Archive for November, 2009

Annuities Drive up American Equity Earnings

American Equity Sells More Annuities This Year

Annuity sales for 2009 topped $3 billion at American Equity Investment Life Holding Co., the company said Wednesday.

Due to uncompromising dedication to delivering quality products and services, the company has stepped up sales to meet increased demand for fixed-index annuities and other principal-protected products.

Changes in Market Compel More Americans to Buy Annuities

From third quarter 2008’s $572 million, annuity sales increased 71% to $980 million in the quarter. This growth can probably be attributed to the deep impact the volatility and market declines had on consumer attitudes in the last twelve months.

American Equity recorded an operating income of $28.2 million during the third quarter (that’s a 26% increase over the same amount of time last year) thanks to booming annuity sales. Operating income doesn’t include investment gains and losses in the quarter.

From last year’s net loss of $11.7 million, this year’s figure is looking up at $3 million. The net loss included $11.5 million of realized losses on investments.

American Equity claims to be taking steps to shore up its capital reserves to keep up its excellent rating by A.M. Best Co., including drawing down on its line of credit, restructuring commission payments and expanding reinsurance treaty.

The company also ceded $513.8 million of annuity premium to Athene Life Re under funds withheld reinsurance arrangements in the third quarter and raised $1.1 million by issuing 132,300 shares in the quarter.

Categories: Annuity Payments, Blog, Woodbridge Investments LLC.

New Hampshire Couple Hits Lottery Prize Twice in Four Years

Bob Jaracz of Nashua, NH has always believed himself a lucky guy. In light of the fact he has won the lottery twice, who can really dispute that?

Jaracz said he plays the lottery weekly. Like many other players, he picks the numbers quickly and randomly, and buys his tickets at random stores.

But unlike those other players, he’s hit the lottery twice for over a million dollars.

Winning the Lottery in 2005

The first time was on Thanksgiving Day 2005, when he won Tri-State Megabucks for $1.9 million.

Jaracz said that initially, it was hard to believe. Diane, his wife, said that with all the excitement of telling friends and family, they sort of forgot about the turkey in the oven.

“It was only a little dry,” she said.

The couple used the prize money to settle all their debts, repair their home, purchase a new car and go on some trips.

Winning the Lottery Again in 2009

Then, in late September this year, fate would smile on them a second time.

Jaracz won the Weekly Grand Game for a little more than $1 million. He said he always had the feeling like he was going to win again.

This time around though, Jaracz said he will be dedicating his good fortune to help the Humane Society, the Santa Fund, and other local charities.

When asked if he plans to stop playing the lottery, Jaracz replies, “No way. I think I’m going to win again.”

Categories: Blog, Lottery Payments, Woodbridge Investments LLC.

Flexibility of Selling Annuity Payments

Making the Most of Selling Annuity Payments

To make the most of the lump sum payment you get from selling annuity payments, you have to look up market prices by using various annuity trading websites. You also need to know that unlike highly liquid stocks, annuity trades take time to be completed and you may not get an immediate cash payout. The usual time it takes to sell annuity is around a month and a half. If you have a very pressing need for cash, then selling annuity payments may not be fast enough cash for you.

Selling Annuity Payments – the Option to Sell Just Portions

Annuities come with many different deferred payment plans so buyers can choose the payment type that best suits their specific financial needs. However, buyers sometimes choose unwisely and wish they can change their minds. Instead of selling annuity payments in their entirety, these people have the option to sell just portions of their payments and retain future payments for security’s sake.

Selling Annuities is Better Than Getting a Loan

The option to sell annuity payments is what makes annuities a significant investment tool for retirees. In case of financial emergencies, they can still cash out their annuity to cover such expenses. Unlike taking a personal loan, selling annuity does not involve problems involving interest and security. The lump sum cash gained through selling annuity payments can be used for almost anything from paying for a child’s tuition to helping a family member who’s in debt.

When people need money in times of financial difficulty, they usually think of applying for loans and forget that they can sell their annuities and insurance policies. These have gain value because of regular payments and interest compounding. It is only fairly recently that people are starting to become aware of the possibility of selling annuity payments for a lump sum.

Watch out for Slimy Annuity Payment Buyers

Keep in mind though that when you invest in annuity, it is with the intent to secure your financial future via a stable income stream. When you are presented the opportunity to make higher returns but need more capital to be able to do so, cashing out your annuity by selling the payments is a very viable option. Before committing to any one buyer, be sure to perform a background check. There are too many fraudulent annuity payment buyers out there for you to take such a transaction lightly. If you are uncertain if the offer is worth your annuity, consult a financial expert. They will calculate a reasonable market price for your annuity and help you avoid selling to dubious buyers.

Categories: Annuity Payments, Articles, Woodbridge Investments LLC.

“I Want To Sell My Annuity to Refinance Home Loans!”

Why People Want to Buy Annuity Payments

Annuities are designed to take present value of a specific amount and distribute payment of that amount out over a period of time. Payments are made at the end of each period, as determined in the contract (i.e. monthly, yearly).

As it relates to payments of the annuity, this amount is determined or approved by the courts. These annuity payments contracts are regulated by various jurisdictions, and most states have laws on how structured settlements can be sold to companies that buy annuity payments.

In cases where money is put into an account to secure an income stream for the future (such as retirement annuities), the annuity has two phases

1. the deferral phase – where contributions are made to an account to accumulate money
2. the annuity phase – where payments are made to the annuitant, or beneficiary, from this account

Look for People Who Buy Annuity Payments and Get Cash

Depending on the type of structured annuity contract you have, you may be able to get cash for future payments by transferring your rights to companies that “buy” annuity payments. Such a transaction provides you liquid money for your current needs. Because of the effects of inflation on the time value of money, it may be best that you cash out your annuity.

