Archive for August, 2009

Using a Pre-Structured Settlement Loan As an Investment Tool

How You Can Use a Pre-Structured Settlement Loan As an Investment Tool

injury lawsuit may take such a long time to settle, plaintiffs with plans to invest might want to apply for a pre-structured settlement loan before investment opportunities pass them by

A Pre-Structured Settlement is Not Only For Hardships

Plaintiffs often think that a pre-structured settlement loan is only for those who are facing financial hardships; they are mistaken. It is possible for any plaintiff to use a lawsuit loan during his pending lawsuit as an investment tool. The plaintiff can use the money in various ways; however, like all other types of investment, there are risks involved. The plaintiff has the benefit of not being required to pay back the settlement loan in the even that he loses his lawsuit. So, even if he loses both his case and his investment, he would still break even in the end. However, if the plaintiff wins his case but loses his investment, he is out the original investment amount. With so much at stake, plaintiffs must understand all the risks before applying for a lawsuit settlement loan, as an investment.

Cash from The Settlement Can Be Invested in Whatever You Desire

The cash from a lawsuit settlement loan can be invested in any endeavor the plaintiff can think of. During the 2008-2009 housing market collapse, houses cost 30-40% less than they used to in 2006. Some plaintiffs took advantage of this and purchased homes, putting a large down payment or even pay in full. Since a lawsuit could take years to settle, by the time the plaintiff actually receives the money from his settlement, housing prices might have started to rise again making the plaintiff wish had applied for the loan when the opportunity presented itself. While housing prices are still low, plaintiffs planning to buy a house might want to take the calculated risk of getting a pre-structured settlement loan.Plaintiffs have also begun using settlement loans to get into the stock market. Of course, there is always the risk of losing money, however if they turn a profit, not only do plaintiffs recover their original investment, they can even cover the interest and fees attached to their settlement loan and have some money left over. This maneuver though may be best left to those who have a firm grasp on the stock market.

Start a Business with Your Cash

Plaintiffs can also use a lawsuit settlement loan to start a new business, it’s an excellent way to get the start-up cash they would need and prevent them from having to find investors or take out a traditional loan; remember, the money from a settlement loan is yours and you’re not actually borrowing money, you’re just getting your money advanced to you via a settlement loan in return for interest on the advanced amount.

Categories: Articles, Cash Structured Settlements, Sell Structured Settlement Payments, Woodbridge Investments LLC, lump sum payments.

Finding the Right Structured Settlement Buyer

How You Can Find The Right Structured Settlement Buyer

The most difficult phase of selling a structured settlement has to be choosing the best offer. The advertisements many buying companies use to entice clients tout fast cash for little hassle. Contrary to their claims, years of misuse of funds compelled the government to impose protective restrictions when selling structured settlements. This does not mean that selling has become impossible, only that it now requires more coordination on the part of the buyer and seller.

Because of some dire financial need, you may be convinced that your reasons for selling your structured settlement are justifiable. However, the court system may question the necessity of such an extreme action. Therefore, it is in your best interest to hire a lawyer to assist with the sale. A highly skilled lawyer can help by suggesting a fair market value for selling the settlement; reading over the buyer’s quote and the subsequent sale contract; and of course, representing the seller in court.

How To Avoid Untrustworthy Buyers

There are countless buyers who want a piece of the structured settlement market. Whether their offers are legitimate or not, their crafty salesmanship paints such a dazzling image that makes choosing quite a challenge. But by keeping an eye on telltale signs, sellers like you can avoid the untrustworthy buyers.

1.    Structured settlement buyers will profit from buying the structured settlement. Shifty buyers can be avoided by carefully listening to their sales pitch. If they try to convince you to cash your entire structured settlement or attempt to offer a considerably lower quote than expected, beware.

2.    Check with the Better Business Bureau (BBB) if the buyers you are considering have any negative records with them.

3.    There are costs involved in cashing in a structured settlement, including the court costs to meet with the judge. Some settlement buyers will pay those court costs and any fees involved, and some won’t. Check around.

By doing some simple research…

you can ensure that the structured settlement buyer you have chosen has both the knowledge to work through the selling process, and the integrity to consider what would be in your best interest.

Categories: Blog, Buyer of Structured Settlement Payment, Sell Structured Settlement Payments, Woodbridge Investments LLC, lump sum payments.

What To Do If/When You’ve Won The Lottery

So, You’ve Just Won the Lottery: What Now?

Lottery winners usually have a difficult time adjusting to the lifestyle that comes with sudden wealth. Here are some tips that aim to help them cope with the unwanted attention and dilemmas that result from winning the lottery.

Tips For Lottery Winners

1. Protect your winning ticket. Until it is time to bring it to the lottery commission, keep your ticket in a place where it’s out of reach from other people and safe from spills and other damaging accidents.

2. Tell no one outside your closest friends and family. Confide in people whom you know can keep a secret and who are not greedy or manipulative.
3. Meet with a lawyer. A lawyer can guide you through the legal issues winning the lottery can raise.

4. Rent a hotel room with cash and under an assumed name. This will spare you from the incessant pestering of the press and all your new “friends”.

