4 Reasons to Think Twice about Selling your Annuity

4 Reasons to Think Twice about Selling your AnnuityAs with any large chunk of money that’s sitting around locked away, it can be tempting to consider selling your annuity to free up that cash so you can make use of it now. As long as you have a good reason, selling your annuity can mean a nice windfall and the ability to pay off debts or make some great investments. However, if you have a poor reason you can end up losing a valuable investment which could be helpful later in life. Let’s take a look at four reasons to think twice about selling that annuity.

You Can Find Less Expensive Sources of Funding

Thinking about cashing in your annuity to start a business, fund the kids’ education or to build some investments? This can be an excellent use for the cash tied up in an annuity but it’s worth considering if there are any other less expensive sources of funding available to pay for the project. Interest rates are very low and if a line of credit or student loans are a better option, they may be worth taking. However, if you’re averse to taking on debt it’s probably a good idea to sell the annuity and to tuck some of the money away for a rainy day.

You Don’t Need the Money

It’s not a joke – if you don’t currently need the money you should absolutely hang on to your annuity. Of course, this isn’t the case for what… 99% of us!

It’s Too Early in your Annuity

Some individuals end up with an annuity and instantly get cold feet or buyer’s remorse about the entire thing. Yes, it could have been a mistake to get an annuity instead of handling things as a lump sum, but it’s also worth giving the idea of having an annuity a shot. They can be incredibly handy later in life, so if you’re new to annuities you might want to sleep on it for a little while.

It’s Too Late in your Annuity

Finally, the reverse can be true and it may be a little too late in your annuity to sell it off. This will largely count on how much you want to get out of your annuity and how urgently you need to free up the cash that’s trapped inside. If you have just a year or two left on your annuity, it’s in your best interests to speak with the team here at Rapid Cash Funding so we can take a look at your situation and make some suggestions for you.

When you are ready to sell your annuity or if you have questions, the team here at Rapid Cash Funding can help. Get in touch with us at 1-877-63-RAPID or by filling in the quick contact form up at the top right side of this page. Thanks for visiting and we look forward to hearing from you!

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