Reasons You Should Sell Your Annuity

If you are currently receiving payments from your annuity, you might find it difficult to understand how selling your annuity would be to your advantage and why would you need or want to sell your annuity. Receiving checks in the mail once a month or on a regular basis can be great, but a single large check could be better. Here are some reasons to sell your annuity.

One of the benefits of selling your annuity is you will receive your money today rather than later on in the future. The idea of a structure settlement growing for decades until the time you start receiving checks in the mail on a monthly basis was and is a very good idea. Unfortunately, the real world we live in does not follow along with the logic. In the real world your money is making money for other people, which should be your money. Also in the real world you money is worth more today than it will be in the future. If you consider the cost of living and the speed it is rising, your money will buy more today than it will in just 5 years.

Another good reason to sell you annuity is to enable you to deal with a financial crisis when it hits you. This can be something like a medical problem, a major mechanical problem with your only means of transportation. Whatever the reason, selling your annuity will put that money in your pocket when you have to have it. With an annuity you have no control over your money. It goes into someone else’s hands. Some people find it preferable to have access to their money whenever they need it.

Depending on how your annuity is set up, your money could be earning interest for someone else. Your annuity could be set up to earn interest, but you can sell your annuity and invest it in a more profitable investment, which will give you a higher return, which you will earn.

Our situations in life are not guaranteed to always stay the same. Having a certain amount of flexibility is necessary, and you need flexibility when it comes to your money, too. If you have money tied up to where it is not easily obtainable, you will consider selling that annuity at some point in your life. The annuity is great for retirement planning, but unfortunately we cannot always plan out life. If we could, there would be no unexpected surprises or crises.

Whatever your circumstances are it could be worth looking into your options of selling your annuity or leaving it as it is. If you can make an investment, which will give you a higher return than your annuity, you will want to look into selling it. Because your money really is worth more today than it will be in the future.