5. Confirm the ticket with the lottery commission.
6. Meet with an accountant.
7. Go on a one-month vacation. Not only will this protect you from excessive press and public attention, the time off will give you the opportunity to carefully plan your purchases.
8. Calculate your interest. Ask a financial advisor about the interest that can be generated from various investment options and then budget your “disposable income” according to how much you earn in interest each year.

9. If you feel the need to give, find people and organizations you truly want to help and focus your generosity on only them.

10. Pamper yourself. Set limits though. You do not want to keep spending on your whims till you suddenly realize there’s no money left.

Categories: Blog, Lottery Payments, Woodbridge Investments LLC, lump sum payments.

The Good and Bad Of Selling a Structured Settlement For a Lump Sum

Structured Settlements for a Lump Sum; The Pro’s and Con’s

The option to sell structured settlements for cash must not be taken lightly. These periodic payments could be funds you have become dependent on to some extent, and selling will stop those payments. But if you need a large amount of cash to fund an investment that will change your life for the better, selling all or part of your structured settlement may be more useful to you than hanging on to the periodic payments.

So before selling a structured settlement, weigh the transaction’s pros against its cons first to make sure that what you’re losing is expendable when compared to what you’re gaining.

Pros:

• Liquidity. A structured settlement limits the liquidity of the settlement money that you are entitled to, whereas cashing in a portion or all of a structured settlement frees that money for immediate use.

• Value. You can capture the current value of the money that you’re owed. Because structured settlement payments are equal each month, the effects of inflation decrease the real value of your money over time.

• You don’t have to wait for credit approval. Although you may need to validate your reasoning for cashing a structured settlement, you can’t be denied your settlement because of a bad reference or credit history.

• Relatively quick payment. Compared to applying for a loan, structured settlement factoring is a faster way to get cash, taking as little as three weeks.

Cons:

• Structured settlements and annuities are sold at a discount, which means that the lump sum you get through the sale is less than what you would have received had you continued to accept periodic payments.

• Low regulatory involvement. Structured settlement buyers belong to an industry that is currently unregulated. Unscrupulous companies and individuals exploit this fact by engaging in unethical business practices.

• Taxes. You’ll be charged an excise tax that can be as high as 40% if you choose to cash a settlement for an invalid reason. You will also incur liability for state and federal taxes on your lump sum.

• Legal aspects. Structured settlement factoring is a long process that has exhausted many people who have tried it. There is a lot of red tape to pass through before the money will be seen, and some settlements legally cannot be sold.

Categories: Articles, Buyer of Structured Settlement Payment, Cash Structured Settlements, Sell Structured Settlement Payments, Woodbridge Investments LLC, lump sum payments.

Smart Decisions When Planning Your Settlements

Planning Your Settlements Smart

If you are an injury victim, you probably know that reaching a settlement can be a long and tiresome process. But once an agreement has been reached, you must carefully plan to shelter your money.

What many people do not realize is that, with the help of a qualified settlement planner, there are many ways to increase the value of a settlement.

Factors to be considered when formulating a settlement plan

Laws that involve Medicaid, Medicare and ERISA. In many situations, creating a trust – a Special Needs Trust or a Medicare Set Aside Trust – is compulsory. Tax concerns, property concerns, and resolutions related to investment issues also need to be addressed when planning a settlement.

Further complicating matters is the fact that public benefits provided to injury victims such as Medicaid and Medicare can be lost if not planned in advance. Studies show that more than 90% of injury victims have cleaned out their settlement money in just five years.

You must therefore have a structured settlement agreement that provides just enough so you will not be tempted to overspend. Since every injury case is unique, your settlement plan must be designed to fit your needs.

Pay Attention to Detail!

Understand every detail of your case so that you can make sound decisions when faced with issues involving settlement planning, taxation, preservation of public benefits and lien resolutions.

A thorough understanding of your case combined with the services of a skilled settlement planner can make your money go a long, long way.

Categories: Blog, Buyer of Structured Settlement Payment, Sell Structured Settlement Payments, Structured Settlements, Woodbridge Investments LLC.

Tips on How to Get Out of Debt

In Debt? Here’s Some Tips on How To Eliminate Your Debt

When trying to get out of debt, there are so many quick fixes that may seem to work at first but will sooner or later degenerate into a new and even worse problem.

Dos and Don’ts When Struggling to Get Out of Debt.

• Avoid the temptation to apply for payday advance loans as long as you have other options. It is a quick fix that can turn into a problem even worse than the one you were trying to solve in the first place. Exhaust all other options first: family, friends, home equity, Debtors Anonymous, etc.

• Splurging and getting into debt can be a self-destructive habit just like alcoholism or any other addiction. Seek professional help if you think you may have a problem.

• Do not cancel all your credit cards because this will shorten the length of your reported credit history and make you seem less credit-worthy. It is normally best to keep older cards and get rid of newer ones. However, still take your different rates into account before you finalize any cancellation decisions.

More Tips to Stay Out Of Debt

• Beware of low-interest balance transfer credit cards. Their default rate will usually get you into more debt.

• It is best to pay off cards and the balance owed in full. If you pay less than 100% than what you owe, that account will reflect negatively on your credit report.

