Alternatives to Selling My Annuity

Alternatives to Selling My Annuity

People have all seen the J.G. Wentworth advertising “Its my money and I want it NOW!”  They’ve done a great job of getting people interested in immediate gratification from their rights to future money.  Many people become reliant on the receipt of those future funds and fail to realize the other options available to them.

Borrowing Money Inside the Annuity Contract

Some annuities and insurance policies provide for borrowing against the future sums that they owe you in the contract.  You need a copy of the annuity contract to know if this is possible.  Generally the transaction costs are much lower on these types of transactions.  They can be the cheapest way to get funds early.

Borrowing Against the Contract

It is possible to pledge the contract as collateral for a loan.  Rather than cashing the annuity contract out at a discount, you could pledge the contract as collateral on a loan at no discount.  They bank may not credit you for the full value towards the pledge; but, it won’t force a sale at that discount.  You’ll get full credit for the full amounts received later.

Don’t Spend the Money Until you Get It

Many times the money hasn’t been spent yet.  When that is true then you can just modify the time horizon for your expected use of the funds.

Sell or Liquidate other Assets.

Because people can’t easily comprehend or calculate the value of future money easily they will let it go cheaply.  In contrast, those same people know the value of their house, cars, trucks, snow machines and guns.  But, you don’t see them selling those assets for 30 cents on the dollar.

Past Articles About My Annuity:

  1. My Money Now!
  2. Valuing My Money Like an Investor

Future Articles about My Annuity:

  1. They offered enough for My Money to get a new Snow Machine — What a Deal?
  2. Negotiation Strategies for Selling My Money
  3. I’m Selling My Money — But They Say We Have to Go To Court
  4. Picking an attorney to evaluate your My Money Sale
  5. 40% Excise Tax on Buying My Money
  6. Buyer’s Attorney Has no Conscience Will Help You Give Your Money Away