Should You Sell Your Annuity? 3 Common Scenarios

sell your annuityBeing the recipient of an annuity or structured settlement payment is great in a lot of ways. You have the security of an additional stream of income, no matter how large or small your checks may be or how frequently they may arrive.

Yet it can also be frustrating. Sometimes it would be convenient to get cash for settlements or lottery winnings up front instead of having to wait until the next check arrives. As we all know, unexpected financial challenges can arise, and having access to that money would ease your stress.

Well, you’re in luck. There is a way you can sell your annuity, either partially or in full, and receive a larger sum of payment straightaway. Consider selling your annuity to a trusted financial institution in order to get the most out of your earnings.

  • You Need to Get Yourself Out of Debt.
    Debt is unfortunately all too common n this economic climate. Some one in five young Americans, age 18 to 24, describe themselves as being in “debt hardship,” which can cripple financial opportunities for a bright and secure future. If you sell your annuity for enough money to pay off student loans or credit card debt, you can buy yourself a pathway forward.
  • You’re Ready to Make a Lifetime Investment.
    Buying a house? The average cost in 2010 for a new home was $272,900, and mortgaging companies can require a down payment of up to 20% of the sales price. The more you put down now, the less you’ll be paying in interest and mortgage rates down the line. You could really save yourself a lot of money in the long run by selling a structured settlement for a hefty down payment.
  • You Have Ongoing Medical Bills.
    Unexpected healthcare needs — and even the expected ones — can be incredibly expensive without proper insurance. Especially if your medical needs are a result of an accident or injury that earned you your annuity payment in the first place, don’t hesitate to ask about selling that annuity in exchange for up-front funds. This way you can avoid mounting debt.

Don’t limit yourself to receiving small incremental checks when you could be receiving a lot more. Talk today with a specialist about how to sell your annuity and access the money that’s rightfully yours.

How to Sell an Annuity in 3 Easy Steps

sell an annuity

You may be surprised at just how easy it is to sell your annuity or structured settlement payment plan in order to get settlement money now.

When you sell an annuity, you essentially give up your small increments of payment installations in order to receive all of your lottery winnings or structured settlement agreement money at once, in what’s called a lump sum. There are many reasons why people choose to sell an annuity: to pay off credit card debt (the average consumer has 3.5 credit cards), to put a down payment on a house (the average cost in 2010 was $272,900 for a new home), or to simply help make ends meet (some 40% of American families spend more than they earn). After all, it’s your money, and you are entitled to receive it whenever you want.

The process of selling an annuity involves some serious consideration on your part, but in the end there are just three simple steps standing between you and your lump sum payment.

  1. Contact a financial institution that specializes in annuity sales.
    First, you’ll need to get in touch with a credible financial institution that understands how annuity sales work. Know that there can be differences in rates between sellers, so be sure to shop around and ask for a quote on how much you can actually expect to receive as a lump sum by the end of the process.
  2. Arrange a court date.
    Once you’ve decided on a seller, you’ll have to schedule an appearance in court. This ensures that your decision to sell an annuity has valid reasoning and will not unduly jeopardize the financial future of you or your family. The judge will then sign off on your sale.
  3. Walk away with your money.
    Once you’ve submitted all of the proper paperwork, you should have access to your money within just a few days. Then, the rest is up to you!

While payment installment plans can provide a nice slice of income, sometimes we all need a little extra help up front. Bear in mind that you can also sell only a portion of your annuity — you don’t necessarily need to sell it all at once. That way, you can have the best of both worlds with immediate funds and long-term security.

Sell Your Annuity and Pay Off Debt Now

selling your annuityGetting out of debt can feel like an uphill battle. If financial challenges are bringing you down, you are not alone. Nearly one in five Americans considers herself as being in “debt hardship” at any given time, and a quarter of adults say that they struggle to pay their monthly bills on time. In fact, American consumers owe a total of $11.91 trillion in debt, and the average adult in the U.S. owes around $3,761 in revolving credit.

You might be one of the many Americans hoping to sell annuity payments in order to redistribute your money. By selling your annuity, you can gain access to a lump sum of cash, thereby reducing your debt so you can begin to build up better credit immediately.

An annuity is a beautiful thing. For the most part, receiving a steady income is highly advantageous. It is good to know that you can rely on future payments. However, life can change in an instant and you may need access to your money at a moment’s notice. You can’t always wait. Luckily, there are institutions through which you can collect your money as one lump sum. These businesses will buy your annuity payments in their entirety or just a portion of them. Some individuals choose to sell just a piece of their annuity in order to obtain a small lump sum while still ensuring financial security with the promise of future payments.

