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Investing Your Money Properly

I still remember the first bad financial decision I ever made. My seven-year-old buddy told me that if I lent him a few dollars, he would pay me back ten a few weeks later. Unfortunately, he forgot all about his debt, and I was left without my allowance. Although it might seem like a silly example, bad financial decisions like that one plague adults everyday. I have had my fair share, and so I decided to create a blog dedicated to helping you to invest your money properly. Before you take your hard-earned money and throw it at a cause, think about the advice on my website to make a great decision.

Investing Your Money Properly

Should You Sell Your Annuity For A Lump Sum Payment?

by Penny Evans

Do you have an annuity you don't need or want anymore? Or do you need the cash for immediate financial needs and don't want to wait for the annuity to mature? You can sell it for a lump sum payment. There are many companies that will buy it from you and give you the cash you need, with no credit checks necessary. But should you sell it? What are the pros and cons of selling your annuity for a lump sum payment, regardless of your need for the cash? You want to be sure you're making the right financial decision, and one you will be happy you made without ever regretting it. Here's what you need to know before you call up an annuity buying company and offer to sell for cash.

1. Will You Have Enough Money for Retirement If You Sell Your Annuity?

According to BankRate.com, annuities are primarily used as vehicles for retirement income. When they mature, they will pay out a regular monthly income that can supplement Social Security, pension plans, and other retirement savings.

Before you decide to get cash for your annuity, look at your retirement portfolio and take stock of it carefully. Will selling the annuity leave you without a reliable source of income other than Social Security after you retire? Will its absence mean you are not able to meet your expenses once you stop working?

If so, you might want to reconsider selling it and look for other ways to get the money you need now. Alternately, you could consider selling only part of your annuity. You can do this and get the cash you need now, while still keeping a portion for your retirement income needs. You just need to decide how much of your annuity to sell and still remain comfortable in your retirement income.

2. Does Your Annuity Contract Allow You to Withdraw Part of It Without Penalty?

Many annuities impose a financial penalty on you if you withdraw money from them before they mature. If this is the case with your annuity, you should sell all or part of it for cash to avoid the penalty.

However, if your contract allows you to withdraw a certain amount without penalty, and the amount is enough to cover your immediate financial needs, you should do that instead. That way, you get to keep the annuity and its promised retirement income, and even have the opportunity to add back what you took out of it later, if you are able to build up your finances enough to do so.

3. Is the Company You're Considering Selling to Offering the Best Rate?

No company is going to pay you the full value of your annuity. They all buy the annuities they acquire for discount off the face value. Before you sell your annuity, do some shopping around.

After all, selling to a company that only offers 60 percent of the face value doesn't make much sense if there is another company willing to work with you that will pay 85 percent. Make sure you're getting the best deal, so you can get the most cash out of your annuity if you decide to sell it.


Selling your annuity can make a lot of sense if you have important financial needs that must be met immediately. You don't even have to give up the whole annuity if you need part of it for your retirement income.

Do some careful planning and shop around for the best rate before selling. If you do these things, selling your annuity can be a very positive financial experience for you and your family.

Visit http://www.mylumpsum.com to learn more.