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J.G. Wentworth Blog

Selling your structured settlement and annuity payments: Is that really the best way to get cash into your pocket? – Part 2

Hi folks, J.G. Wentworth here.

Let’s continue the conversation from our previous blog post and discuss three other places folks turn to for a lump sum of cash – and see how those places compare to selling your structured settlement or annuity payments for a lump sum.

Selling structured settlement or annuity payments versus taking out money from your 401(k)

Getting cash out of a 401(k) can be fairly easy. There is no credit check involved, and you may be able to get that cash within 24 hours, especially if your 401(k) plan offers a wire transfer option.

The downside of going this route to get cash, however, may be fairly severe. First, you may have to pay certain fees, penalties, and taxes when you take money out of your 401(k) prematurely. Additionally, you will certainly cause the value of your 401(k) portfolio to drop, sometimes precipitously. Don’t forget, your 401(k) is designed to give you financial support during your retirement. Taking money out of it sooner may jeopardize your lifelong retirement plans.

Selling structured settlement or annuity payments versus buying products “rent to own”

When you need certain essential items in your life, like home furniture and electronics, you may be tempted to purchase them through a “rent to own” process that allows you to pay low weekly rental prices and potentially purchase the products at a later date. Unfortunately, the financing charges on these products may be enormous, depending on your credit rating and the business offering these deals to you. You may find yourself spending much more money for these products down the road than you would have if you had just sold a portion of your structured settlement or annuity payments, and used that cash for an upfront purchase.

Selling structured settlement or annuity payments versus borrowing money from friends and family

Of course, the first places many people turn to when they are in desperate need of funds are friends and family. And many are happy to help, sometimes going so far as to offer loans at extremely low interest rates – and even no interest rate charges at all.

This is all well and good; friends and family should be commended on their thoughtfulness and generosity. Sadly, however, such offers may also lead to fracturing these relationships, especially if your financial troubles continue and you become unable to pay back the loan. It’s tragic, yet it happens all the time: personal and family relationships are severed because of money. You should try to avoid that at all costs.

Once again, what all these above categories have in common, just like the three mentioned in the previous blog, is that in all of them you are borrowing money from an outside source. Just remember that selling structured settlement or annuity payments requires no such act. All you’re really doing is getting the money already owed to you sooner; in a sense, you are “borrowing” from nobody but yourself. It is for this reason, among many others, we strongly recommend that when it comes to getting cash sooner, selling structured or annuity payments for a lump sum is frequently your wisest and best course of action. Please give us a call anytime at 1-877-227-4713 to discuss your options.