Hi folks, J.G. Wentworth here.
Millions of Americans rely on annuities. They count on their annuity to provide a steady flow of income, and to give them a financial cushion upon their retirement. For the majority of these people, annuities truly are wonderful things.
However, the reality is that the circumstances of anyone’s life can change. Waiting for money from an annuity to be paid out over time, ultimately might not be the best course of action for you. With that in mind, here are five reasons why it may be in your best interest to sell your annuity for cash now.
– You were planning to use your annuity payments for your retirement – but find yourself still working
Many annuity holders were planning to rely on their annuity payments following their retirement. But if you are still working, you may find that having a steady stream of monthly payments isn’t necessary, and that it may be in your best interests to sell the annuity for a lump sum of cash.
– You want to help out a loved one
Some annuity holders find that their loved ones need their financial help, often for reasons that are not their fault, including sudden medical expenses, rising educational costs, bankruptcy issues, and many other reasons. They choose to sell their annuity to help provide for their loved ones, rather than waiting for annuity payments over the long-term.
– You have complicated tax and inheritance issues, and do not want to burden your beneficiaries with them
Some annuity holders discover that the potential tax burden on their beneficiaries is larger than it would be if they were not receiving regular payments from the annuity. They then choose to sell their annuity payments for cash, and look for more financially sound ways to benefit their beneficiaries.
– You simply cannot afford to wait for money from your structured annuity payments to arrive
Many people looking to cash out their annuity do so for the simple reason that they need money quickly. They simply do not have the luxury of waiting for future annuity payments to arrive, and need that cash now.
– You have inherited an annuity from your parents and decide you can make better use of a lump sum of cash
Another large group of people looking to get cash out of their annuity are those who have inherited annuities from their parents. While a structured annuity might have been a financially sound approach for their parents, these beneficiaries find that cashing out their annuities for a lump sum is a better option.
Are you on this list? Or do you have a unique situation that for a very different reason is also causing you to consider cashing out your annuity for a lump sum payment? Whatever your reasons, we urge you to talk over your options with one of J.G. Wentworth’s annuity department representatives. Please give us a call anytime at 1-877-227-4713.