Having cash flow issues? Tired of collecting money that was due to you years ago? Here are the benefits of selling your annuity for a lump sum.
Are you receiving an annuity or structured settlement?
If so, you can use it to get the cash that you need, right now.
Although an annuity can be a great investment option, sometimes you just don’t want to wait. By selling, it’s possible to get all or part of the annuity’s lump sum.
There are plenty of reasons that you should want to cash out on your annuity. It could be to invest, pay off debts, or just switch to a better retirement option.
Want to find out more? Keep reading to find out five benefits of selling your annuity.
1. You Can Buy A House
Buying your dream home makes sense if you’ve been renting for a while. It’s an investment in your future and your children’s future.
The average price of a home though is almost $200,000. It’s one of the biggest purchases you’ll ever make.
This makes it a perfect fit for selling annuity payments. The down payment can be anywhere from 5 to 10 percent of the house’s value. You can use the money from your annuity for it and be on your way to home ownership.
2. Being Able To Pay Bills
One of the major reasons to sell annuity is to pay off bills.
Often people get an annuity after an accident in the form of a structured settlement. Selling structured settlement payments can give you peace of mind that your medical bills will be taken care of.
As it’s often an unexpected cost, surgery can be extremely costly. You can also sell your annuities to pay for surgery or other medical expenses.
3. Paying Off Loans And Credit Card Debt
We all have debts, and loans and credit cards are a major source of them. Getting hit by interest every month, while waiting for your annuity payments to come in every year, can be torture.
By selling your annuity you can get cash right now and clear all of your debts.
4. Making Finances Easier During A Divorce
Often you have to sell annuity payment during divorce since it’s a shared asset. You may have to sell the whole thing or just part.
Depending on your finances, it’s sometimes necessary to sell just to have enough to survive after your split. Divorce is draining both emotionally and financially. Selling the annuity can help ease your pain just a bit.
5. By Selling Your Annuity You Can Invest
Is there a time-sensitive investment you’ve had your eye on? A business idea that you can’t get off the ground without some cash?
Those annuity payments you collect every year are your chance to invest and see your money grow. You don’t have to wait, and you’ll be getting a return on your investment, so it’s a win-win situation.
Planning For Your Financial Future
Selling your annuity can seem like a big decision, but hopefully, you’re more prepared now to get started. The good news is, you don’t even have to sell the whole thing. It’s possible to sell a certain number of payments.
Ready to take charge of your financial future? Plan for a comfortable retirement by reading about retirement plans on our site.