Annuity – Annuities and how they add up

If you have succeeded in adding to the basic understanding of an annuity or annuities, then you will have made a contribution to yourself.  An annuity is somewhat basic; however, understanding how to calculate the value of each contribution can sometimes seem baffling.  Explained in this article is the basic understanding of an annuity and how they add up for your contribution.
 

To begin with, an annuity or annuities is basically a structure of accumulating a lump sum of money through a series of regular and evenly balanced payments.  As with the reverse being the liquidation of a sum through a series of regular and evenly balanced payments.

The process to annuitize a sum of money means to convert the sum to a series of monthly incomes to that of a design of a monthly retirement income flow.   To understand the math involved in the calculation, you would have to understand the basics of simple and compound interest.  The process involves the collaboration of value and time and the interest rate. 

An example of an ordinary annuity certain is as follows.  What is the value of a monthly contribution of $100 over 5 years at an interest rate of 5% that is compounding monthly?

You could go through the process of calculating the value of each contribution using a simple interest formula.  This can be calculated using a formula because the contribution amount and the intervals are consistent however this formula could be a lot of work.

Listed below is the annuity formula to use:

                

FV = PMT [(1 + i )n -1]  divided over i    FV = Future Value  PMT = amount of periodic payment  n = number of compounding periods  i equals interest rate

Insert the numbers into the equation and you get:

Payment = 100  N = 5 years X 12 months = 60   I = .05/12 = .004167 = 6,800.68

The lump sum converted to an annuity payout.  Consider you have a lump sum of money that is to be paid out as a series of equal payments over time.  Although the lump sum decreases in value, it still earns income on the unapportion balance.  This type of annuity is favored as a method of creating a monthly retirement income.

An example is, Paul has accumulated 400,000 and would like to know how much that would pay him each month for the next 30 years at interest rates at 5%.

So add it up.  By understanding the calculation of an annuity you can add up what you will benefit.

                               

Annuity – Caring for you with a Life Care Plan

An annuity can constitute a life care plan. If care were a stock being offered on the market, it would be a wise commodity to invest in at this time in our economy.  The more you put into life, the more life will care for you bringing you more security.  This is especially true when you are in need of security as the result of an injury.

An annuity or a life care plan can offer you the supportive care you are seeking from an injury that you are obligated to face.  The purpose of a life care plan is to establish and calculate medical damages from an injury.  These plans are normally created in high-dollar litigated cases in workers compensation accident, personal injury, medical malpractice, and auto or product liability cases.  

If you are trying to cope with an injury case, a life care plan can be of great assistance toward your case.  Life care plans will list all current and future medical care needs.  They include regularity and length of treatment, medical assessments, therapy, equipment, supplies, medications, diagnostic tests, home health care, and transportation.  An annuity can be cashed in to take care of those life care needs.

Life care plans should be coherent with standard care practices and recommend supportive care at an appropriate level for your injuries or condition.  At the first approach to the plans, they may seem to identify reasonable and necessary medical costs.  However, at a second glance, some recommendations may be unjustifiable, unnecessary, and/or over overstated. 

To help moderate costs a number of innovative procedures are available, involving various financial products in combination with an annuity.  An example of this is the know-how and use of guaranteed issue health plans to moderate or fully fund future medical damages.  

Available in numerous states throughout the United States, they are made available with lifetime caps ranging from $250,000 to some states where there is no lifetime limits on the benefits.  By considering the funding of a health policy that will cover the surgery or other collateral sources it can provide it can moderate significant pieces of the life care plan.  

By utilizing the life care plan you can get a better idea of what it will actually cost to fund the damages.  With the life care plan, your representative is better prepared to make an effective response to any demands.  By utilizing a life care plan, you are caring for you.

Annuities – Opportunities in Annuities

There are usually two choices in life people generally make.  Either to accept conditions as they exist or except the responsibility to change them.  Annuities can help you reach the right choice.  What you can give now, you can gain in the future.  With the right choices, an annuity can offer you lots of opportunities. 

An annuity offers potential income that you cannot outlive.  There are many ways to use an annuity toward securing your retirement.

Choosing the right one, however, can be confusing.  So before you buy, educate yourself.  For instance, find out whether a single versus flexible-payment annuity is right for your personal needs.  Also, find out whether you want a fixed rate of interest or variable.

With guaranteed rates and a rating safety net, an annuity is one of the safest places around to invest your money.  Furthermore, tax deferral guarantees you don’t have to pay on your interest incomes until the funds are withdrawn.

Another important factor is that annuities are easily transferrable to your beneficiaries upon your death.  This is a prized step in any strategy to planning your liabilities.

Annuities can also be tailored in with an established retirement savings plan like your 401(k).  By combining your 401(k) with an IRA, it can give you the opportunity for great saving options if you are considering annuities. 

