Maybe you’ve found yourself in possession of an annuity because of a lawsuit settlement agreement, or maybe you won the lottery and chose to have the lottery winnings paid out to you in regular installments — or maybe you thought, five years ago, that purchasing an annuity was going to be your only type of financial stability for retirement.
Regardless of why you have an annuity right now, if you’re like thousands of other Americans, you really wish you had chosen a lump sum payout or that you didn’t purchase an annuity at all — and you’re probably wondering if selling your annuity is the right choice for you and your family.
If you’ve been on the fence with selling your annuity, here are the top five reasons why so many people have already traded cash for annuity payments:
- To pay off debts. Today, Americans have a total $11.91 trillion in debt and the average consumer has about $3,761 in revolving credit on average. In fact, the average American household pays more than $900 per year just for interest. Paying off your debts can be the best way to start fresh.
- To go back to school. College tuition is expensive these days, but if you’re interested in advancing your career or switching careers, it’s almost necessary to have at least a four-year degree.
- To invest in stocks or real estate. Here’s the thing with annuities: when you purchase one and you “invest” your money, that money just sits in a locked account. It doesn’t accrue interest, and it will actually decrease because you have to pay annual fees to the company that sold it to you. A real investment, like stocks or real estate properties, will have a real return on investment.
- To start a business. The average cost to start up a business today is $30,000 — but the return on this investment will be great, not to mention that you’ll finally get a chance to do something you love!
So now we’d like to hear from you — what would you do with your money if you were able to sell annuity payments, lottery payments, or structured settlement payments?