Annuities can be a significant source of reliable, regular incomes during your retirement years. But you may decide to sell your annuity if you find yourself in financial trouble. Just like any other investment decision, you should make careful consideration and probably talk to your financial advisor before making the final decision to sell all or part of your annuity.
Why sell your annuity payments?
There are several reasons why people decide to sell annuity payments. For starter, you may want to consider your goals carefully, take a close look at your finances, expenses, and incomes before deciding to sell your annuity payment. Also, there are a couple of reasons you may want to sell some or all of your annuity payment, and some of them include buying a new home, paying for college, starting a business, paying off high-interest debt, and paying for unplanned medical expenses.
Do you have to sell all of your annuity payments?
There are several ways to sell annuity payment, so you don’t have to sell all of your annuity payment if you don’t want to. For instance, without sacrificing the tax benefits of an annuity, you can sell a portion of your annuity and still receive a series of income from your annuity in the future. Usually, partial sales are more suitable if you only need cash to take care of a particular need.
With a lump sum sale, you sell a portion of the overall value of your annuity. After the sales, you will still receive periodic payments for the stipulated number of years you would have been gotten before selling. You also have the option to sell all your annuity payments. Although you may receive a more significant payment if you sell all of your annuity payments than if you sell a lump sum or partial amount, you will lose your investment and you won’t receive any future annuity payment stream.
How much will you get when you sell your annuity payments?
The amount of lump sum you receive will depend on a couple of factors like your payment schedule, the discount rate, and the amount of your annuity. The fee the company charges in order to make a profit on the sales is determined by the discount rate, and this will have a direct impact on your lump sum.
Do you have to go to court to complete your annuity sale?
In the case where your annuity is a structured settlement, then you will have to go to court to complete your annuity sale. Several jurisdictions require the approval of the court before you can sell your annuity. The judge or court needs to verify that selling it is in your best interest and that neither you or your family will be placed in a financial mess because of the annuity sale. At We Pay More Funding, we will walk you through this process and be with you all the way.
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If you require cash sooner than what your annuity payment can offer, make the call to We Pay More Funding and get a free quote to see what you can receive for your future annuity payment stream.Sell Annuity Payments
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