Settlement Funding - Why Would An Investor Choose This Option?

Smart and savvy investors often chose to make settlement funding a part of their portfolio in order to obtain consistent and secure returns.

However there are specific problems that you should be cautious about should you be aiming to join them. Keeping on the correct side of these blunders will enable you to obtain the best returns from these annuities as soon as your retirement comes.

You will need to initially think about why you would like to purchase an annuity, and also why someone would be looking to sell an annuity to begin with. There are, of course, all kinds of other competing investment vehicles. Just what makes annuities such a common option?

Much of the answer can be obtained from the point that annuities often provide the best defense against erosion as a result of inflation, as well as that they often provide you with tax sheltering. Naturally, a tax shelter wouldn't be of any specific benefit if your investment ended up being unprofitable and delivered absolutely no taxable income to begin with.

Annuities are usually guaranteed investment strategies where the particular rate of interest is set for a particular time period, ensuring growth in advance of inflation. Which by itself might make them desirable enough, but there's an excellent advantage associated alongside this.

Many investments, such as the related investment vehicle of certificates of deposit, tend to be subject to taxes on an annual basis. Any kind of gains will likely be subject to taxes right at the end of the tax year, and the money that is paid out to the government is going to be sacrificed once and for all with regards to accumulation and growth. This is how the annuity scores its biggest advantage. The money that accrues each year is permitted to build up without getting taxed. This might only result in a tiny advantage at first, but think about what happens by using the power of compound interest.

Whenever you purchase an annuity, every small sum that is not consumed through taxation will be permitted to compound through the years, and this is the reason that the investment is so popular with individuals saving for their golden years. The threat that is typically not looked at is the fact that annuities tend to be heavily taxed when they're handed down to future generations. A lot of annuity investors don't ask this question when they're looking into their investment requirements, and the salesmen are usually in absolutely no rush to divulge the fact.

Annuities are fantastic opportunities for your own personal retirement plan, on the understanding that you'll pull your money out and put it to use yourself when you attain retirement age. For anyone who is not planning to do this, but intends to leave considerable amounts to their children or some other beneficiaries, you'd be much better encouraged to invest in life insurance.

For many individuals, the best option of all would be to separate your investment among the two. By doing this, it is possible to purchase an annuity to build up a retirement account, but still protect this money that you wish to leave to future generations. This is the approach of the intelligent annuity investor... knowing why someone needs to sell, and why you want to buy.






 

Annuities News:

 

EPS Settlements Group Rebrands as Arcadia - Insurance Journal

EPS Settlements Group Rebrands as Arcadia
Insurance Journal
Arcadia developed structured settlements to address people's long-term needs using periodic payments. Sullivan is chairman of Gerald J. Sullivan & Associates, the focus company for all members of The Sullivan Group. Arcadia is a Greek word meaning an .

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Custom Structured Settlements Helps Client Avoid Substantial Tax Bill - Benzinga

Custom Structured Settlements Helps Client Avoid Substantial Tax Bill
Benzinga
Custom Structured Settlements, LLC recently helped a customer, aka "Hopson (name changed due to confidentiality)," turn $27,000 into $400,000 in seven days. Hopson was about to owe a $400,000 tax bill. For $27,000, Custom Structured Settlement's .

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Analyzing JG Wentworth (JGW) and Triangle Capital Corporation . - The Cerbat Gem

Analyzing JG Wentworth (JGW) and Triangle Capital Corporation .
The Cerbat Gem
JG Wentworth (NYSE: JGW) and Triangle Capital Corporation (NYSE:TCAP) are both finance companies, but which is the better stock? We will compare the two .

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Comparing JG Wentworth (JGW) & Triangle Capital Corporation (TCAP) - Markets Daily

Comparing JG Wentworth (JGW) & Triangle Capital Corporation (TCAP)
Markets Daily
The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such .

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ASTA FUNDING, INC. (NASDAQ:ASFI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors . - Market Exclusive

ASTA FUNDING, INC. (NASDAQ:ASFI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors .
Market Exclusive
The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is engaged in purchasing, managing for its own account and servicing .

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Fox's suddenly swift action on harassment claims: 'The pendulum has swung the other way' - AOL

AOL

Fox's suddenly swift action on harassment claims: 'The pendulum has swung the other way'
AOL
Also leaked to the media in the Horowitz matter was the fact that no settlements have been offered. (A federal probe into whether Fox News improperly structured settlement payments to minimize impact on the company's financial disclosures is ongoing.) .

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Asta Funding, Inc. (NASDAQ:ASFI) Sees Light Trading Volume with 1226 Shares Changing Hands - Highlight Press

Asta Funding, Inc. (NASDAQ:ASFI) Sees Light Trading Volume with 1226 Shares Changing Hands
Highlight Press
The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is involved in the business of purchasing, managing for its own .

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EPS Settlements Group Rebranded Arcadia as Firm Positions for Growth - WorkersCompensation.com (press release)

EPS Settlements Group Rebranded Arcadia as Firm Positions for Growth
WorkersCompensation.com (press release)
Arcadia developed structured settlements to address people's long-term needs using periodic payments. Arcadia is a Greek word meaning an ideal setting in harmony with nature. It connotes a place of shelter where people find peace, security, resolution .

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RPA Insurance Services hires from global broker | Insurance Business - Insurance Business

Insurance Business

RPA Insurance Services hires from global broker | Insurance Business
Insurance Business
RPA Insurance Services hires from global broker RPA Insurance Services has appointed industry veteran Susan Kruger as the head of claims for Innovative .

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EPS Settlements Group rebranded as Arcadia - PR Newswire (press release)

EPS Settlements Group rebranded as Arcadia
PR Newswire (press release)
The company has a rich history as the first structured settlements firm in the world. In more than 45 years in business, Arcadia has helped settle over 325,000 claims involving structured settlement funding of over $40 billion. Arcadia has more than .

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