What is an annuity?
An annuity can be defined as an income that one receives in a series of regular payments over a long period of time. It can be inherited or as a result of winning a case in lawsuit or winning a state lottery. An annuity offers one with a secure future and has no limit on the amount you can contribute as an investment.
An annuity can either be immediate where you begin receiving payments immediately or it can be deferred where you begin receiving payment at a preset date in the future. We also have different varieties of annuities: indexed, varied and fixed. Each of these varieties has its own payout potential and level of risk.
There comes a time in your life where there is an immediate need for a lump sum of cash. This is when you start combing through books, articles and other resources trying to learn how to sell annuities. You may wish to invest in a business that promises higher returns than the annuity payments. You may also want to start a new life and buy a new home. This is where you are likely going to opt to sell your annuities. Although the cash you receive will be lower than the total annuity, you will be in a position to handle your immediate and pressing needs.
Selling annuity settlements can be a complicated process. There a several considerations and steps which ought to be followed. Failure to follow those steps may lead to annuities being lost. So, how can I sell my annuity payments successfully? You ask. Worry not. The steps outlined below can help you learn how to sell annuities.
First, come up with the value of your annuity. You can do this by finding out the annuity’s future discounted value. This will give you the price you are supposed to sell the annuity at. If it happens that the annuity rates are not appealing, you may want to hold onto your annuity until the market value makes financial sense.
Second, decide whether you need to sell the entire annuity or part of it. If the company buys an annuity at a nice benefit, then that’s an opportunity to sell part of tour annuity settlement.
Third, contact an accountant or attorney to take you through the basics involved in how to sell annuities. An attorney or accountant will tell you if your annuity can be sold and the financial implications of selling it. Knowing the financial implications of selling annuities will place you in a better position to make a decision on the matter.
Fourth, choose a company to trade with. This is a tricky step. Research all the companies in the secondary market and find out which ones are most established, experienced and reputable. Select one of the companies and contact them so that they can get the process. They will give you a quote, usually for free. Some of them will be generous take you through the whole process of how to sell annuities if you are new to it.
Finally, ask for the transfer forms and sign them. Ensure to keep a copy of the forms so that in case the company defaults you have evidence of doing business with them.
So, if you opt to sell annuities, it is advisable to try and follow the above guide as much as possible. It will help you get the most out of selling annuity settlements.