If you have an annuity settlement and you’re getting really frustrated with it, you definitely aren’t alone. Hundreds of people — if not thousands — each year turn to services when they want to sell annuity payments, structured settlements, or even lottery payments, and get a lump sum of cash upfront.
Here are just a few of the more common reasons why people choose to sell their annuities, and why you might be interested in selling your annuity, too:
- There are many different kinds of annuities out there today, and you’ve probably heard good and bad things about all of them. That is, if you can keep all the different types of annuities straight! To be honest, the majority of Americans don’t understand all the details of annuity agreements, so navigating this complex financial situation just turns into a mess very quickly.
- The most common annuities are the ones that actually tie up your money for a long time — either for a certain number of years, or until you reach a certain age. Many people will tell you that this is to ensure your financial stability in the future, but it can be annoying and frustrating that you don’t have complete control over your money. Even if you start receiving payments immediately, these payments are only a fraction of the total amount that you own.
- If you choose to withdraw your money from an annuity all at once, you could be forced to pay early withdrawal fees that are as much as 7% to 10% of the total amount! Selling your annuity payments is typically the better option because you get all of your money at once, and without worrying about those pesky fees.