Annuities do not offer the opportunity for massive gains.  As a result, they have not always been popular with investors.  In fact, since the downfall of the economy, many investors also are now turning to annuities.

Opportunities can belong to those who make the right choices.  It is important for us all to reach that range by making the right choices in planning for our future.  Our lives are the sum total of the choices we have made.  Maybe with the right choices, it will open up opportunities for an annuity. 

 

Annuity – Making Plans for an Annuity

Legendary singer, John Lennon once stated, “Life is what happens to you while you are busy making other plans.”  With the outlook of our future, it is significant to make plans in considering an annuity as your option.

Before deciding if an annuity is the best choice for your investment plans, take the first step in researching different types.  What you will find is that there are many different types of annuities available that could be amended to suit your needs.  However, the two most common kinds on the market are immediate and deferred annuities.

An immediate annuity provides you payment every month with an indicated rate of return from money you put up front.  If you’ve received a large sum of money from a settlement, lottery winning, inheritance, etc. then this may be the best annuity for you.

An immediate annuity would guarantee the money you put in would be paid until your death.  It would safeguard your profits for the future, which ensures a sense of security.

Deferred annuities pay monthly payments once you’ve grasped a set time or dollar total that you’ve paid in over a phase of time.  So what you put in through the years basically determines what you can get out.

I’ve researched the payment types and found that the most commonly used are fixed and variable annuities.  The best payment type for your annuity depends on your investment interests.

A fixed annuity provides a guaranteed rate of return over a set period of time.  Fixed rate annuities, also known as retirement annuities, are common for investors that are close to retirement and protective of their funds.  The fixed rate annuity fits the needs of the risk reluctant investor.

If your money is not drawn up in a low generated investment and the market is profiting, then the variable annuity would be your best investment.  The variable annuity appeals to the investor that expects a high rate of return on their investment.

Variable annuities are coupled to another security, like mutual funds, that will bring a higher rate of return when the market carries it.  The variable annuity guarantees a lower rate of return.

If you are considering making an annuity a part of your plans, then you should consider all your options.  Do not let life pass you by before starting these plans for you future.

Structured Settlements – How you benefit from a Structured Settlement

Every advantage you have in life can affect your life tremendously.  Just as there are many advantages to selecting a structured settlement over a lump sum award. 

One definite advantage is that a structured settlement will provide for the future needs of the injured party.  A majority of the time, a structured settlement will provide the injured party’s personal and medical needs throughout their life.

In comparison, lump sum awards often end up misused in bad investments, overuse, and the ups and downs of the stock and investment market.  Structured settlements can be the best and safest means of making sure an injured person, who awarded through the court, is provided for throughout their lifetime.

A second advantage of structured settlements is that they are a tax break.  Annuity payments in general are untaxed, leaving more money in your pocket.  On the other side, lump sum payments can incur a sizable tax burden. 

Flexibility is another advantage of structured settlements.  There are no two structured settlements that are the same.  Present and future needs of the injured party are taken into account in each structured settlement.  They are also constructed to provide more funds for the claimant later in life or if the injured party’s medical condition worsens.  Structured settlements provide a realm of possibilities since it is a private agreement between the claimant and the defendant. 

Additional advantages are that your money cannot be lowered as a result of a divorce.  And a lot of people rely upon social security toward their retirement, which cannot also be lowered. 

In conclusion, a structured settlement can result to increasing the net amount of award money for lots of people.  There are many unique advantages to structured settlements that assist in determining that amount.  The most significant advantage considered by many who have constructed a structured settlement, is that it is guaranteed to provide for your future needs.  In today’s economic downfall, that is a huge advantage. 

    

Structured Settlements – Opportunity for Security in the Future

We often delay reform as a result of its uncertainty.  There is a concern that people are worried about the security of their future.  Therefore, people who have been awarded compensation from a lawsuit often look at structured settlement annuities as the opportunity for security in their future.

Structured settlement annuities are insurance plans that offer fixed payments over a length of time to a plaintiff in a lawsuit.  Structured settlement annuities are common for payments scheduled to span over a set time that have been obtained by the losing side. 

The payments sometimes last till the purchaser’s death.  If you have lost a lawsuit, without a structured settlement annuity you could have an unreasonable amount of costs to pay out to the plaintiff. 

Personal injury cases are usually resolved by structured settlements.  If you are involved in a major injury case where you are looking at a long term loss of wages due to extended medical cares, a structured settlement annuity can be set over a fixed period of time. 

This way you can be provided with a source of income to take care of your medical costs that was involved in your injury.  It can assure financial security for your needs in the future.  Structured settlements are usually constructed in several steps that can be structured to fit your personal and medical needs.

Structuredsettlements are popular because the income is not reflected legally taxable.  This derives from the fact that structured settlement annuities are typically a court ordered financial compensation that is paid monthly until death or a predetermined number of years.

