For a lot of people getting your finances in order is a difficult process. Having to budget for the month ahead is great in theory, but something always comes up that throws even the best of plans into chaos.
Now consider someone who has come into a sizable sum of money, maybe in the form of an insurance payout or being left some cash in a will. In this instance it can be very tempting to splash the lot on something extravagant, like a car or overseas holiday; while others may prefer to organize an annuity payment so that they receive the money in installments making it less tempting to spend. This is often a really clever way of handling your cash, but what many aren’t aware of is that having taken out an annuity plan, you can still contact the company and say ‘I want to sell my annuity payment please’.
Annuities are usually bought for financial security, leaving you safe in the knowledge that you will have some money coming your way as part of the ongoing payment plan.
However, budgeting for the future is all well and good but you cannot predict the future and sometimes you have to adapt your plans according to circumstances. Many of these could be beyond your control – such as having to perform essential renovations on your home, buying a new car because your beloved vehicle has gone to the motoring graveyard in the sky, or maybe your son or daughter is contemplating going to University and you need to pay for their accommodation and materials.
You might be looking into going self-employed, running your own business and you will inevitably require a sizable investment to get things off the ground. While taking out a loan is a great idea, it’s not always possible to receive as much as you need so selling off your annuity payment to gain access to your own money in one go can help you to get things moving.
If you’re still intending to plan for the future, you don’t have to sell off the whole annuity in one go, you can always sell off a portion of it, leaving the remaining payments scheduled for the future – almost as a rainy day fund!