A study ***conducted in 2007 indicated that the less a person knows about structured settlements, the less likely he or she will choose a structured settlement. And, more importantly, the opposite holds true: the more a person knows about structured settlements, the more likely he or she will select a structured settlement instead of a cash payment.

In fact, Joseph M. Costello, Chairperson of the National structured settlements Trade Association (NSSTA) Marketing Committee, reported at NSSTA’s 2007 Winter Meeting and 2007 Annual Meeting that just 7% of personal injury settlements between $75,000 and $100,000 includes structured settlements and only 30% of personal injury settlements above $1 million includes structured settlements.

In the study, people were asked how they would prefer to receive a settlement. With no explanation of the difference between a lump sum payment and a structured settlement annuity, 65% chose a lump sum and 35% chose a structured settlement. But after receiving explanations of the differences between a lump sum and a structured settlement, 73% chose the structured settlement annuity payments and only 27% chose the lump sum payout, a complete switch.

The survey concluded that “the structured settlement industry needs to educate Americans about structured settlements”.

Once they learned about the benefits of structured settlements, plaintiffs said that a primary reason that they would choose a structured settlement annuity is because it provides a reliable income for monthly expenses and guarantees financial independence. What may not be as clear to plaintiffs nowadays are the options and the flexibility that a structured settlement offers.

Once a person receives the cash from the lump sum payment, he or she cannot simply change his or her mind and switch to a structured settlement payments.  However, if an injured person chooses a structured settlement payment, he or she has the option at a later date to sell all or part of the settlement in the secondary market, for immediate cash, while still retaining a portion of the income stream.

Section 5891 of the Internal Revenue Code and the Structured Settlement Protection Acts at the state level give payees the option, with court approval, to transfer structured settlement payments from themselves to factoring companies who buy structured settlement payments. Given the flexibility offered by the buying and selling on the secondary market, structured settlement payments may be a better option for those people who are uncertain about whether to choose a structured settlement or a lump sum payment.

In what may be the world’s fastest closing time ever for a structured settlement transfer, Strategic Capital Corporation recently funded an annuitant in 15 days from start to finish.

How did the annuitant get his money so quickly? Simple: he submitted all the required documents on time. Sure, quick closings also depend on factors not in your control-like how fast your state and court systems operate and the efficiency of your annuity issuer. But bottom line: you can speed the funding process by completing all of the documents in your structured settlement package and submitting them to us as soon as possible.

At Strategic Capital, we’ve seen funding delays caused by a single missing document-and we’ve seen funding received in record time when our clients have submitted all the information requested in the structured settlement package.

So when we call to remind you about a missing document, it might feel like your mother nagging you, but please remember: we want you to receive your money as soon as possible.

Please review the checklist included in your structured settlement package. It lists all the documents necessary to complete your transaction. If you have any questions, call us. Your Strategic Capital Corporation structured settlements expert will clarify which documents you need to submit-and when.

Our goal is to ensure you receive the most funds in the fastest time frame possible. Even if we have to pester you to do so. (You can thank us later.)

10 tips to speedier funding

1. Submit a clear copy of your picture ID. Just increase the shade settings on the photocopier to improve the image quality.
2. Keep in mind: legal requirements specify a set period of time you have to wait before asking a notary to sign the contract. We can’t change these laws. So relax and review your checklist to make sure you have completed all the necessary documents.
3. Complete and return every page in your package. You must sign and return each page in the package to remove any doubt that someone could have changed or edited the documents.
4. Yes, annuity policies are lengthy, but it really is necessary to complete and return each page within the policy. We require a complete copy of the policy so we can verify the information surrounding your payments. This information is often dispersed throughout the policy.
5. Include a complete copy of your Settlement and Release Settlement so we can get the necessary information from the courts and your insurance company.
6. Submit a copy of the Qualified Assignment. Without it, we don’t have all the details we need about the obligations of the involved insurance companies.
7. If your transaction occurred when you were a minor and in a different state, we might need to get approval from the state where the original transaction took place. Allow time for this.
8. To avoid funding delays, please provide a check stub or direct deposit statement showing you are currently receiving the payments outlined in your policy.
9. If you are divorced, we will need a copy of the Final Divorce Decree and Property Settlement to verify whether your ex-spouse is entitled to a portion of the funds. The sooner you submit this document, the less chance there will be delays with your funding.
10. Make sure you get it right the first time by contacting one of our experts. We will make sure you submit all the right documentation at the right time. This is the only proven way to speed your funding.

A Tower Perrin Study * reported that in 2006 $161 billion was paid to injury victims and their attorneys. If one assumes that one third of this amount represents contingency fees, then approximately $105 billion is paid to plaintiffs each year. New structured settlements are created at a rate of approximately $5-6 billion every year. According to Standard & Poor’s**, in 2004 the cost of all outstanding structured settlements was approximately $80 billion and was expected to grow by $6 billion that year.