Tomorrow belong to those people who prepare for it today.  If you are looking for great opportunities to find security in your future, then a structured settlement annuity may be where you should look.  There are professional’s available to give you advice if a structured settlement is in your plans.  Hopefully you can plan for the right choice for your future needs. 

Structured Settlements – Making the most out of your Money

Most people try to make the most out of their money in these economic times.  For this reason, sometimes those who were injured in an accident and unable to work, hope their settlements awarded to them can meet their financial obligations over the years.

But sometimes life circumstances require some people to sell their award in order to meet other obligations.  People considering this option should educate themselves on selling their structured settlements.

Why do settlement recipients sell their annuity payments that they could receive as an ongoing income?  The answer to that question depends on your life situations.  Life and circumstances change for people through the years.  Financial downfall hits us and bills add up.  Others may be trying to pay for college, going through a divorce, stating a new business, or they may need a down payment for a house. 

The reason to decide to sell to a reputable, structured settlement purchasing company suddenly becomes a priority.  You decide that it is the best option to make more for your money.

There’s an enormous industry out there that was set up to meet the needs of those receiving payments from an annuity.  If you are in need of a large amount of cash, you can option to cash out of your settlement.   You have flexibility to meet your demands based on your needs and financial obligations.

Also, you do not have to sell all of your payments.  You can choose to sell some or all your payments at once.  It’s your choice, but should be considered wisely so you cash in the right amount needed.  Just remember if you sell some of your payments you can get a sum of cash today and still keep some of your payment together.

The decision to sell your structured settlement depends on your personal and medical needs.  To make the most out of your money and your future, it may be the right choice for you to consider selling your structured settlement.

Structured Settlements – Choosing the Right Investment

Are you attempting to choose the right investment and have structured settlements that you are holding? Benjamin Franklin once said, “An investment in knowledge always pays the best interest.”  With the economy uncertain about its financial future, it makes sense to want to invest your money.  Therefore, many people are checking out all their investment options these days.

How am I going to pay for my children’s college?  What if I’m going to need to repair the house?  What will happen if I get sick?  People are always searching for a way to invest their money for what tomorrow can bring us.  Buying a structured settlement is an investment strategy that can secure your future.

A structured settlement is where a plaintiff in a lawsuit is awarded an amount of money that is paid out in fixed payments over a set period of time.  The plaintiff counts on a payment of money every month for a determined amount of years, resulting usually from an insurance or life settlement.

However, sometimes events in our life can change our perspectives in how our personal finances should be used.  Life changes for all of us and we have to make new choices.  The choice to receive a lump sum of money can now be more significant than a scheduled payment each month.

In these cases, some people decide to seek out an investor to buy their structured settlement payments.  They would receive a cash payout for the payments remaining in their structured settlement.  It’s an alternative vehicle that can work out in your favor according to your needs.

Selling your structured settlement is not always a simple procedure.  None the less, simplicity is not always the best priority when it comes to your future.  The process involves financial and insurance companies, lawyers, and judges working together with others to make this process best appropriate your situation.

A lot of people work hard to find the resources needed to assist you.  These companies want to help you make your investment a successful one.  Becoming knowledgeable on structured settlements may end up being your best investment.   

Legality of Selling a Structured Settlement

I don't know about you, but for most people understanding the legality of selling a structured settlement or annuity is like having your teeth pulled.  For the average person there is a lot to consider.  If you're holding onto a structured settlement then consider yourself very lucky. Structured settlements are valuable in a number of ways.

Where the law is concerned, good luck figuring that out.  Our client is a structured settlement broker, and you may be an attorney but the fact is that most people do not understand the law and don't appreciate being talked down to by attorneys or for that matter anyone.  The basic demographic of those who sell their structured settlements are those who cannot afford to hold onto them, and that's a shame.

By all means if you can't afford to hold onto a structured settlement, and want to understand the legality of seling a structured settlement then we're here to help.

Structured Settlements News: Happy New Year 2012

Happy New Year from Sovereign Funding.  We must have made a splash in 2011. We certainly gained a lot of attention that's for sure. 

We hope that 2012 will bring about great fortune and true happiness. I know that's a tall order for anyone but we know you have it in you :)

As for Sovereign Funding, we've completed a year of mass mania in the blogs.  It's been real as they say.  Attempting to get into google newsfeeds is like building a bridge to somewhere and we've made a day of it.  The main site blog is "alive" and still rolling, even though we've cut back on some of the on-site writing.

We have many avenues of teaching you all about structured settlements. You want to make sure you're being treated fairly and working with the most honest company available.  After all, a structured settlements broker does get a cut of your money.  If it's not worth as much tomorrow as it is today, and you have someone sticking their hands into your pot, it can get ugly. 

Sovereign Funding wants and is determined to get you the best quote on your structured settlement. Call 1855 ego cash now for your fast cash quote. 

And again, HAPPY HAPPY NEW YEAR from Sovereign Funding.  2012 here we come!