Sell structured settlement payments

Annuity settlements can be acquired through structured settlements, insurance claims, or even lottery payments. They provide you with an annual check for a designated sum of money, sometimes that amount rises with time. For example, the Mega Millions annuity is paid out in one immediate payment with 29 subsequent payments that increase by 5% each year.

Many people enjoy the conservative nature of them, but selling an annuity settlement can be your best asset in maximizing your potential revenue streams. Unless you have a trust fund, or are confident you’ll be financially sound for the rest of your life, here are three reasons to sell annuity payments now to benefit you in the long run.

    1.) Inflation: Many people forget about this phantom tax that attacks those who save conservatively the harshest. Inflation is for all intents and purposes a fact of life today. Every year the money you save is essentially devalued. With annuity payments generally you have a set value for your payouts. In reality this means that the “set” value actually decreases every year. If you receive $1,000 a year in annuity and inflation is at 3% (typical for today), next year you’re really only receiving $970 in comparison to the original agreed upon price. And so on and so forth as it only gets worse the more you draw it out. Take control of your money and invest it yourself. Cashing out an annuity doesn’t mean you have to blow it all within five years like 70% of all lottery winners. There are infinite ways to diversity a portfolio to ensure you still have long term security, while increases your overall profit margins.

    2.) Fees: Some annuity settlements will charge fees. They can be up to 3% of what you’re receiving. Couple that with the inflation rate and suddenly all that ‘safe’ money you’re sitting on is dissipating faster than you get it. Some annuities even charge penalties up to 7% in the first seven years. It might seem like free money, but it’s your money. However you came about the annuity makes no difference. It’s your money and you should take advantage of its full potential.

    3.) Debt: Being in debt can be one of the most crippling factors financially. Once in debt your interest rates go up for loans and credit cards which means spending more for the same product or service. Many times people accumulate more and more debt as they try to get out from under what they already have. It’s a vicious cycle. Take the lump sum from cashing out your annuity and pay off some/all of your debt straight up. It will help you in the long run.

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