Boca Raton, FL--On March 8th, NY based Bulldog Investors wrote a letter to Imperial Holdings (NYSE: IFT) requesting the resignation of 2 independent board members or possibly face a proxy shareholder voting contest.
In recent months, Imperial, who purchases structured settlement annuity and life insurance policy payments for cash lump sums, has had some legal troubles. First, the FBI raided their offices in September and last month the SEC launched an investigation against the company. In addition, they’re facing several shareholder class action securities fraud lawsuits and two major investors bailed on them. Imperial denies the allegations and the structured settlement business is not under investigation.
According to the letter, several key investors would like the replace the 2 members with directors who are significant shareholders. The letter also detailed shareholder concerns regarding the massive amount of money being spent on legal issues. The shareholders also did not like the company’s choice of law firms.
The investors gave the company until March 9th to reply. So far, there has not be any public acknowledgement regarding the company’s decision.
Dear Rescue Capital,
I have a life insurance policy that I no longer need. I am looking to cash out and use the money to fund my retirement. What are my options?
Annalisa in Chicago
Since you are looking to obtain funds, you have two options. One is to surrender the policy for the cash value to the life insurance company. The second is to sell your policy on the secondary market. This type of transaction is called a life settlement and typically yields significantly more than the surrender value. If you are interested in discussing your options, please call us at 866.688.3532.
It’s Monday Morning and many east coasters who suffered damage from the weekend’s storms are starting to look over their insurance policies and file claims. Unfortunately for some, they will soon discover that they face have a huge deductible or the damages are not covered at all. For renters without a renter’s insurance police, they will find out the hard way that their property is NOT covered under their landlord’s insurance policy.
Substantial repairs and property loss can be a huge financial burden, especially to those who are already struggling financially. However, for individuals who own an illiquid asset such as a structured settlement, annuity, life insurance policy, royalties, inheritance, pensions, cell tower leases, mortgage notes, lottery payouts or other period payments; you have options. Those individuals can sell some or all of their future payments in exchange for a cash lump sum.
On occasion, even with a plan, there are unforeseen circumstances that require you to touch financial assets you normally wouldn’t dream of touching. However, when you need money to avoid foreclosure, fix your roof, or replace damaged property you are often left with no other choice. While selling future annuity payments isn’t for everyone, Rescue Capital believes that everyone deserves to get the maximum amount of dollars they can get from selling their payments. If you’re struggling financially and would like to know more about selling your annuity or other illiquid assets for cash, call Rescue Capital at 866.688.3532.
It appears that another financial institution has left the reverse mortgage market. Last week, Wells Fargo, the largest reverse mortgage provider, announced the cancellation of their program due to unpredictable home values. With so many players exiting the market, cash-strapped seniors are left scrambling for alternative ways of staying in their homes.
Reverse mortgages allow homeowners 62 years of age and older to convert some of their home’s equity into cash. Paid in a lump sum or in installments, borrowers continue to live in home as long as they maintain the home as well as pay the taxes and insurance on the property. They also have to pay for mortgage insurance. Once the last borrower dies or moves out the home is sold, the lender collects their money and remainder goes to the borrower or their heirs.
For seniors who have illiquid assets such as a structured settlement, annuity, life insurance policy, royalties or even a pension they have options they may know about. They can sell the rights to a portion of the future payments for a cash lump sum. Unlike reverse mortgages, this is not a loan so you do not have to pay the money back. In addition, the home doesn’t need to be sold when the homeowner moves out or dies. They can rent the property, leave it to their heirs or even leave it vacant. However, their insurance company may not like that idea of leaving the home vacant. With many reverse mortgages an extended, but temporary, nursing home stay can cause the homeowner to be kicked out of their homes.
In addition to the compound interest, borrowers must pay significant upfront costs with a reverse mortgage such as origination fees and closing costs. These fees are typically more expensive than when you buy a house. When you sell an annuity or other illiquid asset the cost to the seller is usually less. Also the seller doesn’t have to be over 62 to sell their payments. If they leave the home for an extended hospital stay they don’t have to be worry about becoming homeless.
Another thing to consider is the potential for Medicaid qualification issues with reverse mortgages. So if you decide to go with a reverse mortgage you need to really do your research and read all the fine print. Every financial situation is different so it really pays to discuss your financial situation with an eldercare attorney who understands the needs of seniors to help you make the decision that is right for you.