Before selling your annuity payments, make sure you understand the process thoroughly. You will not occur any court fees from selling annuity, but there will be other fees such as legal fees, program fees, and any other fees imposed by your insurance company. For more information, discuss your options with a specialty finance company.

Finance companies that provide annuity-buying services function to assist you in making positive life changes. Professionals are equipped with the legal expertise and institutional financing skills necessary to help you make your financial dreams come to fruition.

Don’t wait around for your annuity payments to finally add up over time. Get your lump sum of cash now in order to reduce debt and establish financial stability.

Annuities 101: What They Are For and How to Use Them

purpose of an annuity

New to your annuity? Here’s what you should know!

What Is An Annuity?
An annuity is a promise made by one party to make a series of payments to another party for a given period. Basically, it’s a contract between you and an insurance company. First, you buy an annuity, sometimes in a lump sum, and sometimes by making payments over time. That insurance company then invests your money. Some annuities, called “immediate annuities,” start making payments to you immediately, while another are available after a delay, which will grow your investment. This is called a deferred annuity, and it’s particularly popular. At the end of 2013, there were also 34.8 million individual deferred annuity contracts in place exceeding $2.58 trillion.

What Is Their Purposes?
The purpose of an annuity, which was created by life insurance companies originally, is to help pay for things like disability and long-term care — essentially, its purpose is to generate income for you. Payments can last for a couple of years, or even for your whole life. This supplemental income could seriously help you meet monthly expenses, and reduce debt over time. Consider this: the average U.S household pays $950 in interest every year. Annuities are available in many different varied lengths and payout periods; two of the most common are payments over the course of 25 years or payments until death.

On the other hand, deferred annuities also have their perks. Before your income payments begin, you can take withdrawals from the contract.

How Can I Use Annuities for Retirement Planning?
Annuities are actually very commonly used for just this purpose! They have the handy power to convert a lump sum into structured settlements for the rest of your life, or to invest over time, and later convert the money into income payments. Growth in your annuity value is also normally not taxed until you take money out of your contract. The purpose of an annuity is to help invest your money for later when you might not be as financially stable as you are now! Letting your money grow up could be the best decision you ever made.

Why Might You Want to Sell a Portion of Your Annuity Payments?

sell a portion of your annuity

By the end of 2013, there were nearly 34.8 million individual deferred annuity contracts in place, exceeding a worth of $2.5 trillion. For some people, the structured way that these annuities are meted out helps them budget and plan for the future. Overall, American consumers owe $11.9 trillion in debt, so periodic supplementary payments for some is a welcome and much-needed addition to their income.

But things change, and for many, having all of their annuity money at once would be much more helpful in the long term. Check out these reasons why you might want to consider selling a portion of your annuity payments to assess your own situation:

  • Annuity payments can last for 10 years, or even be structured to mete out payments for your whole life. At first, it might seem like a good idea to receive these monthly payments. But unforeseen circumstances can arise. What if you are unexpectedly slammed with medical bills, student loans, or credit card debt? In these cases, it would be much more helpful to have cash now, and not future payments.
  • Changes in your long term investment or estate planning could make it so that small payments don’t make much sense. Perhaps you want to invest in real estate — the average cost of a new home was $272,900 in 2010, and using a lump sum for a down payment could get you started on home-owning. Sell a portion of your annuity payments and redistribute your money according to your new strategy, which should work best for you now.
  • If you have inherited annuity payments, but you’d rather have a lump sum, this is a prime time to consider selling your structured settlements. What was right for the person from whom you inherited from might not be right for you.

Cash for an annuity can be life changing, and one of the many ways to reduce debt. It is important that your settlement, inheritance, or lottery winnings are allowed to you in the right way that makes sense for your financial goals. Sell a portion of your annuity payments to make your financial goals come true.

Easy Ways to Save Money and Get Out of Debt

 selling your annuity paymentsAmerican consumers are in debt — $11.91 trillion deep, in fact. The truth is that in our society — where material belongings are valued over experiences and lines of credit are as easy to get as candy on Halloween — falling into a debt hole seems almost unavoidable at times. Indeed, nearly one in five Americans aged 18-24 qualify themselves as being in “debt hardship.”Selling your annuity payments may seem tempting at times like these.

There are several ways one can try getting out of debt. Selling your annuity payments or getting cash for a structured settlement is one way. Bankruptcy is another — in February 2015, there was a daily average of 3,422 bankruptcy filings. But declaring bankruptcy or selling your annuity payments doesn’t need to be the only way.

