Sell Future Payments: A Primer on Selling Annuities
You’ve most likely seen the TV commercials – sell your structured settlement or annuity for cash now! You may wonder how it really works. Is selling your annuity a good idea for you? What is usually involved in selling annuities?
People sell all or a portion of their annuity payments all the time, and for a variety of reasons. Large lump sums may be needed to pay off debts, pay college costs for a grandchild or to pay for a medical procedure. A simple way to sell an annuity is to trade a set number of payments, say for example 60 months. In exchange for these payments the purchasing company would give you a lump sum. The company makes an investment return on their purchase and you get a tidy lump sum.
It’s important, however, to get more than one quote when selling your annuity. Different companies will offer you different amounts, so you want to make sure that you get the most money for your annuity payments. Shopping around is a key component when selling annuities.
Speaking with a tax attorney is also important. Unfortunately, in many cases you will have to pay taxes on this lump sum, so obtaining advice from a qualified tax attorney is invaluable. The tax implications with regard to selling annuities are usually not 100% upfront and clear, so guidance will help you minimize any surprises at tax time.
Lastly, consider why you are selling your annuity. You may need money now, but will taking a lump sum instead of monthly payments lead you to a worsened financial condition down the road? Annuities are purchased to guarantee income. If you give that up, will you really be in a better situation? Making sure that your financial needs are met for the rest of the annuity’s payment term can be more important than a lump sum.
If you believe that selling annuities is the best course of action for you, then call the Annuity Specialists at 1-877-519-8599 today for a free consultation over the phone.