Annuities vs. Structured Settlements

Annuities vs. Structured Settlements

This video compares annuities and structured settlements, highlighting their different origins, payment structures, tax treatments, and selling processes to help viewers understand which option may best suit their financial needs.
Video Transcript
Annuities vs. Structured Settlements Understand the differences and commonalities between these two options. Where They Come From Annuities:
  • • Can be purchased for various reasons, such as retirement planning or wealth management.
Structured Settlements:
  • • Typically the result of a legal settlement or a judgment related to a personal injury.
Payment Structures Annuities:
  • • Variety of payment structures, such as fixed and variable payments, depending on the type of annuity and terms of the contract.
Structured Settlements:
  • • Fixed payments over a set period of time.
Taxation Annuities: • Subject to taxes on the portion of the payment that represents investment gains. Selling payments can have tax consequences. Structured Settlements: • Generally tax-free. Selling is not taxable. Selling Payments Annuities:
  • • Quicker to sell and don't require court approval.
Structured Settlements:
  • • To sell, you'll need to appear before a judge and make a valid case for why you need immediate access to your settlement money.