Check out these easy ways to reduce debt, and get started on your new life:

  • Make a date with your money: This means blocking out one time every week when you sit down to update your budget, review your accounts, and track your progress against your goals. In order to see things improve financially, you need to have some alone time with your personal accounting, which will, in turn, hold you accountable.
  • Cut out cable: Seriously, it might seem unimaginable to you, but the cable bill really adds up. Instead, buy a subscription to Netflix, Hulu or Amazon Prime. With their many options, it’ll be hard to imagine you ever needed cable.
  • Make coffee at home: Even though a cup of organic, fair-trade, gourmet, locally roasted and brewed cuppa joe is one of the joys of this world, those $5 lattes are taking a sizable chunk out of your wallet. Even investing in some high-end beans will present significant savings over going out all the time.
  • Get creative with gifts. Time to get crafty! Or, if you’re not the DIY type, spending time, instead of money, can really be the best way to tell someone you love them. Plan out a special scavenger hunt, cook up a special meal, or take that person on a beautiful outdoor adventure. They probably wouldn’t even have used your expensive gift anyway!
  • Plan out your meals: By planning a week in advance, and cooking with everything you bought, you will save untold amounts of money and food since nothing will go to waste.

Most importantly — track your progress. It’s time to stop keeping up with the Kardashians, and start congratulating yourself on the progress you’ve made personally.

The Facts: Annuity Payments and American Debt

cash for an annuityWinning the lottery or winning a settlement in a lawsuit is certainly sensational. After all, who wouldn’t want to be awarded funds, almost as if they came out of the sky? But the truth is that it isn’t nearly as glamorous as it sounds. Most often, the winners of the funds or settlement are offered annuity payments over periods of time. This can be unwelcome news to people who imagined hefty lump sums that could lead to early retirement, the paying off of debt or medical bills, or the purchase of luxury items.

Indeed, debt in America alone is a huge problem, and it would be hugely helpful for many people to have money to get themselves out of it. Over 40% of American families spend more than they earn, and in February 2015, there was a daily average of 3,422 bankruptcy filings. The fact is that a lot of times, this debt has nothing to do with people not working hard, but more to do with extenuating circumstances like medical bills. Nearly 20% of credit reports are hurt by overdue medical bills, and once your credit report is low, it’s harder to take out necessary loans to start a business or go back to school.

Receiving a settlement of some sort is not uncommon — by the end of 2013, there were 34.8 million individual deferred annuity contracts in place, exceeding the amount of $2.58 trillion. For some, getting installed payments is a good way of regulating and budgeting their extra income, but for others, choosing to get cash for an annuity was a ticket out of debt and towards hope.

In order to get ahead, certain investments must be made. But the unfortunate truth is that sometimes these investments can backfire and cause personal progress to halt. For instance, getting higher levels of education can lead to a higher income. However, according to the College Board, the average cost of tuition and fees for the 2014-2015 school year was $31,231 at private colleges.

The fact is that the way you decide to receive your lottery payouts is really up to you, and depends on your unique financial situations. Choosing to sell your structured settlement and get cash for an annuity might be the right ways to reduce your debt.

How To Manage Your Finances: Tips For Everyday Life

manage your finances

Overcoming financial challenges can be very difficult. Often, debt leads to more debt and it can seem impossible to meet your monthly expenses and save for the future. While a lottery lump sum payment would be welcome, you can get out of debt yourself by learning to manage your finances. Follow these tried and true principles to use your own earning power and self-discipline to transform your financial situation:

Create A Budget
A budget is key to effective financial management. Without a budget, it’s easy to forget about necessary expenses and saving. However, with the myriad of expenses and debts that the modern adult accumulates, this can mean that you’ll have no money left over to spare, or owe money at the end of the month.

A budget can help. First, calculate the money you earn in a month. Then divide it into categories: fixed costs should be the majority of your budget, then savings and guilt free spending money should comprise the rest. Adjust and add more categories for your personal situation — maybe 5% a month goes to your student loans, or 10% to investments.

Learn To Use Credit Cards — Without Going Into Debt
Credit cards are extremely useful tools, especially for people who don’t get paid every week, but in many ways they are a recipe for disaster. The average household carries $15,355 in credit card debt, which can seriously hurt your credit score and ability to save and earn if unattended to. The average home has 13 cards and the average consumer has 3.5 credit cards — often using one to pay off the other.

