An annuity will give you an additional source of income, acting as a sort of financial safety net to help support you, but did you know that you can sell annuity payments? While it may seem scary to get rid of your financial safety net, selling your annuity can be a prudent decision. Here are just a few reasons why selling an annuity settlement can be a good idea.
A New Home.
The median cost of a new home as of September 2015 is $296,900, and the average cost is $364,100. That’s a lot. Fortunately, if you have an annuity, you can sell it, and use the money as a down payment. If there’s extra leftover, you can then put that money into the house, and improve it.
A New Vehicle.
The average price of a new car is $33,560 — 2.6% more than it was in 2014. And chances are it’s going to continue increasing, too. While a used car is a far cheaper investment, it’s also an unwise one. Used cars don’t have nearly as much life left in them, and they’re going to wind up costing as much, if not more, in the long run. Eventually, you’re going to have to pay for some expensive repairs and maintenance. If you have a new car, though, you won’t have to worry about that, and it can last you for years and years.
A New Business.
The average cost of starting a new business is $30,000, but that’s deceptive. Some small businesses will cost more to start up, and some less. It all depends on a myriad of factors, such as the type of business it is, whether an office or store will need to be rented out, and more. No matter what type of business you’re looking to start, selling your annuity to start one is a good idea. Eventually, your settlement is going to run out, but if your business thrives, it will make you money for far longer, and could even provide more financial support than your settlement was giving you anyways.
If you have any questions about what you can do with the money you make from selling an annuity, feel free to share in the comments.