Selling your annuity can seem like a daunting process simply because it’s such a big decision to make — the actual process to sell annuity payments is actually pretty straightforward and simple, believe it or not! When you find a good company to work with, all it takes is some basic paperwork and a court visit to finalize the sale and to make sure that everything is in order for all parties involved; you’ll get the freedom to use your money as you see fit, and you won’t have to deal with steep taxes or early withdrawal fees.
The one thing that you still need to figure out, though, is what you’re going to do with your money after selling your annuity! Many people choose to pay off debts or invest their cash, but that’s only the beginning of your options:
- Pay off credit card debt. The average American home has about 13 payment cards and has about $3,761 in revolving credit owed to lenders; in fact, the majority of American families spend more each year than they make. Using your annuity payments to pay off outstanding debts can help you get on stable ground in terms of financial security.
- Going back to school. According to the College Board, the average private university tuition cost over $30,000 and the average public university cost over $9,000 for the 2014-2015 academic school year. Getting your degree (or possibly another degree) is expensive, but it’s something that will help you in the long run!
- Make some new investments. One of the biggest advantages of selling your annuity is that you get all your money upfront and you have the ability to make big investments which actually produce a profit rather than sitting in an account just depreciating in value. Working with a good financial adviser will help you make the most of your money after you sell annuity payments.
When it comes to selling an annuity settlement, or even a structured settlement or a lottery annuity settlement, the best part is that you get to use your money however you wish!