25 Aug Selling Your Annuity: Investing in Yourself
Whether it’s a structured settlement from a lawsuit, insurance policy, or lottery winnings, selling your annuity could be the perfect way to achieve your next goal. The consistent annual money you receive from such a source is great if you’re living on a set income of sorts, but if you’re still in peak earning potential age immediate cash for your settlement can be used for a variety of reasons. Remember, it’s not free money. Annual annuity fees are usually about 3%, and some charge you a penalty of 7% for the first seven years. You only have so long to take big chances in your life. Here are just three reasons to think about selling your annuity for the big picture:
1.) Starting a Business: If you’ve dreamed of being an entrepreneur the time to act is now. With the explosion of startups it’s never been easier to run with your idea and create your own vision. Because of this the cost to starting a business can be very low. Take the cash from selling your annuity and invest in yourself. If your work ethic can match your ambition you will pay yourself back in no time.
2.) College Tuition: Getting cash for structured settlements is a great way to tackle college tuition prices. Instead of taking out loans that will spiral you into debt for years to come, sell your structured settlement and invest in yourself. You will be rewarded with the unique knowledge and experience only higher education can provide. Also, you’ll receive a piece of paper many professionals value.
3.) Emergency Bills: This reason is not as positive as the last one, but potentially the most important. Tragedy strikes in many forms when we’re least expecting it. Whether it’s a medical emergency or car trouble, chances are you will someday find yourself facing a big bill you aren’t prepared to pay. Again, invest in yourself. Don’t allow a bank, or financial institution to control you with loans and interest rates. You will come back from the situation even stronger knowing you got yourself out without accumulating any debt.
Annuities can be great things for those that want a solid, consistent source of income. But for those looking to take some risks selling a settlement and putting it to use can be the experience of a lifetime. However, keep in mind 70% of all lottery winners lose all their money in under five years. The large lump sum of cash you will see when selling your annuity might make dollar signs dance across your eyeballs, but don’t lose focus. Invest in yourself.