Why Would You Sell Your Annuity?
In many ways, an annuity seems to be an ideal long-term investment plan. It’s easily definable. There seems to be minimal hoops to jump through in order to set things up. It comes with the promise of having a structured payment schedule waiting to help you get through your retirement years.
However, it also comes with an intriguing little wrinkle. That is, it comes with the ability to be sold to a secondary buyer in order to receive cash much sooner than what the schedule dictates. And considering how many secondary buyers are out there on the market, it’s an option that seems to be rather popular. But why would someone seek out cash for annuity in the first place?
Life Happens
There are several reasons why a person would want to receive cash for annuity, and they essentially revolve around life events of various importance and circumstance. Some of these events include:
The purchase of a home – A home is traditionally one of the biggest investments that a person can make. It also happens to be one of the priciest ones. Receiving cash for annuity can help a person that needs to scrape together a solid down payment on a home the funds that are needed to take that crucial step.
The funds needed for other investments – There may be an opportunity for a person to invest in what they perceive to be a blue chip business or project – one that could be profitable down the road. Selling their annuity may afford them the money needed in order to fully or partially bankroll such a project.
The payment of unexpected medical bills – One of the scariest aspects of life is the possibility that a medical emergency may crop up out of the blue. If a person is not prepared for such a thing, the resultant medical bills may present a massive shock to their wallet. These bills can be managed or even fully paid off by receiving cash for annuity.
The payment of massive debt – Sometimes life’s tumbles cause people to have to live on loans and credits. These situations provide short-term relief, but could create long-term financial pain in the form of credit card debt or student loans. Selling off an annuity can go a long way in alleviating the pressures that build up from these situations.
Long Term vs. Short Term
While the option of cash for annuity gives people a tremendous amount of freedom with their finances, it also comes with a conundrum that must be faced. That is, if a person does sell their annuity in full, they will not have that money waiting for them later on. Because of this, it is essential that a person that is thinking about selling their annuity take a long, hard look at the potential long-term ramifications behind such a transaction. After all, pondering what a person’s financial future may be like is one of the most vital things someone can do, if only because their quality of life is at stake.
In many ways, an annuity seems to be an ideal long-term investment plan. It’s easily definable. There seems to be minimal hoops to jump through in order to set things up. It comes with the promise of having a structured payment schedule waiting to help you get through your retirement years.
However, it also comes with an intriguing little wrinkle. That is, it comes with the ability to be sold to a secondary buyer in order to receive cash much sooner than what the schedule dictates. And considering how many secondary buyers are out there on the market, it’s an option that seems to be rather popular. But why would someone seek out cash for annuity in the first place?
Life Happens
There are several reasons why a person would want to receive cash for annuity, and they essentially revolve around life events of various importance and circumstance. Some of these events include:
The purchase of a home – A home is traditionally one of the biggest investments that a person can make. It also happens to be one of the priciest ones. Receiving cash for annuity can help a person that needs to scrape together a solid down payment on a home the funds that are needed to take that crucial step.
The funds needed for other investments – There may be an opportunity for a person to invest in what they perceive to be a blue chip business or project – one that could be profitable down the road. Selling their annuity may afford them the money needed in order to fully or partially bankroll such a project.
The payment of unexpected medical bills – One of the scariest aspects of life is the possibility that a medical emergency may crop up out of the blue. If a person is not prepared for such a thing, the resultant medical bills may present a massive shock to their wallet. These bills can be managed or even fully paid off by receiving cash for annuity.
The payment of massive debt – Sometimes life’s tumbles cause people to have to live on loans and credits. These situations provide short-term relief, but could create long-term financial pain in the form of credit card debt or student loans. Selling off an annuity can go a long way in alleviating the pressures that build up from these situations.
Long Term vs. Short Term
While the option of cash for annuity gives people a tremendous amount of freedom with their finances, it also comes with a conundrum that must be faced. That is, if a person does sell their annuity in full, they will not have that money waiting for them later on. Because of this, it is essential that a person that is thinking about selling their annuity take a long, hard look at the potential long-term ramifications behind such a transaction. After all, pondering what a person’s financial future may be like is one of the most vital things someone can do, if only because their quality of life is at stake.
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