Settlement Structured Annuity
Do you have a settlement structured annuity? Are you thinking about selling your settlement structured annuity? Make sure and do your research before you sell your settlement structured annuity.
In most cases, selling or getting bought out of your settlement structured annuity is not a good idea. This should be taken as a last resort measure. The reason being the company purchasing your settlement structured annuity is not going to give you the full value of the settlement structured annuity. That is how they make money. You could lose as much as half of the value.
Second, how competent are you at managing your investments. If you sell the settlement structured annuity and cash out then you are responsible for managing the money that you receive. If you are good at money management then you probably would not need to sell the settlement structured annuity in the first place. A Settlement Structured Annuity gives you tax-free guaranteed payments. This may or may not be the case with the investments available to you after the sale of the Settlement Structured Annuity. You are now going to be responsible to make sure the investments generate income.
However, if you are competent at money management and can stand the risk of loss selling your Settlement Structured Annuity can be a good idea. The rate of return offered by most Settlement Structured Annuity products can be beaten. With this additional return comes additional risk. There is no free ride. For someone who is disabled, a minor or elderly the risk may not be worth the potential reward.