Selling Your Annuity | How to Sell An Annuity | AnnuityFreedom.net

Time 2020-07-13 13:04:35

Web Name: Selling Your Annuity | How to Sell An Annuity | AnnuityFreedom.net

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Selling Your Annuity Selling AnnuitiesCan I sell my annuity?Yes. There are a few different options available when seeking to sell an annuity. The most common are: 1) entirety, 2)partial, and 3) lump sum.1)Entirety–selling an annuitypays out the entire investment as a lump sum and forfeits the annuity holder’s ability to receive future periodic payments.This is the most straightforward way to sell an annuity.2)Partial– a partial buyout allows the annuity holder to sell a portion of his/herannuitypayments and still receive periodic income without forgoing the tax benefits. For example, if the seller needs money immediately, he/she can sell years 1 – 5 of his/her annuity payments in exchange for a lump sum. After those five years have lapsed, the periodic payments will continue. Also, if the seller needs additional funds, he/she can buyout another portion of the remaining payments in exchangefor lump sums.3)Lump Sum–like a partial buyout, an annuity holder can choose to sell a portion of the annuity in exchange for a lump sum. This approach gives the seller more flexibility in choosing the amount of the lump sum, which would be deducted from future payments.There are many companies (called factoring companies) inthe market to buy annuities.Since there are many choices, it’s best to contact various companies and secure a variety of quotes. If you decide to proceed with selling your annuity, here are some of the documentsnormally requiredto initiate the process: 1) signed agreement with the factoring company, 2) signed copy of your annuity contract, 3) change of ownership forms as required by the insurance company that issued your annuity.Once the annuity buyer submitstherequiredpaperwork to the insurance company andifit is approved, you will then be able to collect your lump sum payment.What are the cons to selling an annuity?There are some drawbacks to selling an annuity. For example, selling an annuity can incur a “surrender charge,” which can be as much as 10%. In addition, the seller won’t be able to collect any future payments from the annuity, which can be problematic in terms of retirement planning. Also, there are likely to be tax implications for selling your annuity.Considered about the repercussions of a sale? Learn more about tax implications from selling your annuity. Get a FREE, no obligation quote. *By submitting your info, you accept the terms of our privacy policy.

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