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Old 08-26-2014, 07:38 AM
 
29,774 posts, read 34,856,103 times
Reputation: 11687

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The thread title is also the title of the article and is presented as information and food for thought/consideration.

Loans
Quote:
A pension, for those lucky enough to have one, offers a guaranteed check every month for the rest of your life upon retirement. But a number of companies are now offering an alternative—a pension advance, typically made in one lump sum payment. Their pitch, aimed at military and government retirees with generous pension benefits and those with bad credit, is mighty appealing: You can receive cash now to pay for today's bills.

But there's a catch—in order to get tomorrow's money today, you have to sign over future pension payments for several years—and the price is steeper than many realize
Quote:
But there's a catch—in order to get tomorrow's money today, you have to sign over future pension payments for several years—and the price is steeper than many realize
Quote:
Mark Corbett runs the website Buy Your Pension http://www.buyyourpension.com/, which helps facilitate pension sales. He told TODAY that a pension advance is not for everyone, but he believes it can be beneficial for some people.

"You should not sell your pension unless it saves you money," he said. "For example, you are using it to pay off bills."

Four years ago, Corbett got an advance on his private pension—selling a $237,000 nest egg for $89,000—to pay off his mounting bills. He called it "a godsend" that reduced his stress and probably added years to his life.
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Old 08-26-2014, 08:42 AM
 
Location: Idaho
4,621 posts, read 4,460,757 times
Reputation: 9035
Quote:
Four years ago, Corbett got an advance on his private pension—selling a $237,000 nest egg for $89,000—to pay off his mounting bills. He called it "a godsend" that reduced his stress and probably added years to his life
I'll say that is a pretty steep price! People used to go to jail for stunts like that, (the "lender",not Mr. Corbett). Mr. Corbett may have reduced his immediate stress, but I bet the day arrives when he rues the day he took such a payout and will have to deal with a whole new stress level.
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Old 08-26-2014, 09:10 AM
 
29,774 posts, read 34,856,103 times
Reputation: 11687
Quote:
Originally Posted by volosong View Post
I'll say that is a pretty steep price! People used to go to jail for stunts like that, (the "lender",not Mr. Corbett). Mr. Corbett may have reduced his immediate stress, but I bet the day arrives when he rues the day he took such a payout and will have to deal with a whole new stress level.
The thing is that the company in the link is his.
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Old 08-26-2014, 09:44 AM
 
Location: SoCal
6,064 posts, read 9,524,350 times
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Quote:
Originally Posted by TuborgP View Post
The thing is that the company in the link is his.
Sounds like he learned a lesson from being ripped off. Sad that it was a negative lesson.
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Old 08-26-2014, 10:05 AM
 
29,774 posts, read 34,856,103 times
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Quote:
Originally Posted by oddstray View Post
Sounds like he learned a lesson from being ripped off. Sad that it was a negative lesson.
He didn't write the article he runs a company helping people to find companies to sell their pensions
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Old 08-26-2014, 10:47 AM
 
Location: Central Massachusetts
4,800 posts, read 4,844,519 times
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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

He aint getting one red penny our of my pensions. I would rather stick toothpicks under my fingernails.
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Old 08-26-2014, 10:54 AM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,817,345 times
Reputation: 8293
The Military has already warned retirees about these. They can't sell theirs neither can veterans
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Old 08-26-2014, 02:43 PM
 
12,562 posts, read 16,655,760 times
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Reminds me of reverse mortgages.
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Old 08-26-2014, 02:55 PM
 
Location: SoCal desert
8,093 posts, read 13,227,512 times
Reputation: 14870
Quote:
But a number of companies are now offering an alternative—a pension advance, typically made in one lump sum payment.
Sounds like the same companies who run late night TV commercials.
"Cash in your structured settlement and use your money now!"
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Old 08-26-2014, 03:00 PM
 
Location: Florida -
8,760 posts, read 10,834,959 times
Reputation: 16632
For every person out there who hopes they can beat the system ... and/or 'get something for nothing', there are ten folks willing to tell them how 'clever' they are for swapping a $237K pension for $89K! The loan consolidation and reverse mortgage folks have been playing this same tune for years. -- It works because people get desperate or greedy (or both) and make poor long-term decisions - for short-term cash.
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