from several firms who offer cash for your settlement. Annuity fees can be as much as 3%, so there is potential to lose money if you do not receive a low rate.
While you are shopping around, make sure to get all the disclosures upfront, and read them thoroughly. While going through the paperwork, ask questions about fees, the guaranteed payout amount, an timing commitments.
Get the Sale Approved
Once you decide on a company and have read all the fine print, the annuity settlement needs to be approved by a judge. An attorney will file the necessary paperwork and a hearing is then scheduled. If all the paperwork is in order, the judge will most likely to approve of your request.
Collect Your Money
After the judge approves the sale, the transaction order is sent to the company and the funds can be wired to your account. This process can take as fast as 30 days or up to 45, depending on the different companies involved. Once you have the money, you will find yourself saying “I’m happy I was able to sell my structured settlement for cash.”