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Reverse Annuity?
Old 03-31-2005, 06:53 AM   #1
 
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Reverse Annuity?

Hopefully this is the most appropriate forum for this question:

Is there such thing as a reverse annuity where you sign over a monthly government pension for a single lump sum payment? I googled and googled and came up dry.

Thanks.
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Re: Reverse Annuity?
Old 03-31-2005, 07:53 AM   #2
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Re: Reverse Annuity?

Another idea I'm toying with, previously unthinkable.
Borrowing money and paying it back with SS income.
This plan hinges on rates staying pretty low however.

BTW, my offers from the CC issuers for -0- % APR
have pretty well dried up now. I have a nice pile locked in for the next year. Still, if those deals are extinct now (as I suspect) I will sure miss 'em. I did get one yesterday for 1.9% but the rate wasn't locked in long enough to make it attractive.

JG
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Re: Reverse Annuity?
Old 03-31-2005, 08:17 AM   #3
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Re: Reverse Annuity?

The feds, and probably most all if not all local and state governments have anti-assignment provisions so that pension benefits cannot be sold. This is also true for ERISA plans which are also required to have anti-alienation provisions.

Exceptions apply to assignments relating to divorce and the federal government can take most anything for unpaid taxes.

So you can't sell your pension.

Some states even prohibit sale of lottery annuities and court settlements paid through annuities.
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Re: Reverse Annuity?
Old 03-31-2005, 12:14 PM   #4
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Re: Reverse Annuity?

I get 'em constantly too. One interesting one (I think it was from Discover?) offered to take any amount up to 100k with a 2.9 or 3.9% (I forget) balance transfer charge, with the resulting balance being interest free "for life".

In other words, a front load followed by interest free. For someone my age, that could turn out to be a good deal. That 100k could turn a profit the first year in a 5 year CD and kick off ~$5k a year for doing nothing.

Next time I get one of those I need to read all of the fine print.

Edit: Ah hah...there is a catch...to get this deal you have to make two purchases per month on the card, those purchases are charged 9.9% interest, and any payments you make go against the original "0% balance" first. However I note there is no minimum purchase, so you could buy a pack of gum twice a month on the card, and pay a few pennies in interest a year on the 'gum balance'...
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Re: Reverse Annuity?
Old 03-31-2005, 01:53 PM   #5
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Re: Reverse Annuity?

Thanks GD-ER. As soon as I stop pontificating here,
I will be on this big time.

JG
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Here ya go, Tozz.
Old 03-31-2005, 01:54 PM   #6
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Here ya go, Tozz.

Quote:
The feds, and probably most all if not all local and state governments have anti-assignment provisions so that pension benefits cannot be sold. *This is also true for ERISA plans which are also required to have anti-alienation provisions.

Exceptions apply to assignments relating to divorce and the federal government can take most anything for unpaid taxes.

So you can't sell your pension.
Technically true, but now we come to the loopholes.

Military pension payments can be disbursed by allotments, and allotments can go to pretty much anybody/anything (with the possible exception of the Democratic People's Republic of Korea). For example Advance Funding, Inc. would be happy to do the same to for you, Tozz. And I'm sure many other fine financial institutions are volunteering in this Google search.

But I wouldn't do it. You give up a tremendous amount of money and commissions for the access.
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Re: Reverse Annuity?
Old 04-01-2005, 08:43 AM   #7
 
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Re: Reverse Annuity?

Thx Nord (and all). You're my google-meister!

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