Annuity Transfer - What are the Risks

 Structured settlement as the name indicates is a periodic  payment of a lump sum amount settled towards a Personal injury or a  Lottery win. There are companies, brokers and consultants who pay lump sum for these future payments calculating their yield over the entire period.  These companies are governed by state and federal regulations, that will accelerate future payments and pay out a lump sum of cash now.

To go in for such payment consider the following points before selling the structured settlements for lump sum.

  • Should not have pressing financial need or opportunity

  • Under the age of 18

  • Annuity is sole source of income

  • Live in North Carolina

  •  Monthly payments less than $100

  • years away

     

What are the Risks accepting Annuity Transfer

Annuity transfer is an attractive amount that comes to hand but if are not good planner and have no experience or knowledge of how to utilize these funds do not go for this transfer. The risks are

  • lack of knowledge to utilize and manage the treasure

  • Going for speculative investments and try to get high yields

  • Lending for high rate of interest for high returns

  • involving in horse race and other gambling ventures

  • Utilizing for criminal activities

  • Dreaming to become overnight and investing in such schemes

Unexpected wealth normally gets more enemies than friends and even kith an kin becomes greedy and may become enemies. Beware

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