Annuities are an agreement or contract that can assure an income stream for a definite period of time, in some cases for the entire life after retirement. Annuities are purchased through investment or insurance company. A structured settlement company also needs to be contracted in case you want to invest your Lump Sum Payout for receiving further benefits.



The very foundation of purchasing a Lump Sum Annuity should be dependent on what kind of investment you want to make and how you will be utilizing the lump sum annuity. This assessment is important and should be based on a fair balance sheet and on reality. Receiving lump sum payouts can be dependent on various circumstances such as needs like education expenses for future, buying a house, meeting any financial emergencies etc. A number of financial experts and agencies can provide necessary assistance and make you realize realistic assessments. You can also get online help in this matter.



Investing money in monthly annuity may be convenient for some and receiving lump sum payout may be a better option for others. In any case appropriate investment plan is important.



Though you may get a lot of assistance while investing in an annuity, the scenario may not be same when you want to receive lump sum payout. You must first call the organization where your annuity is held and ask them to make payment in whatever mode you have opted -- regular income payments or lump sum payout. You will also be required to fill the paperwork involved.



The second step goes towards contracting a structured settlement company if you have started receiving your annuitization payments. Most of these companies are law firms that by structured settlements or annuity payments. You can request a quote from these structured settlement companies and expect the quote to be a good percentage. It is better that you shop around a bit and find the best third-party buyout offer. Make investment only with that firm that offers the highest buyout. You will need to file the appropriate paperwork with the structured settlement company in order to complete the transaction.



The best way to go about your lump sum payout investment and use is contacting a financial advisor who may charge you a minimal amount but it'll make sure that the lump sum payout you have received remains safe and the income tax consequences can also be handled.







Brian Sibet also writes about Retirement Planning and Annuities including Lump Sum Annuity and How much is my annuity worth?

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