20 Aug The Top 3 Myths About Selling Your Annuity
If 92% of people who sell their annuity payments are satisfied with their decision, then why are so many people stillhesitant to look into selling their payments even if they desperately need the money? Simple: there are just too many myths swirling about that cause fear and anxiety.
So what are some of these myths that might be keeping you from selling your annuity payments? Let’s take a look at some of the more common misconceptions that people have about selling an annuity settlement, a fixed annuity, or even a lottery annuity:
- Myth 1: Only sketchy companies buy annuity and structured settlement payments; it’s hard to find a trustworthy business to work with
Okay, sure. Just like any other industry, there are plenty of sketchy businesses out there. But when you find a good service, you’ll know it. The entire process has to be approved in court and there’s plenty of paperwork to fill out, and all of this ensures that you’re selling your annuity payments safely and legally.
- Myth 2: You still won’t have full control over your money and you can’t invest it
This is definitely one of the drawbacks of annuities and it’s one of the top reasons why people want to sell their payments. Annuity payments are typically locked away for a certain period of time (or until the recipient reaches a certain age), and early withdrawal fees can be anywhere from 7% to 10%. When you sell your annuity payments, however, you get complete control over your money and you can spend it or invest it however you wish.
- Myth 3: You have to sell the full annuity if you choose to sell
Many people do end up selling their entire annuity or structured settlement, but there are other options that allow you to sell part of the annuity instead of the whole thing. Services that provide cash for annuity payments are often very willing to work with their clients to figure out a payment plan that will be best for them.
So now we’re wondering what you think about all of this — does it sound like selling your annuity payments is easy, or are there any misconceptions you’ve heard recently that are still holding you back? Leave your thoughts for us in the comments section below!