Looking for cash to
stay afloat? You're not alone. There are those who have a need for money and
will turn to some unusual places to get it.
Selling annuities payment, structured settlements, scheduled
lottery payoffs or other ongoing payments for cash became more popular during
the recession. But if you're still feeling the cash crunch, this tactic is a
potential option.
Unless the financial predicaments are dire, most financial
advisers recommend against cashing in annuities or structured settlements.
Selling off an annuity can trigger surrender charges as high as 10 percent, and
those who sell before age 59 1/2 can also face federal taxes and penalties.
Structured settlements are attractive because they generally provide tax-free
income for life. (Sell annuity payment)
Yet, sometimes cashing in is the only option. That $500 monthly
payment from an old accident may have helped with medical bills early on, but
if the beneficiary lost his job and fell behind on some bills or had to make
significant costly repairs to his home, a lump-sum payout of $50,000 may seem
quite enticing. . (Sell annuity payment)
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