It’s no secret to anyone that the last few years have not been kind to our collective pocketbooks. Between the housing bubble bursting, unemployment skyrocketing, and the relentless rise in the cost of living, the last few years have not been a great deal of fun for a lot of people. So it shouldn’t be all that much of a surprise to see that a lot of secondary annuity buyers have cropped up on the financial scene, all vying for the attention of those that are looking to turn their annuities of tomorrow into cash today.
And if you have an annuity and have been affected by the economic downturn, you could very well be thinking of receiving cash for payments. There could several reasons for this, such as:
- You are looking to buy a home
- You have mounting debt from credit cards, student loans, and medical bills
- You want to invest in another business venture and you need capital
Regardless of your reason, there are plenty of businesses that want to do business with you. However, before you engage in cash for payments situation, there are a few things you should note about your own annuity.
Knowledge is Power
Before you even talk to anyone about your annuity and getting cash for payments, you should understand the terms of your own annuity to the letter. When you meet with a secondary buyer, you will undoubtedly be faced with several questions pertaining to your annuity. Therefore, it is in your best interest to get as familiar with the ins and outs of your annuity so you can address any and all questions competently and confidently. And if you see anything on the contract that confuses you, don’t play guessing games. Rather, get together with a financial expert that can answer your annuity questions in plain English. You should also be sure to consult with an expert when you receive the final paperwork confirming the cash for payments agreement just to make sure everything checks out.
Play it Safe if Possible
If you are in a dire financial situation, you may be tempted to sell your entire annuity to a secondary buyer. However, before you do, it would behoove you to take a look at holding on to at least a little bit of the annuity. One of the options that are available to you in cash for payments situation is to execute only a partial sell of your annuities. If you take this option, you will still receive money that you need in order to help you clear that financial hurdle. However, you will also have some income to look forward to once you retire, which is something that you won’t have if you cash out everything in one fell swoop.
That said, it should be noted that there really is no right or wrong answer when it comes to cashing out annuities. Every person’s situation is vastly different from each other, which means everyone’s solution differs. Nonetheless, any situation that is made pertaining to an annuity should only be done after extensive research and study in order to ensure whatever solution is decided upon is the best possible solution.
The smart and safest way to grow your financial future and build a bigger nest egg is through sound financial planning and using your capital today instead of waiting for it to arrive each month at a stagnant rate. You can ask any successful business owner how they got ahead in life and not one of them will ever say that they got ahead by playing it safe and waiting for an annuity or structured settlement check to arrive each month. The choice is yours but end the hardship now and get a jump start to your financial future.
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