Why so expensive?

Why does it cost so much to do this? You get too much of my money. Jeff L.

Jeff,

I agree. This option to accelerate your payout is expensive. We recommend to prospective clients that they pursue other means of raising capital before settling on this solution. Home equity, pay day loans, loans from family or friends or your local bank. In some cases debt consolidation or even bankruptcy might be financially preferred consideration for addressing immediate financial needs.

Often our clients have tried these methods already and now find themselves in a very difficult money crunch.

Why does it cost so much? Think of it as a mortgage in reverse. You buy a home for $200,000 and pay $400,000 over 30 years. This is taking that lump sum due in the future, and tracking it back to its present day value. This value is significantly less that the value of the payout at maturation.

On top of that are legal fees and of course profit for the company. The fees Prosperity Partners makes for servicing an annuity transfer is significantly less that what it appears. In fact, due to heavy competition in the industry, fees have decreased substantially the last 3 years. To the point where we will almost be handling the file for free.

Another cost to consider the cost of not doing this transaction. We have saved hundreds of homes, paid for many college educations, new businesses, and decreased the stress and pressure of a heavy debt load for nearly every one of our clients.

Me personally…I wish it wasn’t so expensive. And we will continue to find ways to decrease costs.

Thanks for your question.

Jason