If you have a need for a large chunk of money, but you don’t want to take out any more debt, consider U.S. pension funding advances. This service allows you to get an advance on some of the money that you are owed through your pension, which allows you to accomplish the financial goals that you want. Here are four commonly asked questions about pension buyouts and their answers.
1) How do private pension buyouts work?
Basically, if you are a civil servant of some sort, you will receive a pension to help you pay your bills and live life after retirement. Often, this money is more than many people need once they are empty nesters looking to simplify life and have some fun. If you need money for a large project or expense, a company can buy a portion of your pension and, in exchange, give you part of that money as a lump sum.
2) What can I use my pension lump sum for?
The great thing is that you can use your pension lump sum for a number of purposes. You can pay off credit card or other debt with the money, which can be a really smart idea. Due to the fact that this is not a loan, but more of an advance on money that’s already owed to you, you will typically come out ahead in the long run by paying off debt with pension sums. If you pay off debts early, you will save yourself a lot of money in interest that accrues over the years.
Pension money can be used for more than just debt, though. You can start the business venture you have always wanted to undertake, finance a divorce, plan the vacation of your dreams or make those home renovations that you have been dying to do.
3) What do I live on if I sell my pension?
You won’t be selling your entire pension with buyouts. Rather, you can determine how much of the pension money to sell by figuring out how much money you need for your financial goals. There may be a limit and a minimum, but typically, you will be selling around an eight-year portion of your pension in an amount per year or month that works for you.
You can still receive some of your pension money during this time, and any savings or investments that you have will be unaffected.
4) How do I find out the amount received for my pension?
Getting an estimate is simple. Go to the website of a Better Business Bureau certified pension buyout program, like www.uspensionfunding.com, and fill out the online form. You should hear back within 2-3 business days via fax, email or postal mail.
Jessica writes about a wide variety of topics. She especially enjoys writing about finances. You can learn more about private pension buyouts at http://www.uspensionfunding.com/
- Be Ready For Retirement & Plan Your Pension Now (2009taxes.org)