Financial consultants can analyze your total financial situation and explain all the options available with your specific annuity, so you can make the best decision for yourself.

Categories: Annuity Payments, Blog, Woodbridge Investments LLC.

Look for Companies That Buy Lottery Payments For Cash

Why Look for Companies That Buy Lottery Payments for Cash

Winning the lottery can change anyone’s life. One of the most important decisions a lottery winner has to make is whether to take the lump sum payment or annual payments. The answer is really a risk premium and a mathematical question. Do you think you can do a better job investing your lottery winnings than your lottery commission can? When you choose annual payments, the lottery commission is in charge of investing your money.

They will make sure that you that you will earn a certain amount of money each year over the life of your lottery annuity payments. They are banking on the fact that they can invest lottery premiums and earn a better return than you could on your own. Another option is to shop for companies that buy lottery payments for cash and choose the best offer. If the prize winner is not investment savvy, he or she can get the services of a competent financial professional.

Sell to Companies That Buy Lottery Payments for Cash – It’s a Smart Financial Move

There are many companies that buy lottery payments for cash as a business. They can offer alternative cash flow funding with lump sum cash buyouts for your lottery winnings and structured lottery annuity settlements.
If the winner wishes flexibility and control of his or her money, selling lottery winnings is the best option.

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

How to Sell Your Lottery Payments

“I Want To Sell My Lottery Payments – But How?”

Lottery prize winners receiving payments over time may be able to convert all or part of their future payments into an immediate lump sum cash payment.

Though some states prohibit assignment of future lottery payments, certain conditions can lift this prohibition. Such conditions include bankruptcy, the splitting of assets required by a divorce, and the need to fund a major medical procedure if you would like to sell lottery payments

Need Lump Sum Cash Now?

If you need a lump sum now but want to keep receiving part of your annual payments, you can choose what is called the “split payment option”. Under this option, you literally split your future lottery payments into two parts. One part is given to you as the lump sum you need now while the other part is given to you on your periodic/annual payment day.

The sale of lottery prize payments takes about 2 to 3 months to complete. The process cannot be any shorter than that because you have to get a court order instructing your state lottery commission how the original payment arrangement should be amended.

Since the tax treatment of a lump sum gained through the sale of lottery prize payments varies from case to case, it is best to consult with a tax adviser.

Furthermore, since you need court approval for the transaction when you sell lottery payments, also seek the assistance of an attorney.

Sell Lottery Payment Companies – What To Look For

There are many companies out there who want your lottery winnings. You don’t want to accept the first offer that comes along when there’s a company out there that’s willing to pay you top dollar. Compare the offers of many different companies. Look them up online and check with the Better Business Bureau (BBB) to see if they have a complaint-free record. Exercise prudence because a bad decision may leave you with a raw deal that you’ll regret for a long time.

Lottery payment buyers normally require the following information to provide you a quote:

•    The state in which the lottery prize was won
•    The exact amount that was won
•    The gross payment per year
•    The actual value of the check you receive each year (after taxes)
•    The exact annual payment date (month, day, and year)
•    The total number of payments for the lottery prize.

Sometimes, buyers can purchase future payments from winners who have won contests or prizes other than state lotteries. It depends on the specific language of the prize agreement. Some prize agreements clearly forbid assignment to another party. Review the agreement with a lawyer to see if future payments can be sold.

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

Sell Settlements Discount Rates & Inflation

When Periodic Structured Settlement Payments Are Not Enough…

Though structured settlements are an excellent way to receive compensations from a court claim, there are instances when being bound to such a settlement can prove problematic. If you feel this is the case, you ought to familiarize yourself with companies that purchase structured settlements and the options they can offer you.

Let’s say you were awarded a claim and are receiving it through a structured settlement agreement. However, a few years later you need a large sum of money to pay for an unexpected medical expense. You need cash right away, but the periodic payments you receive are too small and far between.

Sell Structured Settlement Payments for a Lump Sum

Fortunately, you have the option to sell future payments to structured settlement companies.

For example, if you need $15,000 to cover your unexpected medical expense, you can sell a portion of your future structured settlements worth that amount for cold cash. These companies were founded to purchase and sell structured settlements in order to help out the recipients of such settlements.

Sell Settlement – Legal Implications

Since structured settlement agreements are mandated by legal statutes, your agreement with a structured settlement company has to be approved with the ruling of a judge. To ensure the court approval of your application, go with a reputable and experienced structured settlement company that can convince the judge that the transaction serves your best interests.

Discount Rates, Inflation and Other Complications

Selling structured settlement payments involve a lot of complications. Some of the more significant of which are tax implications and inflation problems. Since structured settlement calculations take inflation into account, payments may need to be discounted to present value when they are bought from structured settlement companies. Furthermore, there is a ‘discount rate’, which discounts a small percentage from the rate of your settlement if you sell it early.

Do Your Research Before You Sell Your Settlement

Because of these and many other complications, you would do well to work with a structured settlement buyer that has years of experience and the patience to help you understand the process.

Whatever your reasons, if you think your structured settlements no longer fulfill your needs, you don’t have to hang on to them. You have the choice to sell them for a lump sum that is more suited to your financial situation. Now that you have the basic information of how to sell structured settlements, evaluate your next move and start looking for a structured settlement buyer who can offer you the best value for your future payments.

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