You’ll get the money eventually, but you will get it only a few hundred dollars at a time. It’s your annuity, and you are very tempted to be done with the whole process and just sell it all. You’ll get a huge payout and that money will finally all be yours. It’s yours anyway, right? Well, you need to think long and hard before you sell annuity payments. You need to consider a few points before you jump off the annuity train with both feet. Selling annuity has its bad points too, so consider every side before moving forward with your sale.
There are Less Expensive Sources of Funding
Are you considering selling that annuity for your child’s education, to start a business or to fund a new home? There are cheaper ways to fund these life changes than selling annuity. You need to consider interest rates and find out where the lowest rates lie. Take advantage of the lower rates because you might find that the lower rates are in places other than if you sell annuity payments. Weigh each option before rushing to sell what you have tied up in annuity.
Do You Really Need the Money?
Consider if you truly need that money. Some of us can live comfortably with what we already have and we only want to sell annuity to acquire what we want. Look over your lifestyle and truly evaluate wants vs needs. Are your needs currently met? Are you truly taking the money out for those needs? If you do have immediate needs, consider selling only part of the annuity instead of the whole thing. Your needs are met and your annuity continues to stay in place while you work toward your goals slowly.
It’s Too Early in the Annuity
Some people get annuities then get nervous that maybe they should have taken the money in a lump sum. They rush to sell the annuity right away and lose a great deal of money in their hurry. If you’ve taken an annuity, think about how great that money will be later in life. Again, consider your immediate wants and needs. Do you truly need the money? If you can survive without the money, leave it alone. Let it grow interest and rest a while. If you are having a tough time making the decision, rest on it for at least a week. The money will wait while you sort out your priorities.
It’s Too Late in the Annuity
Yes, it can be too late in the annuity to sell annuity payments or for selling annuity. You will know it’s too late to sell the annuity by evaluating how much you want to get out of the annuity and how badly you need the money you are about to receive. If there is a short amount of time on the annuity, it’s best to leave it alone if you can handle it financially. You will receive the last of the money and you won’t lose much of it because you have not sold it to anyone. You have options for the end of the annuity and contacting a company to help you explore the options is always a smart move. Again, it really comes down to assessing your own situation and considering if you truly need the money. Do not talk yourself into believing you need the money if you really do not need it. It’s smarter to leave it alone, especially if you only have a few years left to receive the balance.
AUTHOR BIO
Mark Long knows about how selling annuity works. He understands what drives others to sell annuity payments and loves to communicate about the topic. He’s very good at explaining the pros and cons of selling your annuity to someone else in exchange for one large lump sum of cash.
end of post idea for home improvement
view and analyze home improvement ideas at our LetsRenovate center
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.
