Making an investment

Did you know that, by the end of 2013, nearly 35 million people were receiving money from deferred annuity contracts — with annuities collectively being worth about $2.6 trillion? That?s a lot of money — and a lot of money to wait for.

If you?ve ever won the lottery or, more commonly, received money for a settlement, you may be familiar with annuities. Annuities are fixed amounts of money that these individuals receive over time. For a medical malpractice case, for example, an individual might receive a set amount every year that is intended to cover the cost of their ongoing medical care.

Not surprisingly, though, this setup doesn?t work for everyone. If it doesn?t fit your situation, then you may want to sell fixed annuity. What are the advantages of doing this? Let?s walk through the process.

What Happens When You Get Cash for Structured Settlement Payments?

Not surprisingly, if you decide to receive your cash early there is a fee. These companies will retain a portion of your settlement amount; in exchange, you get to use all your money now, instead of years down the line. In most cases, the percentage of your winnings that the company receives will not exceed 10%.

So is it Worth it to Lose Some of My Money?

In many cases, the answer is yes. Why sell fixed annuity? Well, consider all the fees you?d have to deal with otherwise — along with the stress! Nearly 20% of credit reports are negatively affected by overdue medical bills. If you pay off your bills now, not only do you eliminate the interest rates you?d have to continue paying off, but you can also improve your credit score — allowing you to do things like purchase a home or owning a car. Paying off your debt now can be a great experience — and a financially wise one.

Investing in the Stock Market

Investing your money makes sense — your money can earn about 8% annually if you invest in the stock market, and over the years, this can really add up. When your money is locked away in an annuity, it?s not making you any additional money — if anything, it?s losing value over time thanks to the effects of inflation. By selling your annuity now and putting that money into stocks, you can more than make back the money you?re losing by withdrawing it early — while still having total control over what you do with it.

Would you sell fixed annuity payments? Let us know.