Rescue Capital Blog Your Money, Your Way

26Jun/12Off

Thinking about selling your annuity? Give it some thought

Posted by Dawn Anderson

Feeling uneasy about your money situation? You’re not alone. Many people feel exactly the same way. Sometimes it helps to get the advice of a financial expert to explain all your options and help you determine the best course of action. This is also true when you sell your structured settlement annuity payments. While selling the rights to your future payments isn’t for everyone, having a professional available to review your options can aid you in your decision.

Rescue Capital can answer questions about selling your annuitiesWhen you’re looking to sell all or part of your future payments in order to fulfill financial obligations the decision isn’t one that should not be taken lightly. The value of your money and the extent of your need to receive your funds ahead of the scheduled payments are primary factors. Sometimes it makes more sense to take your payments in a cash lump sum rather than borrowing money at a high interest rate.

Avoiding foreclosure and paying off debt are just a few examples of why you may need to get your payments ahead of schedule. Life changes and having a lump sum of cash can help you get through tough times. Since you can’t always plan for the unexpected, it’s always best to know your options. This is where Rescue Capital come's in.

There is more than one way to get cash from a structured settlement or annuity. For instance, it isn’t necessary to sell all of your structured settlement or annuity payments. In many instances your immediate financial needs may not require that you to do so. Selling part of your future payments could be more than enough to pay unexpected bills while continuing to receive your scheduled payments.

Again, it can be difficult to navigate through all of your potential options on your own. It is important to research what the possibilities are and seek the help from someone in the know. Rescue Capital, a firm that buys structured settlements and annuities, can clear up the confusion and cut through any potential red tape that you might encounter at sale time. The money that you were awarded in your settlement is legally yours so shouldn’t you use it in a way that works for you?

Call Rescue Capital 866.688.3532 today to learn more and to receive your free no-obligation quote.



21Jun/12Off

Bad credit not relevant with structured settlements

Posted by Dawn Anderson

When you’re suffering financially, waiting for payouts from a structured settlement annuity isn’t the most convenient way to get bad credit ok at Rescue Capitalmoney.  Clearly it would help if you can have access to your money sooner perhaps in a lump sum payment. Maybe you thought about looking into it before but delayed calling because you have bad credit and were afraid you wouldn’t be approved. The good news is that selling your future payments allows you to get the cash you need without borrowing money. It is not a loan it is a transfer of the legal rights to your future payments. So there is no money to pay back or credit approval.

The only way to improve your credit is to pay off your debt and selling your structured settlement could be the key to financial stability. Use the cash lump sum to pay off your credit cards or avoid foreclosure and invest the remaining funds to start earning interest for you. It is time to take control of your finances and reap the benefits of your money.

Working with Rescue Capital to sell your structured settlement for a lump sum has some benefits too. We can custom tailor the package to suit to your needs and goals. They can help you develop a plan to pay off your debts and work with your creditors to pay off the debts immediately. We’re also here to answer your questions without delay. Remember, the money is legally your property so why not use it to suit your needs.

You don’t have to sell you entire settlement. You can sell only part of your settlement, keeping some of your scheduled payments and have an influx of cash for your immediate needs. Cashing out your structured settlements can give you more financial freedom which is something everyone can use.

Don’t delay getting the facts about your financial situation. Call Rescue Capital today to discuss your situation and make your structured settlement to work for you. Call 866.688.3532 for your free no-obligation quote.



4Jun/12Off

Boston College’s Center for Retirement Research suggests using Social Security for Retirement

Posted by Dawn Anderson

The Center for Retirement Research at Boston College released a study stating that the best way for people to utilize their retirement income more effectively is to “buy” an annuity from Social Security. This statement, of course, is completely misleading and the whole concept should be investigated further[vi]

According to Pat Foley, president of U.S. life insurance distribution and marketing at Genworth Financial, approximately 10,000 people turn 65 every day and this will continue over the next 20 years.[i] As these individuals approach retirement age armed with only their 401k plans and Social Security as their only means of support once they stop working, there is a huge need to minimize risk while preserving wealth. Fluctuation interest rates as well as longevity are all issues to consider. Obviously, no one wants to outlive their savings or pay huge fees to protect their nest eggs but recommending Social Security as an option seems a little optimistic.

