|
Is Selling Your Annuity Settlement
The Ultimate Solution?
Sometimes we are beset with monetary problems that we get desperate and sell our annuity settlements, thinking it would immediately and ultimately solve our liquidity problem. In our desperation, we grab the very first opportunity that lands on us and think it the best solution for our problems. Continue below.
Rich Dad Cashflow 101 The eGame and Board Game
Raises your kids' financial IQ and yours.
Successful Entrepreneurs :
Successful Filipino Business Entrepreneur
Filipino Business |
Famous Filipino |
Filipino Entrepreneur |
Entrepreneur Success Stories |
Filipino Entrepreneur Biography |
MLM Success Stories
Entrepreneur Lesson |
Entrepreneur Articles |
Young Business Entrepreneurs
However, it is at these times that we should be careful in making huge decisions because it is at these times we are most vulnerable to predator individuals or companies that take advantage of our immediate need. So before handing out your rights and start the process of selling your annuity settlement, ask yourself first if it is really the only and the ultimate solution.
If your liquidity problem is a bit very urgent and needs immediate solution, selling your annuity settlement would not be of much help so think again before selling it. Companies that buy these plans tend to lure you with attractive, but not so comprehensive packages as they do not lay all their cards on the table. At the end, it would only leave you baffled and perplexed without money.
What these companies are not telling you is that selling or transferring an annuity is a long process. There are legal obstacles on the way, which you both-seller and buyer-have to face and deal with first. You would need to file an application in a court as all transactions should be recognized as legitimate by the court. That is just the beginning. The procedures happen in a succession that you couldn't complete them simultaneously.
They are to be completed one after the other and the whole process may take you two months to finish. The companies do not tell you this until you are already caught in the middle of the process and there's no turning back anymore because it already cost you money or maybe turning back would cost you even more money. The companies do not tell you this, of course, because they would not want to lose your annuity.
They would do everything to get your annuity and at the least cost as possible. That is what they do-that is their business. So as an investor, you have to be careful and protect your investment against such predators.
So, if your monetary need is immediate in nature, selling your annuity settlement is not the best solution. Try to find some other solution if you don't want to add more to your problems and stress.
Now if your liquidity problem is not of urgent need, like if you are only anticipating for a huge expenditure in the future, you could time the selling of your annuity. In every buy and sell business, may it be shares of stocks, housing and other properties, or annuities, timing is everything. Watch the market performance and its trends closely. Don't sell your annuity if the market is not doing good or performing well.
It is at these times that your annuity would value less than your initial investment or your rate of return would be very minimal. And holding to it much longer would prove beneficial for times of unexpected disasters or illness and serve you more effectively. In this case again, finding other solution to afford you the anticipated huge expense is a better option than selling your annuity.
Always remember that keeping your annuity for the rest of its term is a guaranteed income in your late years, whereas selling it is only a short-term lump sum payment, which could be gone before you know it.
Browse Sell Annuities
Visit Money Management
|
