Important Things to Know About Buying and Selling Annuities
Financial matters can be scary and near impossible to handle for some people. If math was never your strong suit, it can be a downright nightmare. Even if you understand how to manage your finances on your own, it can be difficult to do anything other than simply stay afloat. Things like lump sum versus annuity payments have you running the other direction, but the problem is, without investments, your money will never work for you. An annuity is the easiest way to invest without worrying about your financial background.
What is an annuity?
An annuity is a sum of cash paid out every year. Usually, it’s the same amount of money around the same time each year. They’re available in numerous sums, and are paid out in numerous payment cycles. With immediate annuities, payments begin within 30 days! Most annuities are paid over 25 years, or paid until death.
What are the benefits?
A really great benefit of an annuity is that you’re paid every single year no matter what happens. It’s your money! It can give you a source of money if you are planning to be retired or not working soon, or anytime when you may not have access to any cash. The other awesome thing here is that your money is working for you, because it’s put into a pool with money from other investors. You don’t have to do anything, and you’ll make money on it!
Can I sell my annuity?
Selling fixed annuities is incredibly easy, but be aware that there may be charges of up to 10%. Meet with a financial advisor to get the best deal! About 92% of people are happy with selling a structured settlement or annuity. Be aware of lump sum versus annuity when you first invest and you shouldn’t have issues. Lump sum versus annuity just translates to what is paid when.
Do you understand annuities slightly more? Will you ever invest? Why or why not?
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