Personal loans for pensioners in
brisbane
Receiving cash for your military
pension can provide access to more of your money to meet your immediate
financial needs. Instead of waiting to receive monthly pension payments,
you can exchange your military retirement for a large lump sum.
You could spend the money on anything: debts, a new car or house,
a business venture, your child's college education, or even a much-needed
vacation.
The good news is you don't have to repay the money
because it's not a loan. And, you don't have to sell your entire
pension; you can sell part of your payments. You can receive cash
for your military pension payments for a select time, plus retain
any future increases in payments. Then once the specified time passes,
you can continue receiving your full retirement payment, as you
did prior to the sale.
Keep in mind that military and non-military pensions
can easily be converted into a lump sum of cash, but it's a very
expensive process. For example, discount rates for regular pension
payments run 20 percent for assignable pensions and 30 percent for
non-assignable ones. Therefore, you should only sell your pension
if there are no other options available to you.
Consider this: As an active-duty military member retiring
after 20 years of service, you will receive retirement pay for the
rest of your life. The payout, which is based on your years of service
and rank, could be substantial. For example: veterans retiring after
20 years of service in 2006 as an E-8 a usual rank for retiring
non-commissioned officers would get 50 percent of their base pay
or $2,035 per month. Over the next 30 years, these retirement payments
could add up to more than $730,000.
Eligibility for Receiving Cash for Your Military Pension You may
be eligible to receive cash for your military pension if it meets
federal guidelines concerning Veterans Administration disability.
If you're a veteran whose military income comes solely from VA,
you cannot sell your payments. However, you can get cash for your
payments if the VA Disability portion makes up no more then 40 percent
of your total military income. This restriction is part of a federal
legislation (HR 2297) that is designed as a protective measure to
prohibit pensioners from selling their V.A. pension streams. Besides
the disability issue, pension fund purchasers use a variety of other
factors to determine eligibility. While requirements vary among
purchasers, they typically require you to:
- Presently be receiving a minimum monthly pension
payment of $400 dollars after taxes
- Have credit scores of at least 580 from all three
credit bureaus: TransUnion, Experian and Equifax
- Be currently employed or have a secondary income
that allows you to meet your monthly expenses without your pension
payments
In addition, some pension purchasers require life
insurance. Generally, any active insurance policy is acceptable,
even if it existed prior to the sale of your military pension. Also,
there's generally no age limitation placed on pensioners making
the sale. But, ultimately, underwriters will evaluate each submission
on a case-by-case basis to determine eligibility.
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