• Refrain from giving too much personal information to collection agencies or you might end up saying something self-incriminating that will be put on record.

• If you decide to go to debt settlement companies, select one that is a registered member of the Better Business Bureau (BBB) and that have a history of little or zero complaints.

Categories: Blog, Cash Structured Settlements, Structured Settlements, Woodbridge Investments LLC, lump sum payments.

Annuity Protection, How You Can Keep Yours Safe!

How You Can Keep Your Annuity Safe

Unless you keep your annuity safe from inflation, the payments you receive today will be worth a lot less in a decade or two. Although inflation has averaged less than 3% since the 1990s, it is unwise to assume it will remain to be that low. You may be wondering how inflation affects annuities.

How Inflation Affects Your Annuity

As an example, say you currently have an annuity that pays $1,000 per month. Should prices rise 2% yearly, then the value of $1,000 ten years from now is the same with the value of today’s $820. Just imagine the further drop in value after another ten years.

You can protect your annuity from inflation by going with an option called indexing. Your payments will be much lower at first, but they will increase if prices rise.

You could receive 30% to 40% less in the first few years of your annuity. At first, such an option seems unattractive and some people are convinced they will not live long enough for inflation to take its toll on their annuities.

Then again, there is always the danger that they might be wrong. To lighten the negative consequences of both scenarios, some people place half their money into an annuity with inflation protection and the other half into one without it.Before committing to any one option, make sure you understand how inflation affects you in particular and what level of protection suits your unique situation.

Categories: Annuity Payments, Blog, Woodbridge Investments LLC.

How Lottery Winnings Work

Lottery Winnings, How Do They Work?

A lottery winner usually receives his prize as a series of deferred payments for many years. Sometimes, a winner who needs immediate cash might opt to sell his lottery payments to company who will give him a lump sum of cash. While most states restrict the sale of lottery winnings, Texas, Washington, Virginia, New York and New Jersey are some of the few states that permit court ordered transfers of lottery winnings.

How Long is The Process?

Normally, the transfer process takes 6 to 8 weeks and winners are given the freedom to choose if they want to sell all or just part of their future lottery payments.There are companies who are in the business of buying and selling lottery payments. Most of them prefer a lump sum purchase of a lottery payment. Others employ a customized payment schedule to cater to the needs of the seller.

These companies take into account your current financial standing and your future needs to come up with a customized payment plan.

If you are planning to sell your lottery payments you have to produce the following items:

•   A lottery award letter obtained from the state lottery commission
•   A duplicate of your most recent lottery check
•   A copy of your most recent tax return
•   A passport-size photograph

•   Identification documents
•   Copies of your marriage license or divorce decree
•   Copies of all documents pertaining to your bankruptcy discharge Copies of any other documents related to your lottery winnings

Categories: Blog, Lottery Payments, Woodbridge Investments LLC.

Court Approval in Selling Structured Settlements, Why is it Important?

A Court Approval for your Structured Settlement is Important

When you decide to sell a structured settlement to get a lump sum now for whatever reason, you will have to obtain court approval as dictated by law. The judge will look at the proposed transaction to make sure that you are going to benefit from the sale and will also try to determine the impact it has on anyone who is dependent on you. This may seem like the court does not trust you to have enough sense to handle your own finances, but it’s actually for your own protection.

Companies and Court Approvals

There are plenty of unscrupulous companies out there who aren’t always above board when trying to buy structured settlements. When you decide to deal with a sound company with years of experience though, your time in court will be short.

An honest and reliable structured settlement company should be right there with you in court at all times and will do whatever is necessary when the court requires changes to the terms of the agreement. So in this case, going to court is a good thing all around.

It will get the money you need into your hands much quicker than would be possible under your original settlement terms.

Categories: Blog, Buyer of Structured Settlement Payment, Cash Structured Settlements, Sell Structured Settlement Payments, Structured Settlements, lump sum payments.

Why Stars Go Bankrupt After Making Millions

Celebrities Who Have Gone Bankrupt Due to Bad Splurging Habits

What do Burt Reynolds, Kim Basinger, Gary Coleman and MC Hammer have in common?

They are but a few of the many celebrities who filed for bankruptcy at one time or another. Last July 21, 2009, Stephen Baldwin name was added to this infamous list of celebrity debtors. As a guilty pleasure, we follow their stories, click our tongues and wag our heads at their meteoric fall from grace. Like vampires we drink in every sordid detail of celebrity debts while wondering, “How could they have blown such a huge amount of money?”

Spending Money Lavishly Sometimes Can Be a Downfall

Celebrities usually make a lot of money in a small amount of time and they get this false sense of security that they will always be able to the jobs needed to feed their luxurious lifestyle.

Of course, one $35,000 watch does not automatically spell celebrity bankruptcy — but it could be the first step towards that direction. If celebrities develop a habit of spending more than they are earning, that is when splurging becomes a serious problem. Apparently, when MC Hammer sang “Can’t Touch This,” he was not singing about his money. The famed rapper’s forty-member entourage outspent his $33 million income on lavish day-to-day living.

Categories: Annuity Payments, Blog, Structured Settlements.