Time Value of Money in Structured Settlement Factoring Transactions

Settlement Quotes has received several inquiries for an explanation on why there is such a large difference between the present value and future value of a cash flow. We will use as an example the highly publicized Ciemielewski case to show our readers how the time value of money effects the lump sum payment an annuitant receives when factoring a structured settlement.

Inflation Affecting the Structured Settlement Factoring Industry

With the rising costs at the gas pumps, grocery stores, and other consumer outlets, structured settlement recipients are finding themselves contacting factoring companies in order to relieve some of the financial pressures of today's market. While this may seem like a quick fix to any financial problem a tort victim may encounter, factoring a structured settlement will not help the annuitant over the long haul.

Kudos to JG Wentworth in their Recent Press Release

Here is a snippet of J.G Wentworth's recent press release:

1. Do your research on firms that can purchase your structured settlement to ensure they have a reputation of offering fair value.
2. Do not take the first offer to purchase your policy, but shop around to get the most value for your structured settlement.
3. Depending on your financial needs, decide on whether you need to sell your entire structured settlement or just part of it.
4. Consult with an attorney to make sure you understand and document any tax ramifications.
5. Think about your financial needs going forward and how selling all or part of your structured settlement may impact your income later.
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