Federal Interest Rate Rise Vs Structured Settlements
Structured settlements are annuities. Annuities grow faster when interest rates are higher. There are “fixed” and “variable” annuity rates. If you were issued a “fixed” annuity, this means there was a stated interest rate at purchase, and it’s guaranteed to stay at the same rate.
This type of annuity will not be so affected by the rise in the Federal Interest Rate.
If you were issued a “variable” annuity at purchase, this means the terms can change. In other words, a rise in interest rates can make your annuity or your structured settlement more valuable.
You could look at this as good news for investors: greater gains as annuity sales spike.
Your investor would be the Transfer Company wanting to buy your structured settlement. The more you know about what you have in your hands, the more money you could make.
Right now, in this economic environment, if you have in your hands a structured settlement, you have a hot commodity. Know this. You have the upper hand.