Home
>
Structured Settlements
>
When Should You Not Cash Out Your Annuity?

When Should You Not Cash Out Your Annuity?

You should not cash out your annuity when it's not in your best interest. Here are 3 reasons it might not be in your best interest; it's too soon, you don't have a good enough reason, it will cost you too much. Every day someone cashes out their annuity or settlement when it might not have been in their best interest. It's an easy mistake to make when the call of money and burden of financial stress is weighing heavily on you. But read carefully and maybe you can avoid digging the hole deeper.

If you are a minor, or the parent of a minor trying to cash out an annuity, it's too soon. Courts will rarely approve an advance of a minors settlement except in cases of extreme need. A guardian will need to be appointed to make sure the transaction is in the best interests of the minor and not the parent. Another way it can be too soon, your payments are too far away. $100,000 due in 2025 is not going to get you $100,000 today. In fact, you won't even get $25,000. The payout date is too far away.

Unless you have a good enough reason. If you feel secure that your $25,000 dollars will yield over the next 20 years a return equivalent to the $100,000 you would have received, than maybe it's not such a bad idea. Plenty of courts around the country will be very interested in your reason for acceleration your settlement or annuity payments. Judges do their best to evaluate for you whether the transaction is your best option. Turning in your monthly payments to buy a new car may not be the best idea. Buying a home, attending school, averting financial disaster, keeping a home, important medical needs, all are great reasons to cash in future payments. Anything else deserves a second look and more serious consideration.

What also deserves serious consideration is the bottom line. If you have to give up 50% or more of your annuity's value is it worth it? That's a very expensive purchase you are making when you give up $100,000 to get $25,000. And if your $25,000 buys you a car that depreciates and breaks down in 5 years, you have so little to show for your money. I think investing in start up businesses, vacations, recreational vehicles, and entertainment items are often questionable reasons to cash in structured settlement payments.

The courts, the settlement cash out companies, your family and friends will all have their opinions as to whether you should get an advance on your future payments. But the risk and responsibility to make the best possible choice rests on your shoulders. Ask yourself if what you are getting is worth what you are giving up. There are great reasons to get your money sooner rather than later, but there are also times when cashing out is not in your best interest.

Jason M. Rigler
jasonr@ppicash.com
jasonr@ppicash.com

Committed to educating future payment recipients in the good, bad, and ugly of accelerating payments.

Wood Dale Chicago prom limo .. Lockport Chicago limo O’Hare

In The News:

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

Internet browsers are useful, but they can be dangerous. Clicking on malicious links can direct you to dangerous websites that steal information or infect your device.

Apple's latest iOS update introduces advanced artificial intelligence capabilities, which may be capturing and analyzing sensitive information.

Breach site confirmed 56,904,909 Hot Topic users' data leaked online. Tech expert Kurt “CyberGuy" Knutsson says the company's silence makes matters even worse.

Tech expert Kurt “CyberGuy" Knutsson discusses how an innovative Easy-Way kit turns standard strollers electric, simplifying navigation for parents.

Tech expert Kurt “CyberGuy" Knutsson talks about T-Mobile being hacked in broad cyberattack on global phone and internet companies.

Tech expert Kurt “CyberGuy" Knutsson shows you how to add, customize and manage widgets for quick access to apps and info from your iPhone home screen.

Wrong Google searches can not only compromise your device and personal data. They can also bring law enforcement to your doorstep. Hackers are targeting Google searches.

China's Shanghai Kepler Robotics has developed a new humanoid robot that can carry up to 35 pounds per hand for commercial applications across various industries

Checking your hearing has gotten easier with the new hearing test feature in AirPods Pro 2. You can take reliable hearing tests using your iPhone or iPad.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt "CyberGuy" Knutsson explains how a VPN — virtual private network — works and how running it can slow down the operation of your device.

The WalkON Suit F1, an exoskeleton developed to help people with disabilities, can actually walk over to a person in a wheelchair, solving a major problem.

ClickFix, a new scam targeting computer users, is on the rise in the U.S. The scam prompts its targets to click on a link to fix a problem.

Skydweller is the world's largest unmanned solar-powered aircraft that can stay airborne for weeks, and even months, without refueling.

The U.S. government said it is investigating after People's Republic of China hackers targeted commercial telecommunications service providers in the U.S.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Scammers are using increasingly sophisticated ways to lure unsuspecting victims, and some are impersonating an email help desk or support team.

You can unsend or edit your iMessages with the latest iOS updates. Kurt the CyberGuy explains how you can save yourself some potential embarrassment.

Kurt “CyberGuy" Knutsson says there’s been a rise in cybercriminal services using hacked police and government emails to send subpoenas and data requests to U.S. companies.

Kurt “CyberGuy" Knutsson discusses how Axiom Space and luxury designer Prada are collaborating on NASA's Artemis III spacesuit design.

Voice assistants may cause confusion across devices. Tech expert Kurt “CyberGuy" Knutsson offers some solutions to fix it.

Shameless scammers trick veterans into giving personal info or cash. Tech expert Kurt “CyberGuy" Knutsson explores five common scams.

Tech expert Kurt “CyberGuy" Knutsson helps you honor our heroes with these powerful podcasts, audiobooks and documentaries this Veterans Day.

When Should You Not Cash Out Your Annuity?

Structured Settlements