Retirement Strategies

Annuities are a time honored tradition among investors looking for added security in their retirement. The problem is, these are often misunderstood among beginning investors, as their eventual payoff may seem so far away, not to mention, you aren’t going to strike it rich investing in one of these. Well, let’s see if we can make an annuity look a bit more sexy to you.

If your age 60 or older, and have a nest egg which may or may not carry you through to the end, an annuity could become a very sexy addition to your near future, as it may help you maintain the current living that you have become accustomed to. If you are age 65, in poor health, and would like to leave you’re nest egg to a benefactor(s), then an annuity may not be in anyone’s best interest. As has been said before, annuities are not setup for bad genes.

This is when an annuity can be a bit of a gamble. You never know if you are going to live long enough to fully enjoy it, and if you don’t, nobody else may get to enjoy it either. However, while an annuity is a binding contract, there are options to get yourself out of one. Let’s say you invested $500,000 of your savings on an annuity, and then realized you would be much more comfortable in your golden years living in a condo in Florida.

Unfortunately, your savings are now tied up, and maybe your monthly income is not enough to cover it. If you only had that $500,000 back, you could buy it outright, and then only have to worry about your living expenses. Your best option in this situation might be to sell your annuity in return for a lump sum of cash. It is actually a lot easier to do than you might think. Another option that more and more people are finding themselves able to take advantage of, is called structured settlement factoring.

How to Cash Out a Structured Settlement
A structured settlement is similar to an annuity, although its circumstances are usually quite different. An annuity is more of an investment, whereas, the recipient of a structured settlement has usually suffered from a personal injury, and are receiving payments to help pay for damages and medical expenses. The problem is, that what happens when your payments outlive your injuries? What happens if you need that money now for an emergency? Whether its an annuity or structured settlement, you may have the option to cash in your payments for a lump sum cash payment.

The value of your settlement will depend on several factors, including fees, the insurance agency it is with, the number of years left on it, and the overall health of the market (economy) at the time of the sale. While there are many factors that can effect the value of your settlement, a structured settlement calculator (present value) will give you an accurate average of what you should expect.

If you are struggling to make ends meet, have debt, need home repairs, have costly medical bills, or are considering going back to school; cashing out your structured settlement may be able top make your dreams come true. Something to consider, is that you have a lot of options when selling your annuity or structured settlement. You can sell all your remaining payments in exchange for a large lump sum, or sell only a portion, enabling you to maintain that steady stream of income you’ve become accustom to.

Planning for retirement is something that a lot of people don’t think about until it’s too late. Whether you’re looking into purchasing an annuity, or selling your structured settlement; there is no time like the present. You never know what you’re going to be able to count on as you get older, such as your health, social security, and financial support from friends and  family members. Perhaps it is time to start asking yourself how much money you’re going to need to be happy, and where you can find it.