With the stock market continually teetering in the profit & loss columns, and banks offering extremely low interest rates, it becomes challenging to make ends meet with the additional funds you received through an annuity or a structured settlement. Now, with the ever-increasing rise of new retirees making their way toward their final paycheck, many are realizing their pensions are not always turning out to be what they expected.
In the end, it seems that only annuities and structured settlements have offered a solid avenue to retirement by eliminating any risk of running out of income before taking your last breath. However, there are many times when the payouts to annuitants (owners of annuities) are simply not enough to survive. When times like this arise, it is essential to consider looking for a purchaser for your annuity.
Receive a Lump Sum of Cash
If you are really hoping to receive more money every month for your annuity, and find that that is simply not happening, it may be best just to receive a lump sum of cash for it to invest the funds elsewhere. Perhaps you found an investment opportunity that offers greater returns, even at a taxable rate. Perhaps you realized that paying off your mortgage makes better sense than receiving small payments from your annuity or structured settlement every month. Whatever the reason, there are legal ways to convert your policy into cash, with the help of a professional.
Likely, the most common reason ever given for converting recurrent payments of an annuity or structured settlement into a lump sum of cash is that the vehicle no longer meets the financial needs of the individual who now is dealing with mounting bills. The types of expenses that need payoff are usually medical bills or a mortgage that is underwater. The situation often causes the individual to be trapped into a situation that only converting the asset into cash can help.
The Paperwork
While there was a time in the United States when converting annuities and structured settlements into cash did not take the route through the judicial system, now it must pass the smell test in the court system. The paperwork involved can be complex, requiring the needs and expertise of a company that does this regularly. It is essential to seek out companies that purchase annuities and structured settlements that have years of experience, and a long history of offering competitive bids for the value of the asset.
What to Do First
Contrary to thought, the first thing to do before converting your annuity or structured settlement into cash is to seek out traditional options for borrowing money such as credit cards or even a bank loan. However, at times when those options are not available, for whatever reason and you are receiving monthly, quarterly or annual payments from a structured settlement or annuity, you can easily convert the future payments into a lump sum. If all other methods and options are unavailable, seek out the advice of competent, experienced company filled with professionals to assist you.
There are few online businesses that handle structured settlements annuity purchases every day. They offer competitive quotes based on the actual value of the annuity or structured settlement payment plan based on current economic conditions, interest rates, the number of remaining payments and other factors.
The level of expectation you should have in converting your annuity or structured settlement payment plan into cash should be realistic. Its actual value is probably significantly lower than you imagine. Remember that these companies are in business to make money, and are using your seasoned structured settlement or annuity as a way to generate profits.