Some people are skeptical about selling an annuity settlement. The thought of getting a lump sum of cash now always sounds too good to be true.
They may have heard well-meaning advice from friends who tell them to stick to their monthly structured settlement payments. They may be concerned about the security of their financial future. Or they may simply not understand the process of getting a lump sum annuity payout and think it must be some sort of “get rich quick” scam.
We’re here to clear the air. Sometimes, selling an annuity settlement in exchange for a larger sum of money can be enormously beneficial. Here are some of the most commonly heard rumors surrounding the selling process, and the truth behind these myths.
Myth #1: I have to sell my entire annuity at once.
Not true. You can sell a portion of your annuity payments, large or small, to help get you the money you need upfront. In fact, you’ll be working with a financial expert to help you determine exactly how much you should sell to get the most out of your money depending on your needs and situation. Many people opt to sell settlements at some point in their lives; at the end of 2013, there were 34.8 million deferred annuity contracts in place with more than $2.58 trillion in combined value.
That’s a lot of cash waiting to be claimed.
Myth #2: I’ll get less money in the end if I sell my structured settlement annuity now.
Not necessarily true. While there are some fees involved in selling your annuity, there are ways you can invest that money to grow your financial assets in the long run. For example, you might buy a house requiring a 5, 10, or 20% down payment on the sales price. The more you pay upfront, the less you’ll be spending on interest and mortgage payments later.
Myth #3: I won’t be able to pay my monthly bills without my structured settlement check.
Again, your finances are what you make of them. Selling an annuity settlement might be the push you need to start a business or get an education, which can lead to a higher-paying job and a better future. According to the Kauffmann Foundation, it costs an average $30,000 to launch a new business today. With that money, you could be working for yourself instead of depending on a monthly check.
Money management can be stressful, but selling an annuity settlement shouldn’t have to be. You can speak with the professionals at 123LumpSum to learn more about the process and to discuss any concerns you have to ensure that your decision is the right one for your future.