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Old 08-26-2014, 03:03 PM
 
29,838 posts, read 34,929,245 times
Reputation: 11766

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Quote:
Originally Posted by Gandalara View Post
Sounds like the same companies who run late night TV commercials.
"Cash in your structured settlement and use your money now!"
I was thinking the same thing as I read it
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Old 08-26-2014, 03:09 PM
 
Location: WA
5,399 posts, read 21,428,666 times
Reputation: 5914
Companies that buy annuities have to factor how long it takes to get their money, what the money is worth, the risk, and the legal and processing costs. It is ignorant and naïve to think a cash settlement will be close to a total payout over time. There are reputable companies offering this financial service but you still need to be aware of what you are contacting.
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Old 08-26-2014, 03:17 PM
 
12,612 posts, read 16,707,627 times
Reputation: 24355
Quote:
Originally Posted by cdelena View Post
It is ignorant and naïve to think a cash settlement will be close to a total payout over time.
I compare it to going to Las Vegas and believing the magnificent casinos and light bills are being paid for by Santa Claus.
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Old 08-26-2014, 07:12 PM
 
Location: SW Florida
9,780 posts, read 7,067,088 times
Reputation: 14360
Quote:
Originally Posted by golfingduo View Post
He aint getting one red penny our of my pensions. I would rather stick toothpicks under my fingernails.
Same here. I wonder how stupid he thinks people are.....oh...wait....never mind......some folks would do anything for that quick buck and never think of the consequences.
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Old 08-27-2014, 09:32 AM
 
Location: SoCal
6,077 posts, read 9,552,853 times
Reputation: 5839
Quote:
Originally Posted by TuborgP View Post
He didn't write the article he runs a company helping people to find companies to sell their pensions
I do understand that. It's sad that he learned he could turn this sort of shark-finance behavior into a business.
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Old 08-27-2014, 09:59 AM
Status: "Support the Mining Law of 1872" (set 21 days ago)
 
Location: Cody, WY
9,600 posts, read 10,961,949 times
Reputation: 19266
Apart from sellers of annuities and purchasers of structured payouts, 89k today is a far better choice than 237k over perhaps twenty years or more. The individual who is at all competent can easily have far more money in the same period. Additionally, individuals die; insurance companies do not.

We can determine whether we should make arrangements of this sort easily.

Present value - Wikipedia, the free encyclopedia
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Old 08-28-2014, 07:22 PM
 
Location: Metropolis IL
1,605 posts, read 1,898,553 times
Reputation: 2352
This used to be fairly prevalent with military pensions. There were two or so firms that advertised regularly in the classifieds of respected military newspapers. Retirees assumed that the programs were legitimate and above board. The problem was that the buyers didn't give an amount equivalent to the lifetime value of the pension. A retiree might get 10%. So the money was soon gone, and the monthly pension with it. They preyed on those in need of an immediate lump sum of cash.

The government and the courts got involved, and I don't think the practice is as rampant as it once was. By the looks of late night TV ads, it appears personal injury lawsuit winners are the latest target.
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Old 08-28-2014, 07:34 PM
 
Location: Los Angeles area
14,018 posts, read 17,775,806 times
Reputation: 32309
When I retired at 61 and a half, the retirement system itself offered a partial lump sum, or maybe even a total lump sum (I don't remember). I didn't waste a second even considering lump sums, and it wasn't because I was convinced I would live a long time, either. It was in case I lived a long time. There is great peace of mind knowing that one will not out-live one's money, and since my pension is inflation-protected, I have that peace of mind.

I don't care for the idea of having to ride herd on investments, where mistakes or inattention can have huge negative consequences for my future.

What dollar value can be attached to total peace of mind (in the financial sense)?
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Old 08-28-2014, 08:55 PM
 
Location: SW MO
23,605 posts, read 31,538,376 times
Reputation: 29083
Quote:
Originally Posted by Escort Rider View Post
When I retired at 61 and a half, the retirement system itself offered a partial lump sum, or maybe even a total lump sum (I don't remember). I didn't waste a second even considering lump sums, and it wasn't because I was convinced I would live a long time, either. It was in case I lived a long time. There is great peace of mind knowing that one will not out-live one's money, and since my pension is inflation-protected, I have that peace of mind.

I don't care for the idea of having to ride herd on investments, where mistakes or inattention can have huge negative consequences for my future.

What dollar value can be attached to total peace of mind (in the financial sense)?
Shh! You'll bring out the anti-government-pension-gremlins. Sadly, pension envy is still alive and well and, Jimmy Crack Corn and I Don't Care. Like you, we take great comfort in our inflation-protected pensions. We worked hard for them.
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