Can you as an individual buy an annuity and set up a structured settlement arrangment?  You sure can!  Many people have taken a lump sum from an investment or inheritance and bought an annuity to fund a steady income stream for years.  So, how do you do this?

If you are looking into structured settlement funding as an individual, you can accomplish this style of arrangement without needing lawyers and others involved.  With a little time and effort you can find the right company to handle your annuity needs.

One of the best options for you is to use the internet and search for annuity companies.  There are many out there, so knowing which one is best can be a tough decision.  There are a couple of options you do have to consider when looking to buy an annuity and setting up your own structured settlement style fund.

One of the first is to consider the reputation of the company.  You can find out a lot on the company by searching the BBB website for any history of complaints.  Most companies also have to be insured by the Securities and Exchange Commission.  Word of mouth is also a good method.  Just because a company is splashing around commercials online or on the television doesn’t mean that they are a good company.

Another consideration is the fees that you will pay.  Yes, when you are buying this there are usually some fees and charges that you might have to pay to set up your annuity.  Of course, these fees and charges will vary between the companies that you choose.  You can use this to your advantage and negotiate lower rates and fees.

The other point to consider is how you actually want your annuity set up.  This needs to take into consideration what the purpose of the annuity is for.  If you are wanting to fund your retirement years, then maybe a 30 year guaranteed payment isn’t a good option depending upon your age.  However, if you are wanting to fund the care for a special needs child, the 30 year guaranteed payment is probably a good option.  Just make sure that you have a beneficiary established in what ever funding schedule you set up.

The annuity is a great option for a structured settlement funding option for individuals that are not involved in a lawsuit or settlement of a personal injury or workers compensation claim.  Knowing how to set it up to your most advantageous tax status is going to take some time and it wouldn’t hurt to check with a financial planner that is not working for the company you are talking to or dealing with, sort of a second opinion will help clarify your decision.