Author Topic: pruchasing someone elses pension/lottery winnings/settlement income  (Read 1819 times)

rob in cal

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    I heard about the idea of purchasing the rights to someone else's pension on one of those always trustworthy paid radio spots.  Information source aside, is this a viable possibility?  I'm guessing it would be similar to buying someone's rights to future lottery payments. Pay a lump sum now, in return for future payments. In terms of buying a pension, I'm guessing it could be coupled with a life insurance policy on that persons life to protect against premature death.  Anyone ever do this, or hear about it?

One Noisy Cat

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Re: pruchasing someone elses pension/lottery winnings/settlement income
« Reply #1 on: December 28, 2015, 01:48:58 PM »
     I've read that former baseball player Darryl Strawberry owed back taxes to the IRS. They confiscated an annuity from his 1985 contract that pays $100,000 a year from 2014 to 2033. Winning bidder paid something like $1.4 million.

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arebelspy

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Re: pruchasing someone elses pension/lottery winnings/settlement income
« Reply #3 on: December 28, 2015, 03:05:58 PM »
Yeah, you can purchase them. One common one is purchasing settlements (lawsuits, injuries, etc.) that are paid out over time.

Discounted notes exist for all kinds of things, you'd be surprised.

Finding them is the trick. There's no market where you just go purchase them.  The people who do this have a business doing so.

They advertise, and send yellow letters.

It's not worth it on a small scale, IMO, only if you want to start an ad business, basically.  The amount of volume you have to send to get hits, and the amount of work, makes it infeasible to do one-offs.
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rob in cal

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Re: pruchasing someone elses pension/lottery winnings/settlement income
« Reply #4 on: December 28, 2015, 03:13:49 PM »
   No, I wouldn't be interested in trying to get pennies on the dollar off someone who has had a serious injury settlement, more like purchasing someones future stream of income payments at a legitimate price, but still make out better than if I had purchased an annuity on my own.

arebelspy

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Re: pruchasing someone elses pension/lottery winnings/settlement income
« Reply #5 on: December 28, 2015, 03:54:39 PM »

   No, I wouldn't be interested in trying to get pennies on the dollar off someone who has had a serious injury settlement, more like purchasing someones future stream of income payments at a legitimate price, but still make out better than if I had purchased an annuity on my own.

Sure, I understand that.

What I'm saying is: How do you find them?

The businesses that do this literally have to go searching, and advertising.  They often try and track down and contact people who win big on TV shows, for example (which are usually paid out over time).

These people already have companies contacting them, likely, if you can find them.

It's more difficult than you're picturing it to be, is what I'm saying.

One approach may be to contact a company who does this and see about using them to find one (repurchase one from them, or fund one, basically, and let them scalp a middle).
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.