Sell Annuity Payments
After receiving a structured settlement that grants recurring annuities, many people consider rushing right out and selling their payment plan for a lump sum. And it's not unnatural for you to want your money now; after all, we live in a society that is geared towards instant gratification. But there is a reason you were awarded this type of settlement, or more likely, several reasons. No judge makes such a decision lightly, and it is often done in the hopes that the judgment will be in the best interest of the recipient in the long term. Still, you might feel that the ruling was unjustified in some way, or you may simply have need of a larger portion of your payment plan now. For many people, the lifestyle they were accustomed to before the incident responsible for a structured settlement may be in jeopardy without a lump sum to account for immediate concerns like paying off a house, just for example. So there are a few things you'll want to take into careful consideration before you decide to move ahead with selling your annuity payments for a bulk sum in the here and now.
The first thing you need to consider is what your structured settlement is actually providing. In addition to your regular annuity, there could be other benefits attached to your plan, such as balloon payments on set dates, tax advantages that ensure you are able to keep more of the money you receive each year, or other special concessions of some sort. But even with these bonuses included, your settlement might not jibe with your immediate needs, especially if the payment schedule from your structured settlement doesn't match up with your current or upcoming financial obligations. It is important to keep in mind that you stand to lose more than just an annual payment, though, if you want to ensure that you are compensated accordingly when you sell a structured annuity plan.
In addition, you need to think long and hard about your reasons for trading in your structured payments for a large sum of cash now. If your plans include purchasing a home and you'd like to make the investment now, while the housing market favors homebuyers and stands to show a significantly higher return in the long-term, that might be a reasonable motive for giving up annuities. Making a solid investment now that is likely to exceed the value of your settlement long-term is a perfectly acceptable reason for selling, and you'll enjoy the many benefits of owning a home in the meantime, as well.
Provided you consider the expenses that your settlement was meant to cover and you have a plan to ensure that these needs are met despite trading your annuity payments for cash, there's no real reason not to at least look into selling. Just remember that this is a legal transaction. As such it may be subject to judicial review, so having a valid reason for selling your settlement could determine whether or not you are successful in your endeavor.
Also, you don't have to sell your stuctured settlement in its entirety. You may sell only a part of your settlement so that you can meet your financial needs now and continue to receive some of your annuity payments over time, in essence enjoying the best of both worlds. And of course, you should take the time to research the companies you're thinking of selling to in order to find one that is reputable and that can offer you the best terms. Depending on your annuity plan, you could be entering into a long-term agreement and you want to make sure you're 100% comfortable with your business partner in such a transaction