Many military veterans, and other pensioners receiving monthly payments from pension plans are not aware that through a type of money purchase pension plan certain financial companies advances lump sum cash when needed. This is a pension buy out that is not a pension loan; it is a pension lump sum that a pension holder can receive upfront and put to work without delay. Many qualified retirees sell a specific portion of their pension funding in exchange for lump sum pension cash to cover an unexpected life event or even finance a life opportunity. Borrowing money from traditional financing sources without having the required collateral as security and good credit for a loan can be difficult for anyone.
Those on a pension in need of financing after retirement who do not have other significant assets offer an unfortunate illustration of this. The result often leaves retired pensioners viewed like all other unqualified borrowers, and can make the "golden years" not so golden. If you're a pensioner who has tried borrowing against their pension, you know what we're talking about. Most types of pensions are eligible, including corporate (public & private), civil service (including all levels of government), even military pensions.
The concept is simple, and the funds provided can be used for nearly any purpose: debt consolidation, a down payment for a home, making investments, paying education expenses you name it. Time Value of Money: Would you rather have a dollar today, or that same dollar in the future, say in one year? How about eight years? The answer is simple: Give me my money now! The time value of money simply illustrates that since we can earn interest on money we have today, it will be worth more in the future. Conversely, if we have to wait to receive money in the future, those same dollars are worth less today. This is called "discounting", and is the basis for our pension funding business model.
Put another way: If you pay an up-front lump sum for someone's future pension payments today, and not be repaid for up to eight years, should you not be repaid a greater sum over that time than the amount you advance now? Of course one should! With this particular company that we are confident in showcasing in this article your credit isn't an issue. Even if you have had a Bankruptcy, however, if you have had a Bankruptcy - a Chapter 13, it would need to be discharged, if it is a Chapter 7, it would need to be discharged for at least 2 Years. Good payment history following the Bankruptcy is a must. But, we have learned via several sources that there's no cost to apply. Although a person hasn’t met certain protocols involving Bankruptcy it may still be worth applying. Remember, while a retirement & pension lump sum may not be right for everyone, it may be appropriate for some. There are pros and cons for both annuitization and lump sum distributions, and here is a quick outline of some of those considerations.
If your pension is earning 5% and your credit cards are charging 28%, isn't it time to do what makes sense? Or if you have the chance to earn 20% in a business opportunity, why keep the needed funds tied up? Gather more information over at the Private Pension Firm below. The staff is personable and has expertise in selling Pension & Retirement Plans to recipients with cash lump sums that offer broader, more flexible legacy planning pension loan options. You can roll over lump sums to IRAs, and freely name beneficiaries so any remaining proceeds can pass to future generations or to charitable causes to effectively plan your pension loans.
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