How to Turn Your Annuity Payments into an Investment

Monthly expenses

If you were the victim of a lawsuit or the lucky winner of a large lottery payout, you are probably familiar with annuity payments and lump sum payments. You were probably given the option between the two, not quite sure which one was the best choice for you and your situation. Most payout companies will encourage monthly annuity payments, stating how you won?t run out of money that way and you will have a set source of income for many years. This is why most people choose the monthly annuity payments, but many later find out that they may have been able to do more with the lump sum payments.

The idea of a set amount of money every single month for life may be tempting, but what about the idea of being able to reduce debt, purchase a home or a car with cash or start your own business, which will produce its own income? These things may not be possible with structured monthly annuity payments, depending on the amount that you are receiving every month.

Additionally, receiving cash for an annuity may actually save you money and increase your monthly payments even further. If you are able to purchase a home with cash, you will reduce your amount of debt and you will avoid pricey interest charges. Considering that over 40% of US families spend more than they earn, you can be sure that you purchase a home that is affordable for you and your family. You can decide based on the amount of lump sum money you have, and not on the amount of monthly payments that you are receiving.

Receiving cash for an annuity is an opportunity to invest your money. It can be risky getting used to a specific monthly income for years. When the monthly payments stop, you will be struggling to find ways to get it back. You may not be able to work enough hours or make enough income to cover the loss of monthly income. If you receive cash for your structured settlement or lottery annuity, you can consider making an investment that will either permanently increase your monthly income or provide you with an investment that can be sold in the future. Additionally, owning a home or a car payment and interest free is also a great investment, opening up money should you need it in the future.

Consumers vastly underestimate or underreport how much debt they have. In fact, as of 2013, actual lender reported credit card debt was 155% greater than borrowed reported balances. People are embarrassed and weighed down by their debt. They may have alimony payments, mortgage payments or student loans. Medical debt is also a huge problem in the United States. Nearly 20% of credit reports are hurt by overdue medical bills. Receiving cash for an annuity or having the ability to invest your money for further income is a great way to pay down debt and ensure a better future for both you and your family.

Many Americans are struggling with different kinds of debt. High mortgages, medical debt, student loans and interest charges really affect Americans and can make them feel weighed down. If you are receiving monthly payments, this may not be enough to pay down debt and choose ways to increase your income. It can be risky to get used to a specific monthly income that may not be there forever. When you receive cash for an annuity, you can find ways to permanently increase your monthly income.

Selling Your Lotto Win for a Lump Sum

Lump sum versus annuity

Do you have a structured settlement with a large amount of money due to you? Perhaps you’ve won the lottery, or a lawsuit. You have plans. Maybe you want to quit your job and see the world. Create a college fund for your kids. Buy your dream house on the beach. Start a business. But if you wait for the annuity to be paid out over time, it may be 30 years before you see all your money. You can however decide to get cash for your settlement and discover pre settlement loan benefits.

What to do when you win the lottery

Once all the excitement has died down, you find that it is a long wait for your money. And if you choose to stay wth the annuity settlement, it will be thirty years before you have all the money that’s due to you. Thirty years is a long time in anyone’s life and your goals and needs will have changed by then. You need the money now while you have the vision and energy to achieve your goals.

Also keep in mind that the value of money depreciates over time due to routine inflation and 5 million dollars will be worth less thirty years from now. On the other hand, if you sell your lotto win for a lump sum, you can access all your money now when you need it, to move on with your plans.

Cash for structured settlement: how does it work?

If you decide to get cash for your settlement, you will be working with a direct funder that has built a relationship of trust over time with banks and other financial institutions. If you’re one of the more than 37,000 Americans who use money from structured settlements each year, you may want to consider the pre settlement loan benefits of selling your annuity.

One of the benefits of an “immediate” annuity is that normally you can begin receiving payments in around 30 days. The vast majority – 92% – of those who sold their structured settlements report that they are satisfied with their decision.

So if you decide now not to wait for your money but to sell your annuity, thirty years down the line you may look back and think it was the best choice you ever made.

5 Reasons To Sell Your Annuity Right Now

Get settlement money now

If you’re interested in selling your annuity, you definitely aren’t the only one! There are plenty of reasons why people sell annuity payments, whether they’re dealing with a lottery annuity or with annuity settlements resulting from a lawsuit.

The most important thing to keep in mind is that selling your annuity payments can be simple and stress-free — you just have to be focused and figure out exactly why you want to sell you payments! For example,

  • Maybe you’ve found a better investment for your money — whether it’s real estate, the stock market, or a big purchase like a home or car. Annuities are kind of annoying because the money you put into an annuity really doesn’t appreciate over time; in fact, it depreciates, making an annuity a pretty poor investment strategy.

