Selling Your Annuity

Sold my Annuity

 
An annuity is a fixed sum of money paid over a given period. It could be inheritance, lotto winnings etc. Annuities are normally paid or dealt by insurance companies.

You can sell you annuity for anyone one lumpsome, but this depends on the type of annuity that you are being paid.

1. Transferable Annuities can be sold
2. Pension Annuities, workmen compensation payments cannot be sold

When people wonder about their annuities, the ponder if selling their annuities is the best option for them. But people have sold their annuities and will continue to sell their annuities as the needs arise and their situation changes. Some common reason why people sell their annuities is:

1. Purchase a home
2. Purchase a Car
3. College Tuition
4. Clear Medical Bills
5. Pay off Debts

But with all these in mind, you do have the option of not just selling all of your annuity. You can simply sell a portion of your annuity to clear up whatever the expenses are now and continue to receive structured payments for the remaining. When you are going through the process of selling your annuity, it usually takes roughly about 45 days for all paperwork to be reviewed , verified and approved by the court. So lets delve a  little deeper into selling annuity

 If you have an annuity, regardless of what type of annuity, there is a chance that you still do not have enough income to make it from one payday to the next. There is a way for you to get cash for your annuity. You can get cash for your annuity by selling it for a lump-sum of cash. However, sometimes it is difficult to decide whether to keep your annuity or sell it. So, what will it be? Keep the annuity, or opt for a cash settlement? What should you do? Should you keep your annuity payments going? Or should you take the settlement in one lump-sum to help pay the bills and live a more debt free lifestyle?

Those questions are in the minds of many people who hold annuities. Whether it be structured settlements from a lawsuit, annuities, or lottery payments, getting cash in one lump-sum, oftentimes is much better than waiting for the annuity payments. Cash for annuity is not a new concept. It has been around for several years. However, when thinking about selling your annuity there are things you should consider.

First, is the annuity going to pay you the rest of your life? Or, is it only for a few years?

Secondly, what are your financial goals? Finally, does selling your annuity payment for a lump-sum of cash, benefit you the most? Answering these questions may help you decide what you need to do about your annuity.

There is a present value of money, and a future value. Understanding the time value of money will help you decide whether or not you should keep your annuity or opt for a cash settlement. The cash you have today has a present value, and the future value of the same amount of money will be different because of how you invest the money now. So, as with your annuity the amount you have invested in your annuity will be higher in the future, because the interest will be added to the money.

Keep in mind if you decide to get cash for your annuity by selling your annuity payments for a lump-sum of cash, you will no longer have the option of allowing your money grow with interest. Instead, you will have only one settlement payment, which you have agreed upon, and when it is gone, there will be no more money from that particular annuity.

In short, it depends on your particular situation, as to whether you should keep your annuity or get cash for it. It's your decision, and in today's economy, there is somewhat of a need of extra cash flow. Deciding what's best for you and your circumstances can be time-consuming. However, it is worth, the time and effort to weigh all of your options so you can have what you need financially for the present and the future.