[MoreCowbell]

Can I sell, as some sort of an annuity, a 5% share of my future earnings to somebody, and collect the present value???

Obviously, i'm not looking to do this, but I am curious if it has been done or could be done.

Wouldn't it be interesting to open a firm that offers such a product?

Thoughts???

[Maestro]

yeah it can be done, stupid sport stars have done it with long term contracts since they do not want to wait for the money to roll in over the years.

There are companies who will pay you money today to get have access to future stock options that a company gives you. From my understand Execs do this since they are limited when they can sell option and grants so they sell those to third party and then take the money and invest elsewhere then the person who now have control of the option tell the exec when and how much to sell as long as it falls within the insider trading rules.

[achien]

Originally Posted by MoreCowbell

Can I sell, as some sort of an annuity, a 5% share of my future earnings to somebody, and collect the present value???

Obviously, i'm not looking to do this, but I am curious if it has been done or could be done.

Wouldn't it be interesting to open a firm that offers such a product?

Thoughts???

I know financial institutions already do this sort of thing to lottery winners. Giving them a lump sum, in return for their future cash flow from their lottery winning.

If you can find someone who believes in you, you may be able to get a good lump sum. The irony is, giving away 5% of your future earnings, like taxes, will actually de-motivate you from earning more (assume more monetary compensation correlates directly to more personal sacrifice).

[Brunotheboxer]

my uncle angelo will "loan" you some money.

[Maestro]

Originally Posted by achien

I know financial institutions already do this sort of thing to lottery winners. Giving them a lump sum, in return for their future cash flow from their lottery winning.

This is why states now offer this option to Lottery winners, you can get the 20 yr annuity or the lump sum payout which is usually half of the total take.

So you can get $100 million over 20 yrs or $50 million today, less 50% in taxes, so in your pocket and out the door you get $25 million. The lump sum is such a deal for the states.

Do you know that most all take the lump sum, of those 9 out 10 end up in bankruptcy in 3 to 5 yrs.

They have not figured out their factory job can not maintain the cost of the million dollar home they just bought.

[achien]

Originally Posted by Maestro

This is why states now offer this option to Lottery winners, you can get the 20 yr annuity or the lump sum payout which is usually half of the total take.

So you can get $100 million over 20 yrs or $50 million today, less 50% in taxes, so in your pocket and out the door you get $25 million. The lump sum is such a deal for the states.

Do you know that most all take the lump sum, of those 9 out 10 end up in bankruptcy in 3 to 5 yrs.

They have not figured out their factory job can not maintain the cost of the million dollar home they just bought.

That's correct! If they hadn't chosen the lump sum option, they would have been sold with the idea of taking the lump sum from the financial instituions. Which in turns take their money and promise amazing returns. But in fact, they will rob slowly, but surely, that principle through investment fees and un-ethical trading practices. Nothing but crooks out there.

[Bimmerista]

David Bowie did it with future royalty streams from his past hits.

Not sure if any of the examples though can work, because in each case there was certainty at the time the contract was entered into about the future income stream (lotery winners were sure to get the annual amounts, rock stars as well -royalty streams, sports stars as well - the long term contract was signed already).

The biggest obstacle would be the certainty (and therefore quantum for valuation purposes) of the future income stream.

So if you are the beneficiary of a trust fund annual payout, I would say you could do it.

Otherwise i would say no.