Do you have a dream? Do you want to live debt free, afford your dream house, buy a luxury car, pay for college, or start a business that will take the world by storm? Or do you just feel that you need extra cash on hand for all kinds of emergencies? If you are receiving annual payments as part of a structured settlement, you may be able to get cash for an annuity now. With your money in hand, you can make the positive changes your life needs.
Cash for medical expenses
The average American household is not doing so well in financial terms. In the past 12 years, the cost of living has gone up by 29% while household income has only increased by 26% in the same period. Consequently, most households have no savings and no extra funds for emergencies or major expenses. On the contrary, they are crippled by debt.
More than 40% of all families in the U.S. report that their expenses are greater than their income. And one in four people report that their medical debts are greater than their emergency savings. With credit card debt increasing, the average American household pays $6,658 in interest alone each year. For most people, getting out of debt is a distant dream. But if you decide to get cash for an annuity now, you can eliminate debt and begin to use your finances constructively.
The value of money decreases over time
Another thing to keep in mind is that the value of money depreciates over time. So if you are receiving annual payments of anywhere from $1,000 to 100,000, over a period of 25 to 30 years, you should be aware that by the time you receive all your money, it will be worth less in real terms. It will have less value and buy less. If, on the other hand, you choose to get cash for your settlement now, you can invest your money wisely and watch its value grow instead.
You should keep in mind that if you decide to get cash for a settlement, you will be taxed on the full amount. For many people, that is outweighed by the advantage of being able to use your money for living expenses and other cash needs now rather than 20 or 30 years in the future.
It’s your money
Who wouldn’t want to control their own money? A recent survey by American International Group (AIG) found that 65% of the respondents preferred a lump sum to structured payments. If you get cash for an annuity now, you can make decisions on how to invest it to fulfill your dreams.