• About
  • Contact
  • Facebook
  • Twitter
  • Pinterest
  • RSS

Budget and the Bees

Buzz-worthy life tips for busy bees

  • Advertise
  • Toolkit
  • Money
  • Organize
  • Lifestyle
  • Travel

How to Sell Your Annuity Payment in 4 Steps

by Susan Paigeon May 29, 2020 ~ Leave a Comment

An annuity is a long-term contract between you and an insurance company in which you give them money upfront, and they’ll grow it through investing and later divide into payments for your retirement. While annuities are great for making sure that a large sum lasts for a long time, sometimes you need to access your money right away. If your financial circumstances have changed and you want to trade future payouts for a lump sum now, we’ll walk you through the process in four simple steps.

Why Should I Sell My Annuity?

Image via Flickr by Pictures of Money

Selling your annuity can help you get the cash you need right away in the event of a major life change or if you simply want to transfer your assets to a more profitable investment. Everyone has a different reason for selling their specific annuity, but here are some examples of situations where it simply makes sense to sell:

  • You have an investment opportunity or want to start a business
  • You or one of your children is buying a home and you want to make a down payment
  • You have a high-interest debt you would like to pay off
  • You are concerned about inflation decreasing your future purchasing power

1. Meet With a Financial Advisor

Before officially starting the process of selling your annuity, meet with a financial planner to help you decide if it is truly the best decision for your finances. An annuity is a legal contract, so you should consider all of the possible benefits and risks with the help of a seasoned professional.

Because annuities rely on long-term payouts, you’ll usually only be able to get a certain percentage of the annuity’s total worth in immediate cash. A financial advisor can help you decide if any initial losses are worth the potential gains. Your advisor can also help you decide if you want to sell the entire annuity, or just cash in on a portion of it and keep the rest for your retirement.

2. Research Possible Buyers and Get a Quote

Next, spend time researching different purchasers to see who will give you the best deal. Look for reviews, or ask friends for recommendations. Your financial advisor may also be able to give you leads on companies that will give you a great price for your full or partial annuity. Gather free quotes from multiple companies before making your final choice.

3. Submit the Required Paperwork

Once you choose a buyer, start on the paperwork to transfer the annuity into their name and get you paid. You can often get help from the settlement company’s lawyer or your own personal legal advisor.

4. See a Judge

You need a judge to approve the sale, so the final step is setting a date and preparing to appear in court. The settlement company’s lawyer will attend to represent them, and you can also bring your own lawyer. Make sure you have an ID and a professional outfit to wear and be prepared to explain how you plan to budget your lump sum once the sale is complete.

Once you complete the sale, you can often access your money within a matter of weeks and get on the road to financial independence.

Filed Under: Uncategorized

Previous post
Next post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2





Archives

Partners




Great Investing, Simplified: Get Stock Advisor for Just $99/year!

SHIPPING FURNITURE – SHIPPING FURNITURE IS OUR SPECIALTY. CUSTOM PACKING AND SHIPPING SOLUTIONS FOR SMALL MOVES.

Howtowrite.Customwritings.com

Disclosure

This blog is for entertainment purposes only and should not be taken as professional advice. As per guidelines issued by the Federal Trade Commission (FTC), we disclose that we may receive compensation if some consumers choose to use the links located in the content on this site. Additionally, some articles on this site may be sponsored.

Guest Posting

If you would like to guest post on Budget and the Bees, please feel free to introduce yourself and provide three topic ideas for our consideration. You can send e-mails to districtmedia1 [at] gmail [dot] com. We can't wait to hear from you!

Privacy Policy

We will not share or sell your personal information to third parties. Like many websites, we might collect information in the form of cookies to store your preferences. Our advertisers may also utilize cookies when collecting information about how users interact with links to their products. You may also see our detailed Privacy Policy.

Copyright © 2021 Budget and the Bees. Development by >Moonsteam Design.