While annuities can be a useful financial tool, they are often more trouble than they’re worth. Thankfully there are ways to take them off your plate and get cash for annuity payments to gain what you need from an annuity in a more realistic timeframe.
There are several types of annuities. There are immediate annuities, fixed annuities, variable annuities, and equity indexed annuities. The good news is all annuities offer tax-deferral. From the time you put money into an annuity, any future taxable interest or gains are not annually taxable. However, more advantages of annuities turn into disadvantages down the road. Sure, you get the tax deferral if you’re accumulating, but when you take distributions, which are extremely common, there are some nasty surprises.
Here are some examples:
Fortunately, you can sell annuity payments. Selling your annuity can afford you the opportunity to do any number of things without the continued hassle of being taxed and taken advantage of. Getting cash for annuity payments is a great option for those who need a large sum of money sooner rather than later, for those who perhaps inherited an annuity and don’t have the means to maintain it, or for those who are just tired of the expensive surprises that go hand in hand with withdrawing anything that doesn’t fit within the timeframe allotted. If you’re asking yourself, ‘can I sell my annuity? Is this a viable option for me?’ it might be time to consider getting cash for annuity payments and other options and see what best suits your financial state of affairs.