There are plenty of reasons why you may have purchased an annuity years ago; when the Great Recession hit and people started losing their pension plans like crazy, many Americans realized that they needed to act ASAP in order to secure their financial future and be able to fund their own retirement. Just as many people who were victims of a lawsuit chose to receive their compensation in a structured settlement annuity, because it functions a bit like a paycheck and ensures that they receive money on a regular basis. For anyone who has the tendency to over-spend or just isn’t great with planning, annuity settlements often seem like the best option.
But over the years, more of these people have realized that annuities aren’t always so great, which is exactly why recently there has been increased focus on selling an annuity settlement, selling lottery payments, and selling fixed annuities. So are you interested in selling your annuity? Here are a few reasons why you should:
- To pay for home projects, education, or starting a business. With an annuity, you might not get enough money in your first few regular payments to cover the cost of school tuition or a home renovation project. It’s important to remember that these endeavors might be expensive, but with careful planning, they really are great investments.
- To get out of debt. It’s common for people to go into debt after winning the lottery because they fall into this mindset where they aren’t thinking about expenses; the same trend is often seen when celebrities and athletes end their professional careers but don’t know how to end their extravagant lifestyles. If super-wealthy people can easily fall into financial problems, then there’s no reason to feel ashamed if you struggle with debt, too. The majority of Americans really struggle to pay off things like student loan bills and medical bills; if you can access a lump sum of cash by selling your annuity, you get a chance to start fresh.
- To control your own money. It’s kind of ridiculous that you aren’t able to control your own money when you put it into an annuity, and you may even be penalized if you decide to withdraw any of it before the pre-determined date/age limit. It’s already your money; if you decide that selling your annuity is the best option, you gain the ability to control your finances as you like.