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In its Personal Injury Settlement FAQ Law.com states that "usually companies will pay you 20 to 50 cents on the dollar to purchase your right to future (structured settlement) payments". This conjures up the classic image of Winthorpe trying to unload a $6,000 "Ross Fuquot" watch in a Philadelphia pawn shop in the movie Trading Places and being told " in Philadelphia it's worth fifty bucks"

Movie Videos & Movie Scenes at MOVIECLIPS.com Does Law.com present an accurate depiction? Let's say we have an annuitant who is seeking to raise money and is contemplating the sale of $1,000 per month from January 1, 2011 for 120 months. This represents a total payout of $120,000 in income tax free payments.

Cash Raised    Discount Rate  Pct of Future Value

$30,000           35.699%                 25%

$35,000           33%                        29.16%

$50,000           19.65%                   41%   

$65,000           12.98%                   54%

$70,000           11.23%                   58%

$77,500            8.936%                  64%

Rates below the line represent a much fairer depiction of what annuitants trying to sell structured settlement may be able to get in today's market IF they shop around or go to a factoring exchange. Shopping around also means that the annuitant who has no alternative but to raise cash in this manner, who takes the initiative, can leave more payments intact.

Use the FREE Structured Settlement Factoring Discount Rate Calculator

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