If you’ve won a structured settlement annuity, won a large lottery annuity, or fell into an insurance claim one of the things you should consider is getting cash for annuity payments. Keep in mind variable annuities can charge maintenance fees of $20 to $30 a year and most have penalties associated if you withdraw early. Typically this can be 7% of your investment or more. Don’t let the money you’re entitled to get nickle and dimed by legalities and technicalities. There are many reasons to think about selling an annuity settlement, here are three things you could do with the money if you choose to do so.
1.) Start a College Fund: Whether it be for yourself or your kids, it’s never to early to start planning for the exorbitant cost of higher education. Universities will try to persuade that with financial aid and subsidized loans anyone can make it through with relatively little financial burden. That’s just simply not the case. Unless you or someone you know is wealthy enough to foot the bill upfront, chances are you’re going to be paying off loans for a long time. Unless of course you have a fund set aside that will grow over the years. With the help of a financial adviser, or even your own business savvy mind it’s possible to flip a few thousand dollars in investments over a couple years. You just need the money, which cash for annuity payments can provide you.
2.) Move Out of Parents House: Perhaps you’re not thinking about kids yet and you’ve already dug yourself into significant debt. Now as you try to figure out what you’re going to do for the rest of your life you find yourself living in the same place you grew up: your parents house. It’s not a bad thing, in fact it’s a great way to save some money. But if you’ve got the itch to start making moves you can take some of the money from cashing in an annuity and put it towards a security deposit and rent for a place of your own. Sometimes it’s necessary to force change. Moving out can be the first step.
3.) Day Trading: You already have a degree and your own place? Congratulations, you’re off to a good start! But now you’re trying to build up your savings and living paycheck to paycheck just isn’t cutting it. This is a riskier endeavor, but it could pay off big. With a portion of the cash for annuity payments you can dip your toes into the world of day trading. High-risk, but high-rewards can await you. Just like experts recommend not putting more than 25-30% of your investments in an annuity, don’t use the whole check to play with here. Diversify your portfolio, but this can be a way to make some quick money if you end up being successful.