3 Important Things to Monitor When Selling Fixed Annuities
Selling your own money is a difficult concept to grasp. You can’t think in terms of money for money, however; you have to think in terms of selling a little money that you would be acquiring annually over multiple decades, for a lot of money now. We’re talking, of course, about selling fixed annuities.
Annuities are small payments of cash that are paid out, usually over a 30-year period, to someone who has won a large settlement or a lottery contest. Rather than receiving these annual payments, selling your annuity enables you to get a large lump sum of cash for the present to address any financial issues you might have.
When selling fixed annuities, however, there are a few things you should keep an eye out for to avoid any future problems.
If you have any outstanding debt attached to your name, opting for a lump sum payment is a great choice. One-fifth of Americans between the ages of 18 to 24 claim that they are in debt hardship. If you have the financial opportunity to receive a large lump sum of money and pay off most, if not all, of your debt, you should go for it. Not having to worry about your debts year after year is great for anyone, especially a young adult.
Cost of Living
Make sure you’re aware of exactly what it takes for you to comfortably survive with or without your annuity payments. That money is yours no matter how you receive it, so it’s best not to just blow it right away on unimportant things. Be responsible with your lump sum if you opted to sell your annuity payments.
Again, you can’t just blow all your earnings on a few items. You have to seriously think about how you should handle your money after selling your annuity payments. Consult with financial experts to figure out the best plan for you. You should set yourself up for a secure financial future by making sure at least some of that money goes into an untouched savings account.
If you are still unsure about selling fixed annuities, contact iSettlements today to learn more.