There are many different ways to come into an annuity settlement. For example, often times lottery payments can be taken in a lump sum payment or lottery annuity style, which pays out the money over the course of 20+ years. Another way to come into an annuity is through a structured settlement deal resulting from something like personal injury compensation.

Regardless of how you may have obtained your annuity settlement, there are many options available to you once you actually have it. The first decision to make is whether you want to keep it in the slow, long-term trickle of monthly payments or sell the annuity payments for an immediate lump sum of money to do with as you see fit. While there is of course no “right” answer to this question, it ultimately depends on your individual circumstance and financial standing.

Here are three things you can use your money towards to benefit you immediately if you do decide to sell your annuity payments.

1. Student Loans: Student loans are something that a lot of recent graduates are struggling to deal with. The dream of a college education was sold to the Millennial Generation like a long bill of goods and while it is certainly valuable in some aspects, it’s not living up to expectations for many. By paying down your student loans quickly you can save yourself a lot of money in interest in the long run.
2. Down Payment On House: Home ownership is still a dream of many Americans, despite the recent catastrophe that was the housing market in ’08. Owning a home is still one of the most tangible, concrete investments you can make, but it’s going to cost you quite a bit upfront. The money you get from selling an annuity settlement can be used toward this down payment. Remember, the more you put down today, the less you’ll end up paying back in interest down the road.
3. Emergency Needs: Life is full of surprises, both good and bad. You never know what kind of situation you might find yourself in – medical, automotive, etc – that you might need a significant amount of cash to deal with.

While having guaranteed passive income is a great thing to have, there are also many situation where having cash money today will benefit you even more. These are just ac couple examples of such.