Because Money Doesn't Grow On Trees...
1st Choice Funding Provides Today's "Financial Bridge" With Innovative Financial Solutions
Lump Sum Structured Settlement Funding
1st Choice Funding Provides Today's Lump Sum Structured Settlement Financial Solutions
Lump Sum Structured Settlement recipients who seek to become informed regarding selling a structured settlement lump sum payment or payment stream have several options available as today's Lump Sum Structured Settlement receivers may elect to selling all future payments in exchange for a lump of cash now, or may choose to sell some of the future payment stream. Either way 1st Choice Funding's options are designed to meet your immediate and
future financial needs by providing an innovative financial service which include: 1. Selling a specified amount of future Structured Settlement Payments
2.Selling all future Structured Settlement Payments
Payment options are available if you're receiving payments from a structured settlement or annuity and such structured settlement payments are not meeting your current financial needs, 1st Choice Funding's investment resources can unleash the converting of future structured settlement payments into a lump sum of cash today. 1st Choice Funding's investor portfolio has the
ability to purchase and quickly fund structured settlement and annuities in all 50
states and as such we understanding the "Present Value" of Future Payments to provide to you the most cash today.
Sometimes, there is confusion surrounding the amounts paid to sellers
for their future cash payments. Many Sellers initially think that our
prices are highly discounted. This is simply untrue. Part of the money you are getting in the future is interest
that hasn't been earned yet. On a structured settlement annuity
for example. The insurance company is simply paying you the interest on
the money they invested when you settled your case. The "amount" of the
settlement (ie. the sum of all the future payments) includes a great
deal of interest that hasn't been earned yet. Take the example of a
United States Government bond:
As of August, 1998, a $100,000 zero coupon (pays zero interest)
United States Treasury Bond due August 20, 2017 was worth $31,780, less
than one third of it's nominal or face value.
Is the U.S. Government getting ripped off in a highly competitive
global free market? The answer is obviously no. The simple
fact of the matter is the promise to pay $100,000 (or any amount) in the
future is not worth that amount today. The further in the future it is
due, the less it is worth today.
Many state lotteries
now offer a lump sum option instead of the traditional 20 - 25 year
annuity payout. However, as we all know, when you elect to receive a
lump sum you typically receive about one half of the advertised prize
amount. In fact, what the lottery commissions do is identical to a
structured settlement. An annuity or U.S. Treasury bonds are purchased
to fund the future payments due to the winner. Attached is a copy of the
State of New Jersey's lump sum formula and a thorough description of the
California Annuity Prize Payment Procedure from the California Lottery.
Both demonstrate that the actual value (the present value) of the stated
jackpot is really about half that amount and both states allow people
who have elected to receive an annuity to change their minds and sell
some or all of their future payments to a Lottery/Settlement Purchasing
Company.
Structured Settlement Lump Sum Funding Purchases Are Like Mortgages...
When one
borrows money for a home mortgage the bank gives you - say $100,000. But
if you add up the payments you make back to the bank they total 250,000
- 300,000 (depending on interest rates and terms). In essence,
settlement purchasers do exactly the same thing only we take the risk if
the insurance company goes bankrupt - you owe us nothing. Also, since
these transactions are not loans they don't affect your ability to
borrow from other sources.
Structured Settlement Lump Sum Funding… Still Not Convinced? Consider the following:
It
is an axiom that the further in the future you are expecting to receive
a sum of money, the less it is worth today, in part because of
inflation. Inflation will make the value of the payments shrink in
coming years.
By converting future payments into a lump sum, an
individual gains a potent weapon in fighting inflation. The following
illustrates the effects of inflation and the power of
compounding: The Rule of 72
states that an investment at a particular interest rate will double in a
certain number of years. You can easily determine how quickly your
investments will double simply by dividing 72 by the interest rate that
you anticipate receiving in a given investment. For example, an
investment that will yield 10% per year will double approximately every
7.2 years (72/10 = 7.2). A 12% yield would mean your investment doubles
every 6 years. Below is a chart with the Rule of 72 applied to a $15,000
investment at various interest rates over the course of a number of
years. This gives you some idea of how much a lump sum today can be
worth in the future.
| Interest Rate* |
Value after 10 Years |
Value after 15 Years |
Value after 20 Years |
| 12% |
$49,505 |
$89,937 |
$163,388 |
| 14% |
$60,337 |
$121,012 |
$242,704 |
| 16% |
$73,514 |
$162,746 |
$360,288 |
* Assumes monthly compounding.
Inflation is like a cancer eating away at the value of
your money. The further in the future you are to receive a sum of money
the less it is worth today because of, at least in part, inflation.
Thus, no matter what the source, structured settlement payments, lottery
prize or other type of annuity, inflation will make the value of the
payments shrink in coming years.
Just look at what inflation has done
over the past 34 years:
| 1964 Average Prices: |
| Salary: |
$ 6,080.00 |
| New House: |
$ 13,050.00 |
| New Car: |
$ 3,496.00 |
| Loaf of Bread: |
$ 0.21 |
| Gallon of Gas: |
$ 0.30 |
| Ounce of Gold: |
$ 35.00 |
Imagine how little that "huge" $1,00,000.00 is in
January 2017 vs. at this time.
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