Pension Payments : Instant Collateral
So you are finally ready to retire. You’ve put in 30, maybe 40 good years at your company and now you’re ready to kick back and collect those pension payments. But what if, upon retirement you want to buy a vacation home, but don’t have the down payment to lay out? Or maybe you decide you want to go back to school to get that MBA you always wanted to complete but never had the time for? Finding large sums of money for items like these can be difficult. But there is another option - early pension payments. There are reputable companies who can give you cash advances on your pension payments, using the plan itself as collateral.
This arrangement is different from a loan, where repayment is calculated on a term basis. When you receive an advance on your pension payments, a company will actually buy a certain number of your payments in order to give you a lump-sum of cash. Then, instead of having to repay that amount, you simply give up your right to a specified number of future pension payments.
The benefits of this type of cash advance are many. First, most types of pensions are eligible, including military and civil service pensions, as well as public and private corporate pensions. Also, the cost for using this service can be less than the cost of traditional financing. Also, your cash advance can usually be processed quickly, which is the biggest benefit of all, because you are then free to use your money as you wish, to pursue that home, that degree, or whatever your heart desires.
Comments(1)