Cashing in Annuity Payments for a Lump Sump

Life is filled with uncertainty. One moment everything is coming up roses as they say, and then in the next moment some unfortunate event befalls us. If you have a steady stream of income from a lawsuit settlement, lottery winnings, inheritance, investments, etc., there is a way to convert that stream of money into one lump sum to help with a financial crisis, medical emergency, or whatever situation you find yourself in.

Receiving a Lump Sum Payout

It is possible to sell the guaranteed annuity payments from a lawsuit settlement, lottery winnings, inheritance, investments, etc. and receive a lump sum to help you in your time of need. There are companies that specialize in purchasing annuity payments. They will buy the full amount of the guaranteed annuity payments, or a portion of your payments and give you peace of mind that you are searching for.
The first step is to review your financial situation and the terms of your guaranteed annuity payments with an advisor from one of these annuity purchasing companies. They will listen to you and help you align your financial needs with the resources you have available. In the case of real dire financial need, many of these companies can issue a cash advance up to a certain amount. Generally, the entire process of selling your guaranteed annuity payments takes up to 45 days. Much of this is determined by state law and the contract language for your lawsuit settlement, lottery winnings, inheritance, investments, etc. relating to the transfer of the funds.
Every situation is different. In the case of lottery winners, at the time of their winning they can take either a lump sum payout or choose to receive annuity payments over a fixed number of years. The lump sum payout is actually less than if they were to receive all the annuity payments. But after some time, if the lottery winner decides they want a lump sum, this is where a company that specialize in purchasing annuity payments can step in and provide that lump sum. But first they will need to help you navigate the state lottery laws for transfer of the funds.

Investments and Inheritances

With investments and inheritances, these funds earn interest based on a guaranteed rate of return or on market fluctuations. Some investment and inheritance funds are tax-deferred for a set amount of time. With an early withdrawal there can be tax implications. Often there are legalities in fund’s contract that if the person decides to withdraw funds early, there is a penalty and the value of the fund is decreased. Also, sometimes charges are applied with the early withdrawal of funds. These are some of the many stipulations that a financial advisor can help you understand and impact the amount of money you can receive by transferring a guaranteed annuity payment into one lump sum.