Can You Sell Your Future Annuity

Finance For years, annuities were a popular way to save for retirement. They were perfect for people with low tolerance for risk and the guaranteed in.e stream made budgeting easy. The growth of the money was tax-deferred so the annuitant would typically pay fewer taxes assuming their retirement in.e was less than their current in.e. However, change is inevitable. Whether it is job loss, death, illness, tax troubles or unexpected medical expenses, many annuity owners are discovering they need more flexibility from their investment. The appeal of an annuity suddenly less desirable as their need for liquidity increases. Luckily, single premium fixed annuity owners as well as structured settlement annuity owners have options. Some annuitants will tell you that they have the option of surrendering their annuity to the insurance .pany. While this is indeed an option for some annuitants you need to check the fine print. Many times you cannot cash out if you already started receiving payments. Also there are surrender fees from the insurance .pany that need to be considered. If you are looking to have immediate access to all or part of your future payments, it may make sense to sell all or a portion of your future payments on the secondary market for a cash lump sum. With a cash lump sum you can use the money to start a business, pay off debt, avoid foreclosure or purchase a home. The money is yours to use however and whenever you want. In many instances, the amount of money you will receive is larger than the cash-out value from the insurance .pany. In addition, the discount rate is usually lower than the interest rate of most credit cards. Selling your future annuity payments does not require a credit check and since it isn’t a loan it doesn’t have to be paid back. It has no affect on your credit score either. It simply is a way of gaining access to your money now instead of waiting for later. When it .es to selling your annuity payments the seller should do their homework. Using a reputable .pany, such as Rescue Capital, with an A+ Rating with the Better Business Bureau is an excellent start. Also making sure that there are no .plaints with your state’s attorney general’s office is important too. In some instances there are tax implications as well as other financial situations to consider therefore consultant a reputable tax professional before you sell. Lastly, it is important to go with a .pany you can trust and will be by your side throughout the process. About the Author: 相关的主题文章: