Should I Cash in My Annuity to Fix Up My Cabin and Rent It Out Year Round?

KKT: You don't want to cash in the annuity because if you do, it was a deferred annuity. Chances are that $20,000 may be taxable to you. So to make this answer very short is you should not cash in annuity to fix up the cabin or to rent it out year round for income. You should sell your home and move into the cabin in Maine to retire at a lower cost of living.