Also according to Standard & Poor’s**, as of 2008, there were more than 500,000 structured settlement contracts outstanding in the U.S.

Please call or email us to learn more at 1-866-256-0088 or info@strategiccapital.com

Here are few other costly money blunders you should avoid that we have found:

Thinking of today and not tomorrow

We all want to feel good.  And sometimes we make the mistake of thinking that buying stuff or going on holiday will make us feel good.  We will certainly feel good for a short time when we spend money on those types of activities.  But, if we use credit to do those kinds of things, or if we spend all our money ”today” and don’t save money for our future, then we will not feel good or be happy in the long term.  We will feel good and be happy for a week or two on holiday or for a day or two after we buy something, but the rest of the year we will feel stressed and unhappy – it may not be worth it.  We need to balance our spending and our saving.

Motor toys – the biggest cash drain

A big mistake is to spend too much money on the latest model car.  In fact, a big mistake is to spend too much money on any of the latest toys, whether they are cars, cell phones, TV’s or any other gadget.  Try to make your “things” last longer, don’t buy the latest model, and then put the money you would have spent on the latest toy into your retirement account.

You don’t have a firm budget

One of the main reasons why people can’t get out of debt, or are in debt to begin with, is because they don’t stick to a budget. Budgeting is the only way to truly manage how much money flows in and out and see where you can make some cuts to your spending. If you budget correctly and realistically, and you have the will power to stick to it, you will always find a way to control your living expenses and save for your future.

Misusing your credit cards

If you only pay the minimum on all your credit cards, you’ll never pay them in full and you’ll end up paying way more interest than what you had initially spent.  Credit cards should be used only for the convenience of not having to carry cash.  Credit cards should not be used as an easy form of borrowing – they are too expensive (their rates are too high) and you should not borrow money for your daily living expenses.  I know this may sound counter intuitive, but it’s always better to pay off the credit card with the smallest balance first and then work your way up to pay off your larger balances. If you first repay the smallest credit card balance in full, that’s one less minimum balance to worry about.

Living  beyond your means

Too many people spend more than they are bringing in.  People like to spend money on new things, on eating out, on making sure that they are looking good !  That’s ok, if you can afford it, which means that as long as you are saving some money and spending less than you are earning, then go ahead and spend, spend, spend.  But, if you struggle to make ends meet every month, or you see your credit card balance go up every month, then you know that you are spending more than you are making, and you are heading for a pile of stress and unhappiness.  Do whatever you can to stop doing that!  It may be uncomfortable for you at the start because you feel that your standard of living is going down.  BUT, you will be much happier at the end, because your standard of living will actually go up, as you stop paying too much interest, as you save more, and as you have more money for investment and retirement.

No one is perfect, and it’s easy to make a money mistake every now and then. But not learning from your financial miss-steps is silly and can cost you tens of thousands over the years.  for the next few days we will be posting costly money blunders you should avoid that we have found.

Not paying off your debt

So you’re carrying a big balance on your credit card year after year, you still have student debt ten years after graduation, and your car loan has more mileage on it than your vehicle. What are you doing? Debt is not your friend, and paying all that interest is keeping you from financial freedom. Get the debt load off your back by paying more than the minimum balance on your credit cards and by making a special effort to pay off ALL your debt.

You don’t know how much money you owe       

If you don’t know exactly how much money you owe to your various creditors, you’ll never be able to accurately manage your debt and pay it off. Don’t run away from your bills – calculate how much you owe to the last penny and then make a plan that you can stick to in order to pay it off – even if you can only manage to pay a tiny bit off at a time.

Not paying yourself first – a.k.a. not saving enough

Making steady contributions to your retirement savings plan could help you build a bigger nest egg and retire sooner.  It is so important to save a little bit of money from every dollar you earn.  You pay your creditors the money that they want, but so often we all forget to pay the most important person : ourselves !  That’s because at the end of the month, there is nothing left after we’ve paid all our bills.  Here’s a better way: pay yourself FIRST, just a bit, and then pay everyone afterwards.  You will be amazed at how your savings or retirement fund will grow.

Misuse of credit

Loans should not be used for consuming things.  Loans should only be used to buy something that you think will be an asset and that will be worth the same or more in the future. That’s the way to get ahead.  If a loan is used to buy things that we use , then we will fall further and further behind, because, at the end of the day, we will still have a loan, but we will have nothing to show for it.  So, taking out a loan or a line of credit to buy something that should go up in value, like a house or a business is a reasonable action.  But to take out a loan or carry a credit card balance to buy things that we use or that go down in value, like food, or restaurant meals, or a TV, is not a good thing and should be avoided.