Learn How Your Structured Settlement, Or 401K Can Help You!
For individuals who have a structured settlement, or 401K, there may be a solution available to those who are currently seeking financial assistance, and who are experiencing hard times. Today’s economy and credit crisis along with rising unemployment rates have left many people wondering how they are going to bridge the gap, and continue to pay for things like tuition, mortgages, debt, and medical expenses.
Unscrupulous companies claiming to have the power to wipe away debt, reduce your mortgage, or get you a quick loan are preying on and taking advantage of nearly desperate individuals and their families every day. Unarmed with no real direction or advice on where to turn, many fall victim to scams that are targeted at lower and middle income families.
The good news is there alternatives to high interest loans, or borrowing money from friends and family. If you contribute to a 401K, receive annuity payments, or if you are collecting payments from a structured settlement, you can tap into these in the times of hardship and need.
Your Structured Settlement
A structured settlement may be one of the best ways to get cash that you need now without creating more debt, or incurring additional high interest loans that cannot be repaid or are unaffordable. Although a settlement cannot be altered once it has been agreed on, you still retain the right as set by congress to sell your settlement payments either in part or wholly. A structured settlement agreement may have been ideally planned in the beginning, but a change in circumstances with one’s job, home, and or family can create an unforeseen expense or need not previously anticipated.
When you choose to sell your future payments from a structured settlement you can get a large lump sum of cash to use for anything you need. It is not a loan and therefore does not require a credit check or repayment. At a time when possible loss of a family home due to foreclsoure is imminent, cashing in on the money you previously agreed to wait for can be one of the single best possible sources of the money you need now to save your home and get back on track. Medical expenses, debt, and tuition are amongst the most popular reasons for most people to sell their settlement payments.
Selling structured settlement payments is not as daunting as some would think. Typically you can have your money in as little as 90 days. Finding the right company to buy your structured settlement payments is the biggest challenge. It is important that you find out how much your future payments are worth by getting multiple quotes. Remember that all of your future payments are not worth the same amount. Inflation, interest rates, and the time value of money all play a role in a company determining how much they are willing to pay to purchase your settlement payments.
It is a good idea to research each of the companies you contact and contemplate doing business with. Speaking to a representative and asking questions is the best thing you can do for yourself. You should be prepared to ask questions relevant to your situation. Letting the company know why you are seeking to sell your payments and how you intend to use the proceeds form the sale, will allow their representatives to provide you with various options available to you.
For more information on how to sell your structured settlement to to get a free quote visit www.woodbridgeinvestments.com you can also call toll free 1-866-865-7044. You can call24 hours a day 7 days a week.
Your 401K
If you are experiencing a temporary hardship or you are facing foreclosure, you can use your 401 to get cash to help bring your mortgage current and out of foreclosure. You can choose to make a early withdrawal or get a loan against it’s value. There are pros and cons to these actions that should be carefully considered before making your decision. Unlike applying for a traditional loan there are no credit checks and there is not lengthy paperwork process. Typically you can arrange a loan through your 401 with as a little as a phone call and a small stack of paperwork.
The downside to this can be the stiff taxes and or penalties imposed when taking a loan or early withdrawal and can vary depending on which you choose and how old you are. Make sure that you speak to a financial professional or contact the IRS directly to learn about your rights, and how your age will affect rates, interest, and penalties.
Here are some 401 Loan Basics
Plans typically allow you to borrow 50% of the amount in your plan, up to $50K. With the exception of loans taken for a mortgage for your primary residence, nearly all loans must be repaid in 60 equal monthly payments over a five year repayment period. The interest rate you pay will be determined on the day you take the loan and using the “prime rate” plus one percent. The “prime rate” can be found in the business section of your newspaper. Repayment of a plan loan is made through payroll deduction, only a few companies allow you to pay in any other way. You can always repay your loan at any time with no penalties.
WARNING: The consequences of a plan loan default are different than for other types of loans. If you fail to pay the plan loan, you will have to pay both regular federal and state income taxes. If you are under age 59 1/1, and additional federal income tax equal to 10% of the outstanding balance will be added.
To find out more about your 401K visit www.401k.org
If you have questions or concerns about you potential tax liabilities contact the Internal Revenue Service at www.irs.gov or follow the links below.
Call The IRS With Your Tax Questions
Live assistance is available Monday through Friday. There is also a 24 hour recorded assistance line for your convenience.
IRS Taxpayer Assistance Centers for when you believe your issue is best handled face-to-face. Hours of service and other local information is provided on a per state basis.
IRS Mailing Addresses (”Where to File”)
For those who don’t file their federal tax returns electronically, the “Where to File” pages provide mailing addresses for filing all paper tax returns. You may also use your appropriate “Where to File” address for other written correspondence with the IRS.
Contact Us for Status of Your Refund
Want to check on the status of your refund? You can check online with the Where’s My Refund application, or call 1-800-829-4477. (Please wait at least four weeks before calling.)
Contact Your Taxpayer Advocate
If you have an ongoing issue with the IRS that has not been resolved through normal processes, or you have suffered, or are about to suffer a significant hardship/economic burden as a result of the administration of the tax laws, contact the Taxpayer Advocate Service.
If you are among the thousands of Americans receiving periodic 
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