| You should not cash out your annuity when it's not in | | | | to evaluate for you whether the transaction is your |
| your best interest. | | | | best option. Turning in your monthly payments to |
| Here are 3 reasons it might not be in your best | | | | buy a new car may not be the best idea. Buying a |
| interest; it's too soon, you don't have a good enough | | | | home, attending school, averting financial disaster, |
| reason, it will cost you too much. Every day | | | | keeping a home, important medical needs, all are |
| someone cashes out their annuity or settlement | | | | great reasons to cash in future payments. Anything |
| when it might not have been in their best interest. | | | | else deserves a second look and more serious |
| It's an easy mistake to make when the call of | | | | consideration. |
| money and burden of financial stress is weighing | | | | What also deserves serious consideration is the |
| heavily on you. But read carefully and maybe you can | | | | bottom line. If you have to give up 50% or more of |
| avoid digging the hole deeper. | | | | your annuity's value is it worth it? That's a very |
| If you are a minor, or the parent of a minor trying to | | | | expensive purchase you are making when you give |
| cash out an annuity, it's too soon. Courts will rarely | | | | up $100,000 to get $25,000. And if your $25,000 |
| approve an advance of a minors settlement except | | | | buys you a car that depreciates and breaks down in |
| in cases of extreme need. A guardian will need to be | | | | 5 years, you have so little to show for your money. I |
| appointed to make sure the transaction is in the best | | | | think investing in start up businesses, vacations, |
| interests of the minor and not the parent. Another | | | | recreational vehicles, and entertainment items are |
| way it can be too soon, your payments are too far | | | | often questionable reasons to cash in structured |
| away. $100,000 due in 2025 is not going to get you | | | | settlement payments. |
| $100,000 today. In fact, you won't even get $25,000. | | | | The courts, the settlement cash out companies, your |
| The payout date is too far away. | | | | family and friends will all have their opinions as to |
| Unless you have a good enough reason. If you feel | | | | whether you should get an advance on your future |
| secure that your $25,000 dollars will yield over the | | | | payments. But the risk and responsibility to make the |
| next 20 years a return equivalent to the $100,000 | | | | best possible choice rests on your shoulders. Ask |
| you would have received, than maybe it's not such a | | | | yourself if what you are getting is worth what you |
| bad idea. Plenty of courts around the country will be | | | | are giving up. There are great reasons to get your |
| very interested in your reason for acceleration your | | | | money sooner rather than later, but there are also |
| settlement or annuity payments. Judges do their best | | | | times when cashing out is not in your best interest. |