When most people find themselves in some sort of financial bind they look for the quickest and easiest way out of it. It is human nature to do so. We all want to avoid any sort of pain and discomfort not only when it comes to our health but also our finances.
For those who have planned ahead in their life and made various investments with the help of a financial planner of some sort they may have an annuity or two in their portfolio. If they find themselves in a tight financial situation they will often look to sell an annuity for a quick cash out in order to alleviate their current financial pain.
There are numerous companies and organizations that are more than happy to help you sell your annuity. For a fee. Sometimes a very large fee. Unscrupulous operators will often take advantage of those looking for some fast cash to take care of some emergency bills or what have you.
An important thing to remember is to take your time and research all of your options. Invest a couple of hours visiting with a trusted financial adviser going over different scenarios that you could use. It could save you a lot of money.
Here are merely a couple of ideas that a person can go about implementing by making use of annuity. These ideas are equally valid for those thinking about getting cash for a settlement of some sort.
- Keep in mind that most annuities and structured settlements that are paying out a set amount of monthly or yearly income over time are designed to provide the maximum rate of return with a minimum amount of risk, that is why there are so many organizations out there that are willing to give you cash for them. They have a lot of value. If they sense that you really need cash fast then you are going to get a low ball offer. No matter what your situation is you need to take the time to shop around and get more than one offer.
- Many people have found that getting a loan against the value of the annuity is the best route. You will probably find more than one friendly local banker that is more than willing to work with you. This is often the best option especially if you are still working and or have other cash flow. The interest rate that your annuity is paying may only be slightly less than the rate you will have to pay against the loan. It is amazing just how cheap the money you are borrowing can cost you if you go about it in this way.
- If you do not need all of the money that you can get from selling your annuity or structured settlement you can use the above scenario with your banker and use the majority of the money to purchase some income producing real estate or investing it in some other solid and secure financial instrument. This will further reduce the cost of the loan and in rare situations can even lead to a profit.
By thinking smart, taking your time, and talking to more than one professional in the business you will be able to make a better financial decision.
There are many unscrupulous operators around looking for an easy mark. Do not make a rash decision simply because you feel an immediate financial need. Your creditors will wait no matter how much they try to convince you that you need to take care of your bills now.
By shopping around and talking about all of your available options you may find a better way out of you current financial bind.