When Should You Not Do Cash For Annuity?
When should you not do cash for annuity?
Quite a tricky question to a simpleton but to a businessman who is knowledgeable with the best investment schemes and plans available in the market today, this question isn’t tricky at all.
One should not pay his or her annuity in cash when the country’s inflation has become “market unfriendly”. Inflation could cause the value of one’s annuity payments in cash to depreciate in the future or appreciate whichever is the business world’s forecast at the time of investment.
Therefore, one is encouraged to not pay in cash and to instead stipulate in the annuity contract that one will be paying in kind through a real estate property of the same value as the annuity being paid for. As real estate property appreciates in the long run, one is confident that when the contract matures and the time for annuity cash out is already in the offing, one will be able to get an appreciated value of the real estate property this time in cash.
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