Cash For Annuity
If you have an annuity,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?
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.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Receive hard cash today from the primary nationwide buyer of structured settlement and annuity payments! Telephone 800-670-6777 right now to dicuss your structured settlement with a expert at Singer.