Annuities Away! Why Selling Them Might Be Your Best Bet

Lottery annuity

Have you hit the jackpot well and finally managed to win the lottery? Or have you won a lawsuit and gotten some hard-earned money that way? If so, you might have opted for this large lump sum might be getting paid out as an annuity for your retirement, instead of getting it all at once (this usually come with some tax benefits). On the other hand, if you’re wondering what all these words mean, we can break it down for you and help you decide the best way to deal with your newly earned money is. You can even get cash for annuity payments, if you need the money now. For people who already have significant retirement savings, this might be a more attractive option.
What Are Annuities Anyway?
The basic aim of annuities is to keep you well set financially when you retire. An annuity is essentially a contract that gets drawn up between you and the insurance company you use. You put in either a whole sum once or make a series of payments to them and will eventually get that money back in a regular fashion. (In some cases, you can start getting it back immediately.) It’s a form of investment and one only sold by insurance companies. You can also choose how long you receive payments — for a specific amount of time or until you or your spouse passes.
Are There Different Kinds?
Yep, you bet! There are usually three main kinds: a fixed annuity, which is good for more fiscally conservative consumers who are worried about the see-sawing of the fiscal markets. This type pays out at a fixed rate of return. A variable annuity depends more heavily on the flux of the stock market — there’s a minimum amount you’re sure to get each time, but it is a bit more of a gamble. You may have a maintenance fee of between $20 and $30 a year as well — it’s usually no more than two or three percent. Immediate annuities let you start seeing payments in about a month or so.
Why Should I Sell Annuity Payments?
If you’re even wondering, “Can I sell my annuity?” the answer is yes! You can even get cash for annuity payments. If you’re a consumer who feels that their payments no longer fit what they need, you should look into selling your annuity for a lump sum! You can get cash now when you need it and not have to worry about pouring more money into your annuity when it no longer suits your purposes. One option you can take with your newly earned back cash is to reinvest it somewhere that you think will be beneficial to you in the long run. Or if you’re hard up and in debt, that money could be a lifesaver.
Some companies will give you cash for annuity payments and you’re free to use it how you like. You can find these companies online, through word of mouth, or even sometimes in the phone book. A financial adviser or lawyer may also be able to provide you with counsel.

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