Should you sell annuity payments or just hang on to them? Getting good advice on this decision can be hard to find. With a suffering global economy, you can no longer put off answering the question. You have to decide soon if you are to weather the storm.
While selling annuity payments provides one with a lump sum that can be used to help ease your financial woes, the danger of unwisely spending the money can potentially put you in an even tighter bind.
What to Avoid When Selling Annuity Payments
• Overindulgence – Some people overestimate the lump sum they receive and begin to spend like spoiled millionaires. Pretty soon, the money’s all gone and these people find themselves with no lump sum and no more periodic payments.
• Being too generous – The lump sum you got from selling annuity payments is hard earned and you should think twice before playing the Good Samaritan. If you do not closely monitor how much you give, you’ll soon realize you have nothing left.
• Being gullible – Your lump sum will attract all sorts of unscrupulous businessmen who will try to persuade you to invest in all sorts of enterprises. Exercise extreme caution or else you may be duped into investing in an unprofitable venture.
• Giving to too many charities – While giving to charities is a noble thing; do limit yourself to giving to just one or two causes. Always remember that you did not win the lottery. You gave up future payments to get the lump sum you have and it would be courting disaster to think that what you have is easy money.
Always remember that while you have the freedom to spend the lump sum on anything you choose, you owe it to yourself to spend it wisely or else you will come to regret selling annuity payments.
