Military State And Police Pension Buy Outs
Military, state and police pension buy outs provide options for retirees from the most respected public service careers to cash in a portion of their future pension payments in exchange for a lump sum payment right now. There are many things that a pension buyout can help someone do after 20, 30 or 40 years of service to the state, the military or the police force.
Let’s say a state employee retires after 30 years of service, and they want to buy a vacation home to enjoy with friends and family. A state pension buyout can provide the cash for the down payment. Or let’s say a military officer has retired after 25 years of honorable service and wants to go back to school for an advanced degree to begin a new career later in life. A military pension buyout can make the funding of this education a reality. There are reputable companies that can provide cash advances on pension payments, using the pension plan itself as collateral for the “loan.”
The unique thing about a military, police or state pension buyout is that it actually isn’t a loan at all. When a pensioner receives an advance on the payments they are set to receive in the future, the company they are working with will actually buy a certain number of those payments. In exchange, they will provide a lump sum of cash. This sum will be a lower amount than the sum of the pension payments would have been over the specified period of time, but it can be a financial gain compared to waiting years and saving those payments month after month until you have the amount you need to do what you want to do.
One of the best things about a state, police or military pension buyout is that instead of having to repay that amount, you simply sell a your future pension payments for a specified amount of time. For those who need cash now and have an alternative source of income besides the pension payments for the agreed upon time period, it can be a great option.
Let’s say a state employee retires after 30 years of service, and they want to buy a vacation home to enjoy with friends and family. A state pension buyout can provide the cash for the down payment. Or let’s say a military officer has retired after 25 years of honorable service and wants to go back to school for an advanced degree to begin a new career later in life. A military pension buyout can make the funding of this education a reality. There are reputable companies that can provide cash advances on pension payments, using the pension plan itself as collateral for the “loan.”
The unique thing about a military, police or state pension buyout is that it actually isn’t a loan at all. When a pensioner receives an advance on the payments they are set to receive in the future, the company they are working with will actually buy a certain number of those payments. In exchange, they will provide a lump sum of cash. This sum will be a lower amount than the sum of the pension payments would have been over the specified period of time, but it can be a financial gain compared to waiting years and saving those payments month after month until you have the amount you need to do what you want to do.
One of the best things about a state, police or military pension buyout is that instead of having to repay that amount, you simply sell a your future pension payments for a specified amount of time. For those who need cash now and have an alternative source of income besides the pension payments for the agreed upon time period, it can be a great option.
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