Sell Annuities from Home
Are you receiving annuity as you retirement income and you are wondering if can sell your annuities from home? Yes, you can sell or exchange your annuity for a lump sum through the secondary market for annuities. You might want to sell your annuity to cover the cost of an emergency or invest in business. To find a buyer right from the comfort of your home, set your terms and search for buyers willing to abide by your terms.
Steps to take
Determine if your annuity is transferable
Check your contract term to know if your annuity is transferrable. Nontransferable cannot be sold under any circumstance. Also, some annuities are structured and most states have laws protecting people from selling their structured annuity. If your annuity is structured, your transaction will be approved by the state court. It is advisable that you shouldn’t try to sell a structured annuity by yourself, talk to a trusted attorney or broker before proceeding.
Critically evaluate your annuity
Evaluate the resale value of your annuity before you search for annuity buyers. If you are unsure of the value, hire an accountant to value it for you. You should have in mind that sale off your annuity will result in you receiving a lower amount of money from the actual worth of your annuity. A lump-sum payment that is measured with a discount rate is paid to you. Therefore, you will get 8-15% less than you get if you waited for the payments.
Also, you need to know the tax implication of selling your annuity. Ideally, in the accumulation state no tax is accrued to your annuity, but on distribution, it can be taxed. Get in-depth information about tax terms and proceed to the next stage.
Search for buyers
From your home can find buyers for your annuity by contacting the insurance agent that sold you the annuity initially. They can help you find buyers and also charge you reduced commission for finding a buyer because you paid them a commission when purchasing the annuity. You can also search online for an annuity buyer. You can contact some reputable annuities buyers such as Peachtree Financial, JG Wentworth, and Stone Street Capital through their websites or mobile numbers.
If you find it difficult to find a buyer, hire a broker for a brokerage fee. Make sure you clarify that the broker is licensed.
Endeavor to get offers from enough companies, at least five before choosing. After finding companies online, get a free quote from their website using their quote form.
An excellent offer of about 80% of the annuity value should be considered. Do not rush into accepting an offer, understand the terms and condition perfectly. Do not accept a deal in which the annuity buyer wants you to pay out of pocket before a settlement is agreed upon.
Decide what kind of sale to make
You should consider kind of sales available before deciding what kind of sale to make available options include;
- Partial purchase
- Reverse purchase
- Split purchase.