Gathering and reading information on pension advances is an excellent idea if you're considering your cash flow options during retirement. The good news is that this type of financial arrangement can be an incredibly easy process for those who qualify, and the funds are paid in one lump sum so that you can use them on whatever you want or need. The following is a more detailed description of what you need to know if you're thinking of applying for a cash advance on your future retirement fund payments.
Finding Out If You Qualify
It would be a waste of time to research this financial arrangement if you won't even qualify for one, so before you go any further it's essential to find out whether you do. Leading financial institutions such as US Pension Funding typically have requirements similar to these:
You must be currently receiving pension payments.
If you are a military veteran, you must receive payments for at least 6 months before you apply.
You must display a stable credit history.
Owning a home is advantageous, but stable renters also often qualify.
A Chapter 7 Bankruptcy is acceptable as long as it's discharged at the time you apply.
If you have a Chapter 7 Bankruptcy, you may qualify if it was discharged two or more years ago.
Learning More About Your Options
The important thing to remember is that this is an advance; it is not a loan. You are selling an asset in exchange for a lump sum of money that you can use for a variety of purposes. Rather than waiting years to set aside money from your payments each month, you can have the cash you need right now to pay for whatever you want or need.
Just consider some of the following things people use their advances for:
Attorney fees
Credit card debts
Medical bills
Purchasing a new home
Buying a recreational vehicle
Taking a dream vacation
Starting a new business
Taking advantage of investment opportunities
College tuition (for a young loved one or perhaps for that master's degree you've always dreamed of having)
Once you have determined that you will qualify, you will need to figure out how much cash you need now and/or how much of your future payments you will be able to live without. The most common arrangement is a period of eight years. The financial institution that you are dealing with will provide you with a lump sum in an agreed upon amount, probably in the form of a check or electronic deposit, and in exchange, they will receive your payments for the agreed upon time. Once that time period is over, you begin receiving your payments again as usual.
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