Before you get a credit card, educate yourself about their policies and late fees. Don’t think of a credit card as cash. If there’s an $1,000 limit on your card, remember that you’ll have to pay back that money. Stick to your budget and try to think of your credit card only as a way to build yourself better credit, and therefore more financial accountability.

Save
For those rainy days where all else fails, for big investments and expenses like school tuition for you or your kids, for big ticket items that you don’t want take out loans for — these are just some the reasons, besides retirement, why saving is important. Saving consistently also helps with the maintenance of your budget. Knowing exactly where some of your monthly money is going will help make sure the rest of it is going where you allotted it originally.

Learning ways to reduce debt, and manage your finances in many ways requires a serious change in lifestyle. Remind yourself of the freedom offered by financial independence, and embrace the mindset while you embrace your budget.

5 Ways To Reduce Personal Debt

ways to reduce debt

Consider this: the average American household is paying a total of $6, 658 in interest every year. Between the cost of owning a home, driving a car, student loan debt, and more, it’s easy to get in over your head. Worst of all, things can go even further south quickly. About 20% of credit reports are hurt by overdue medical bills.

If you or your family woke up one day in debt, and want to get out, don’t lose hope. You can consult a debt specialist, an expert who knows how to reduce debt. But if you are looking to start small, here are a few small changes in your life to slowly lift yourself out of debt.

1.Reduce spending
This seems like a no-brainer, but you’d be surprised at the amount of people who don’t change their lifestyles despite being in massive debt. By spending a little less and paying off a little more each month, your debt will decrease steadily every year. Every little bit adds up. Some ideas include: canceling magazine subscriptions, packing lunches from home, buying in bulk, skipping expensive outings like movies or shows, and programming the thermostat for timed heating or cooling when you’re not home. Make sure you use the money you save to pay off biggest loans with the highest interest rates.

2.Clean out your house
Having a massive garage sale will leave you a little more flush, and feeling better about the state of your home. Reevaluate what you really need and why you’re holding onto certain items. Ask yourself if you would you rather own a particular item or be in debt, and then act accordingly. Using this bit of extra income for daily expenses can help save money and ultimately reduce debt.

3. Refinance
Look into lower interest rates on your mortgage or car loan by refinancing. Bad interest rates can increase the burden of a loan, and can force people to pay several times more than the premium over the loan’s lifetime. Believe it or not, the average household pays $950 in interest every year! Remain on the lookout for opportunities to reduce your interest rate — boost moral by doing some before and after calculations to see how much you ended up saving.

4. Shop around for insurance
Whether it’s auto, home, or life insurance, you may miss out on special deals and lower prices if you switch to a different provider. Most people don’t think twice about insurance once they have it, and even though it’s necessary, it could be one of many ways to reduce debt for you and your family.

5. Invest your money
Overcoming financial challenges takes time, and while it seems counter intuitive to spend money when you have looming loans, investing in your future is likely to pay off big time later on. Consider getting trained for a certain field, going back to school, or investing your money in a business or fund.

There are countless other ways to reduce debt, but taking small steps is a surefire way to improve both your lifestyle and pay back loans without making huge changes.

Selling Your Annuity To Cover Home Payments

Purchasing a home is something that often symbolizes becoming a successful adult; it means you have a stable job, you have a financial plan for the future, and you might even have a family. Whether you’re 25 or 55, buying a house means that you’re comfortable in your environment and you’re confident that you’ll settle in.

But consider this: As of October 2015, the average cost of a new home was $366,000. Even a house for a small family can be very expensive, and it’s not always easy to predict how much money you’ll have to pay in a down payment.

Although taking out a mortgage is always an option — and it’s something that most homeowners do — you could end up paying 5%, 10%, or 20% of the total sale price in a down payment for a mortgage. This 15% difference can mean the difference between purchasing a new home now or waiting until you’ve saved up more money. And even with a mortgage, you’ll be carrying that debt over your head for a long time. The average household in the U.S. today owes about $165,892 on mortgage payments.

One solution which many homeowners have found is to sell their structured settlement payments. The average structured settlement payout is $324,000 — just slightly under what the average new home costs today. Although a monthly payment of $500 may be enough to cover basic items and medical expenses, it’s not even close to what you’d need for a down payment on a new home. Cashing out your structured settlement too early can result in penalty fees as high as 10%, and that’s a lot of money paid to the insurer for absolutely no reason.

Selling your structured settlement payments can be a great way to avoid paying those fees while still being able to invest your money in any way you see fit. Maybe you’re already looking to buy a new house; maybe you have another investment in mind! However you spend your money, you can be confident that you’ve made a good decision.

selling your annuity