If you’re a retired senior who is looking to make some income, selling your annuities may be a wise investment option. You can contribute a lot of cash to your future savings by following the simple steps to annuity success. By understanding annuity and keeping track of your payments, you can profit from selling annuity payments from your insurance.
What is an Annuity?
Simply put, an annuity is a fixed payment sold by insurance companies. By using it properly, it can help you set aside money into your savings without having to pay taxes on it. By investing it wisely, you can double, triple, and exponentially increase your retirement funds. To understand annuity further, there are two basic types of annuity that you should understand before selling annuity payments:
• Immediate annuity. This type of annuity lets you receive payments as soon as you make your first investment. This is usually a preferred option by those who are nearing retirement.
• Deferred annuity. This automatically accumulates money while the annuity pays out. It can sit for a long time or it can be cashed out as soon as the annuity owner wishes to start receiving payments.
Annuities can also be variable or fixed depending on the type of payout preferred. You can opt for a fixed sum tied to the overall performance of your investments, or you can combine the two options for potentially bigger savings.
Annuity Selling Options
Now that you’re aware of the investment opportunities that lay with selling annuity, there are a variety of ways that you can get started selling annuity payments. Those who are looking to retire are often faced with two main options: Partial and entire annuity selling. If you’re looking to invest immediately, consider these options for the best value.
- Partial Annuity Selling: You can sell a portion of your insurance annuity payments and contribute them to investments. Meanwhile, you can continue receiving your regular income without worry of being short on cash or savings. This also allows you to keep your tax benefits.
- Entirety Annuity Selling: By selling the entirety of your annuity, you won’t defer any of your payments. You can sell the entirety of your insurance payments towards investments, which will give you a lump-sum payment in your hands. This is in the placement of periodic payments, giving you much more control over your savings.
How To Sell Your Annuity Payments
Selling annuity payments can help get you out of any period of financial troubles. If you are looking to retire with a fair amount of cash in your savings, this is the right choice for you. The process of selling your insurance payments can be fairly simple, especially if you are looking to invest. Here are a few tips to get you started:
- Make sure that selling annuity won’t hurt your savings, and that you can continue receiving insurance payments.
- Contact an annuity investment professional. A professional can help you on your way to retirement by making sure that none of your investments are deferred and you are getting the cash growth that you need.
- Get a cash advance. Many professionals can offer you an advance so that you don’t suffer any downtime with your payments.
- Set a court date. Once you have made the decision to sell your income, you can set a future date to settle your reasons with a judge.
- Get cash! Once the judge accepts your payment transfer, you can immediately start saving for the future.
It can take anywhere from 1-2 months for an annuity payment case to settle, and in the meantime, you want to make sure you’re getting the correct value for your investments. Whether you decided to invest all of it or a partial amount, make sure you have enough while you wait for the approved payment period. How much will you get from your annuity payments? The amount of cash you receive depends on who you sell with, what your reasons are for selling, and what your initial insurance payments amounted to. The more annuity payments you sell, the more cash you will have in your hand. Invest in the future by putting all or some of your payments aside to sell.
Top Reasons for Selling Annuities
There are several reasons why a retired or soon to be retired individual might want to sell annuity payments. While this list isn’t comprehensive, it covers some of the major ideas that can make a successful investment:
- Starting a new business, or investing in a business.
- Paying off debt, including student loans, medical debt, credit card debt, and more.
- Investment, for stocks, retirement funds, property, or future savings.
- Buying or fixing up a home.
- Losing a job and looking to invest for the future.
- Assisting family members in need.
- Inheriting an annuity and looking to sell it for cash.
- Buyer’s remorse.