Cash For Annuity, The Answer You’ve Been Looking For?
Tuesday, October 31, 2006
You’re the recipient of a structured settlement annuity but
desire cash for annuity instead of your regular annuity
payments.
But is cash for annuity really to your advantage? Sometimes yes
and sometimes no, it all depends on your individual situation.
It’s true there are advantages and disadvantages for both the
annuity seller and the annuity buyer.
The seller may require expensive medical care that is ongoing. In
such a case, a structured settlement annuity would ensure that
there is money to cover medical expenses over the long haul.
Cash for annuity on the other hand, could vanish quickly leaving
you with nothing or next to nothing to cover your medical
expenses. Or, if you were to invest your cash for annuity wisely
could produce an even greater windfall.
From the perspective of an annuity buyer a minimal investment
upfront would produce a substantial long term yield.
On the outside a cash for annuity payment may appear to be a
win-win situation for both parties. And in some cases it is.
However, as an annuity seller you need to understand that once
you receive cash for annuity you no longer have any right to your
original settlement amount. It is no longer yours to claim and
all you receive is the lump sum amount you agreed upon with your
buyer.
Because of this, it’s crucial you do your homework prior to
seeking cash for annuity. Seek the advice of a qualified
professional who will give you an unbiased opinion.
If your structured settlement is new, now may not be the right
time to seek cash for annuity. Your odds for receiving a healthy
windfall are slim to none. No buyer worth his or her salt would
agree to wait upwards of 20 years to see their investment pay
off.
Do yourself and your family a favor and seriously look at your
reasons for wanting to seek cash for annuity. Do you have an
immediate financial need or are you just impatient and have
dollar signs dancing in your head?
Huge cash for annuity mistakes can be made on impulse when you
see large dollar signs and/or financial stress is getting the
best of you.
If however you feel you could yield greater profits by having
cash for annuity upfront then selling may be in your best
interest.
Last but not least, give some thought to the amount of money you
will be forfeiting when you accept cash for annuity.
When you’re looking for cash for annuity you need to decide on
your bottom line. What price will you accept?
Seek the guidance of a professional and once you have answers to
all your cash for annuity questions and if you feel it’s in your
best interest to sell your annuity then go for it. In some cases,
the cash for annuity arrangement may be worth a lot more to you
any future payments you’ll be giving up.
posted by Dennis Cheesman @ 9:28 AM,