No one can “BUY” an annuity from Social Security. You delay claiming your Social Security benefit in order to get a higher pay out later. Instead you’re using your savings to support yourself. Here’s the one major problem with that. What if you spend your cash supporting yourself to hold off for the higher Social Security payout only to discover there is nothing left when it comes time for you to retire?

In their 2011 report, the Social Security Board of Trustees stated that by “2023, total income and interest earned on assets are projected to no longer cover expenditures for Social Security, as demographic shifts burden the system. By 2035, the ratio of potential retirees to working age persons will be 37 percent — there will be less than three potential income earners for every retiree in the population. The trust fund would then be exhausted by 2036 without legislative action.”[ii]

Therefore if you didn’t invest your money, decide to live off your cash and use Social Security as your annuity you could be in for a rude awakening come 2036. While annuities do have their faults—they’re expensive, underperformers and restrictive—for the most part they do provide risk adverse individuals with a guaranteed income stream.

Some products, like Indexed annuities, take hybrid approach from variable and fixed annuities because they have stability of a fixed annuity with the growth potential of a variable annuity. Indexed annuities have a loss provision which protects the nest egg even if the stock market goes down. Unless you make a withdrawal, the value of your annuity will not decrease. The insurance company invests most of the principal in bonds ensuring the policy generates a small annual return. In addition, the insurer uses a small portion of the premium to buy options in a stock market index such as the S&P 500. Options that are exercised can result in additional interest credited to a policy.  As the demand for more risk adverse products rise, insurers will create newer products with better growth potential. [iii]

Apparently other government entities believe that annuities would be a good investment vehicle for retirement. In July 2011, US Government Accountability office (GAO) put out a report stating purchasing an income annuity from an insurance company is “an alternative to self-managing periodic distributions from savings" because it protects retirees from underperforming investments, overspending as well as from the risk of outliving their savings. It also claimed that inflation adjusted annuities reduces the risk of diminished buying power. Also some experts dispute that claim.[iv]

Other things to consider

Some investments allow the investment to be passed on to heirs. Social Security survivor benefits are for spouses and dependent children as well as disabled children only. If your financial situation changes some investments like annuities are not easily converted into cash. Some can’t be cashed out without suffering penalties and some cannot be cashed out at all once you start collecting. While some annuities can be sold on the secondary market for a discount, some cannot. Social Security, on the other hand, can not be liquidated or sold.

When it comes to retirement savings you’re never too young to start saving. It is also important to consider asset allocation and getting professional advice. Asset allocation is not putting all your eggs in one basket so if things go wrong in one investment class you don’t lose everything. [v] If you rely solely on one type of investment, especially one that is extremely inflexibl,e you’re leaving yourself open to possible financial hardship in the future.

[i]http://rescuecapital.com/blogs/2012/01/genworth-re-enters-the-indexed-annuity-market/



30May/12Off

You have a structured settlement but you need cash…

Posted by Dawn Anderson

Chances are you’ve seen at least one “get cash for your structured settlement or annuity payments” commercial on TV. But do you know what a structured settlement is, how do you get one and how you can get cash today for your future payments?

A structured settlement is a financial arrangement that allows court-awarded compensation stemming from a lawsuit to be paid in regular installments rather than in one lump sum. The payments are paid over a fixed period of time or over the recipient’s lifetime. Some settlements may include a portion of the money to be paid as a lump sum payment, while others only offer periodic payments.

Structured settlements are often awarded to:

  • People with temporary or permanent disabilities
  • Guardianship cases involving minors or persons found to be incompetent and workers compensation cases
  • Wrongful death cases where the survivors need monthly or annual income
  • Severe injury with long-term needs for medical care, living expenses and family support

Although the reasons vary, people often sell their structured settlement payments for a cash lump sum to

  • Avoid foreclosure
  • Pay for medical care/bills
  • Make home repairs
  • Pay off high interest debt
  • Start a business
  • Put a down payment on a house
  • Buy a car
  • Continue their education
  • Pay taxes

A common underlying reason for selling future payments has to do with inflexibility of small stream of payments. Waiting for future payments doesn’t always work with your financial needs especially when you are struggling financially. That's why Rescue Capital is here to help. By purchasing all or some of your future payments for a cash lump sum payment, you can use the money the way you need.

Call Rescue Capital at 866.688.3532 to get your free no-obligation quote.