Chances are if you have business with an advanced funding firm, you know exactly why you're there; you want cash today in exchange for your future payments. But this does not necessarily mean that you are familiar with or comfortable using the terms the company you are interacting with is proficient in This is the buzzword guide to advanced funding terminology to help prepare your for your transaction.
An annuity is an insurance contract in which a person receives fixed payments over a defined period of time, usually a lifetime. An annuity allows people to build substantial funds for retirement, and plan for future generations. You can also receive an annuity in a legal settlement, often called a structured settlement. As the annuitant, you are the person entitled to receive the annuity payments. These payments are generally deferred payments scheduled over a long period of time.
A Structured Settlement May Be What You Need
By Ken Austin A structured settlement is usually an annuity set up for recipients of a financial award, normally due to litigation involving an injury or accident. If you are receiving periodic payme..
By Ken Austin A structured settlement is usually an annuity set up for recipients of a financial award, normally due to litigation involving an injury or accident. If you are receiving periodic payme..
Often, people feel locked in by their annuity, and realize they need flexible options fast. This is where advanced funding comes in. You can sell your annuity for a lump sum payment or cash now. Funding companies like JG Wentworth [ http://www.jgwfunding.com] specialize in purchasing annuities and structured settlements. Funding companies will step into your shoes, and accept your deferred settlement payments in exchange for an immediate lump sum payment. This is called liquidity, or the ability and speed with which a security can be turned into cash you can use now.
This terminology is often difficult to understand if you don't come from a financial background, but familiarizing yourself with them is essential before making any economic decisions. While everyone would love to know exactly how their finances will pan out in the future, it is impossible to foresee obstacles that will occur in the future. Educate yourself on the numerous possibilities available before completing financial transactions that will impact your future.
About the Author:
An Annuities Primer
By Bill Willard Annuities are longterm investment tools for supplementing retirement income. There are no IRSimposed annual contribution limits, and annuity earnings grow taxdeferred until the fun..
By Bill Willard Annuities are longterm investment tools for supplementing retirement income. There are no IRSimposed annual contribution limits, and annuity earnings grow taxdeferred until the fun..
Nina Nocciolino is a copywriter for DMi Partners [ http://www.dmipartners.com], an interactive marketing firm specializing in higher education, real estate, retail and finance.