Chances are if you have business with an advanced funding firm,
you know exactly why you're there; you want cash today in
exchange for your future payments. But this does not necessarily
mean that you are familiar with or comfortable using the terms
the company you are interacting with is proficient in This is
the buzzword guide to advanced funding terminology to help
prepare your for your transaction.
An annuity is an insurance contract in which a person receives
fixed payments over a defined period of time, usually a
lifetime. An annuity allows people to build substantial funds
for retirement, and plan for future generations. You can also
receive an annuity in a legal settlement, often called a
structured settlement. As the annuitant, you are the person
entitled to receive the annuity payments. These payments are
generally deferred payments scheduled over a long period of
time.
Often, people feel locked in by their annuity, and realize they
need flexible options fast. This is where advanced funding comes
in. You can sell your annuity for a lump sum payment or cash
now. Funding companies like
JG Wentworth specialize in purchasing
annuities and structured settlements. Funding companies will
step into your shoes, and accept your deferred settlement
payments in exchange for an immediate lump sum payment. This is
called liquidity, or the ability and speed with which a security
can be turned into cash you can use now.
This terminology is often difficult to understand if you don't
come from a financial background, but familiarizing yourself
with them is essential before making any economic decisions.
While everyone would love to know exactly how their finances
will pan out in the future, it is impossible to foresee
obstacles that will occur in the future. Educate yourself on the
numerous possibilities available before completing financial
transactions that will impact your future.
About the author:
Nina Nocciolino is a copywriter for
DMi
Partners, an interactive marketing firm specializing in
higher education, real estate, retail and finance.
