Considerations When You Want To Sell Annuity Payments
- This was posted on October 27, 2009
You have an immediate need for cash, but you’re not sure where to get it from. If you’re sitting on lottery winnings, life insurance policies or an annuity, you might already have your answer. Making the decision to sell annuity payments, however, is a serious choice that does demand some careful consideration.
Before you find a buyer of structured settlement annuity payments, it’s a very good idea to review your options and highlight your personal financial goals. Prior to selling, ask yourself:
What do I need the money for?
In some cases, there are rules that dictate what structured settlement payouts can go for. Bill consolidation and emergency funding are typically acceptable. Do consider the need even if regulations are not in place. Cashing in a settlement when other options are available doesn’t always make sense.
How much money do I need?
Whenever possible it is a very good idea to only sell annuity payments in the amount necessary to cover the pressing need. Retaining a steady income stream from your annuity is always a good idea when possible. Reputable buyers will try and help you retain part of your annuity so you can still have income coming in you can count on even after the pressing financial need has been met.
Is it possible to get the money from another source?
Before selling your annuity in part or full, consider other funding options. If you want to make a purchase that can wait while you save, holding off might be in order. If you need immediate cash and there are no other options that add up, a sale could very well be in order.
Choosing to sell annuity payments can turn out to be a very wise move in a number of circumstances. Just weigh the options before diving into the proposition to make sure this is the best choice for your personal situation.
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