There are a lot of situations in which you can receive a structured settlement that offers payments each month or year for many years, such as if you sue a company and win. Although some people like the stability of knowing that they will get regular payments, many others wish that they could just have a lump sum of money at one time. Luckily, this is completely possible; some banks and individuals will give you cash for an annuity. Although you won't get the entire amount, you might find it to be worth it so that you can have a lump sum payment right now. Here are a few signs that it's a good idea to cash out your structured settlement.
You Want to Buy a House
Many people get cash for their annuities so that they can purchase houses. This can be a smart financial decision; basically, the amount that you lose by cashing out your settlement can be gained back because you won't have to pay interest on your home. Plus, few things can give you a feeling of stability like knowing that you own your own home and don't have to make any payments on it.
You Have Kids to Put Through College
Your children's futures are important, and going to college can be a big part of building these futures. Even if you are hesitant about the idea of cashing out your annuity, you might find it to be worthwhile if you need cash now so that you can pay their tuition and other living expenses while they are at school.
You Want to Make Your Own Investments
Another smart decision can be to cash out your annuity and use your money to make your own investments. For example, you can invest in the stock market as a way of bringing in more money, or you might choose to invest in a more hands-on way, such as by investing in a restaurant or other business. This can be a great reason to cash out your annuity because you will be building a future for yourself that can be far more lucrative than your structured settlement payments.
You're Struggling to Make Ends Meet
There is really no reason to struggle to pay your bills when you have a structured settlement. If you need cash to get caught up on bills or to cover daily expenses, cashing out your annuity can be a great way to lighten your load.
Cashing out a structured settlement isn't a decision that you should take lightly, but it could be the right option for you. If you are in any of these situations, it could be the smartest financial decision for you and your family.Share