  • A lot of people just get fed up with all the fees involved in an annuity. Between management fees and the taxes you have to pay when you finally start withdrawing your payments, you can end up paying a lot of money toward basic tasks that don’t really matter.

  • Financial emergencies are another reason why people choose to sell their annuities, and although this probably isn’t the way you’d like to be spending your money, it’s definitely better to spend money that’s already yours rather than borrowing the money. It’s impossible to predict when these emergencies will occur, so it’s understandable if you don’t have savings to cover the costs.

  • One interesting trend that occurred following the economic collapse in the U.S. during 2007 and 2008 was that retirement funds began disappearing — and as a result, more people began pruchasing annuities just to make sure that they had something in the future. A lot of these people are now realizing that an annuity really isn’t a great retirement plan.

  • Last but not least, maybe you want to sell your annuity payments simply because the annuity is yours, the money is yours, and you should be able to spend or save it as you choose! Maybe you want to go back to school, start up a business, go on a big vacation, or just pay off some credit card debt. It’s up to you how to use your money — the only thing that really matters is selling your annuity safely and securely!

3 Reasons for Defendants to Choose Structured Settlement Annuity

Buy structured settlements

A Structured Settlement Annuity (SSA) is a tax-free, annual payment of money usually resulting from a lawsuit or insurance claim. Every settlement is different and structured to accommodate the specific needs of the individuals involved in said case. While people usually view these in the context of the plaintiff (those receiving payments), there are structured settlement annuity benefits to the defendants as well. Here are three reasons it could very well be in the best interest of both parties to come to an annuity settlement.

    1.) Success Rate: Perhaps un-success rate would be more accurate. The plaintiff is victorious in the majority of cases that go to trial (over 90%). For that reason most people on the defense side elect to try and settle outside of court (80-92% of cases by some estimates). Obviously you will be losing in the sense that you’ll have to pay something, but the total amount will often times be much less than if you leave it up to a judge/jury to award damages. Even if the plaintiff wants a lump sum most will be open to the idea because there are plenty of businesses that they can get cash for settlements almost immediately.

    2.) Reduce Cost: Lawsuits can be expensive. On average, employees that win a case against an employer will receive $150,000. Besides the outright cost of the payout though there are court fees, lawyer costs, and other expenses associated with going to trial. In the end it is usually a more cost-effective option to cut your losses from the jump and negotiate a fair Structured Settlement Annuity.

    3.) Insurance: Perhaps the most important reason to consider an SSA is the insurance implications. Depending on the situation and your provider they will sometimes cover the annuity payments for you. Obviously this will have an affect on your rates and premiums, but it will save you from having to come up with the finances on your own, or having to borrow from a bank at high interest rates.

Overall a Structured Settlement Annuity
can be beneficial to all parties involved. It should be one of the first options you look for if you’re caught on the wrong end of something like a personal injury lawsuit because of the above mentioned reasons, as well as others left out.

Selling Lottery Payments How it can Help

Selling an annuity settlement

Selling Structured Settlements

When you win a law suit you will be set up with a structured settlement or annuity. Settlements are not hard to come by, 80 to 92% of cases settle. Typically, these structured settlements offer small payments over a long period of time, taking most of a person’s life to be paid out in full. However, by selling a structured settlement or selling an annuity settlement you can begin receiving payments in as early as 30 days with an immediate annuity. Besides earlier payments, selling your structured settlement has other money saving benefits as well. Depending on your tax bracket, a structured settlement can save you 25 to 35% on interest income on state and federal taxes.

Selling Lottery Payments

Selling lottery payments cam be very beneficial. Instead of waiting an extended period of time to start receiving cash you can begin getting payments almost immediately. The lottery annuity pays you one large immediate payment followed by 29 annual payments, increasing by 5% for each payment.If you win a lottery payment of $50 million dollars you will likely receive an initial payment of $750,000 or more, allowing future annual payments to grow to $3.1 million.

Why Sell Your Payments?

Selling lottery payments can be a little confusing to some people. You might be wondering exactly how it can benefit you to sell your structured settlements. There are many circumstances in which you may need to get settlement money now:

  • Buying a new car
  • Purchasing a home
  • Personal and family medical bills
  • Paying off student loans
  • Paying college tuition or purchasing books for college
  • Paying off credit cards
  • Going on vacation
  • Getting out of debt
  • Starting your own business
  • Investing in your future

If any of these apply to you, don’t let waiting for your lump sum hold you back. Get cash for settlements right away by selling them to specialty finance companies.


Don’t let a slow structured settlement hold you back. Whether you have settlements from lawsuits or you’re looking into selling lottery payments, a finance company will have the answers you are looking for. If it’s time for you to get a lump sum of cash now and you’re tired of waiting, then take control of your settlement and start getting your payments quickly, on your terms.