Regardless of why you first decided to invest in an annuity, there are plenty of reasons why you might want to get out of it — and unfortunately, it’s the nature of annuity settlements that makes it difficult for anyone to decide that they’d rather be able to control their money when they want to. For this reason, many people choose to sell annuity payments to a service that will buy an annuity or structured settlement and provide cash to the previous owner. It’s an easy way to circumvent the rules of annuity payments that try to force people into leaving their money locked away, even when they need it.
So what exactly can you do with the money you’ll receive after selling your annuity? The options are pretty much endless. One thing is clear, though — there are plenty of reasons why it’s justified to want your money back:
- To repay loans. The average American household has a lot of money in debt, including everything from student loans to mortgage payments. It’s a great feeling to finally get out of debt, especially when you’re able to pull from a sum of cash that was yours all along.
- To start up a new business. Small businesses can be pretty big investments, making it difficult for average working people to afford the costs of setting up a new business — even though it will be very lucrative down the line. Many people realize that their priorities have changed, and they have a better chance at securing their future financial stability by starting a new adventure with a new business, instead of letting their money sit around in an account without being used.
- To pay off medical emergencies. This option may not sound like the greatest way to spend your money after selling an annuity settlement, but let’s be honest — medical emergencies are a fact of life, and it’s impossible to predict when you’ll need the money. Sometimes you just can’t predict how your finances are going to look in a few years, and there’s no reason to feel ashamed about it.