Selling Your Annuity?
Annuities generally fall into two categories: deferred and income. Each works differently and offers unique advantages and disadvantages.
Annuity sales and investments is an aggregate several trillion-dollar segment of the US economy. It is also an area fraught with lots of controversy, including litigation, regulatory enforcement etc; in large part due to the high commissions earned by the sales representative relative to how the product actually performs for you, the investor. Other forces are at play as well that impact the relative value and suitability of your specific annuity contract when compared to your current and projected financial needs. These include the performance of US and global stock and bond markets, various securities indices, bank interest rates and the overall performance of the US and global economies.
The Insured Retirement Institute (www.irionline.org) tacks annuity sales and it an information center, amongst other things regarding annuities. Included are their latest industry statistics, ending in June, 2016. Sales of the first quarter of 2016 exceeded $56 Billion dollars. Imagine, 10 or even 20 + years from now, many of these people may find themselves in a similar situation that you are in today: Namely, the annuity that you purchased back then does not meet your current cash flow needs. It will happen to some of these people as it has to you.
You may find that the situation and purposes that existed and what you projected for the future differ substantially from your now, current circumstances, or that you may realize that the type of annuity that you purchased simply does not work for you now. What do you do?
Depending upon the annuity carrier, the specific contract language of your annuity; you may have options that include selling the entire annuity contract or part of the payments for a single lump sum of money now.
It is vitally important that you have an annuity contract expert review and evaluate your exact annuity contract along with your current and anticipated personal facts and situation prior to and before making any decisions.
Many of our experts have been some of the leading top tier annuity sales producers within the United States. Many have been in the annuity sales space as leading and recognized experts for 30 years or more. They can assist you in evaluating your annuity contract and also layout what your options are in advance so that you can make an informed and calculated decision.
Additionally, often there are serious taxation ramifications to selling your entire annuity contract or a period certain amount of payments for a lump sum of money. It is important that you independently consult with your tax expert prior to making any final decisions on what to do. If you do not have a tax expert, our firm will introduce you to several leading independent tax experts so you can select who you want to assist you to further evaluate your circumstances entirely from your personal tax situation.
Annuities | Types
Annuities are classified based on the timing of future cash flows; current vs. future cash flows. Annuities providing current cash flows are referred to as “income” annuities whereas annuities providing cash flows as of a future date are referred to as deferred annuities.
Annuities | The Secondary Market
You may find the financial circumstances prevailing and projected into the future justifying an investment in an annuity contract differs substantially from your current circumstances. It may also be the case, you realize the type of annuity you purchased simply does not work going forward – What do you do?
Depending upon the annuity carrier, the terms and conditions specific to your contract may provide the option to selling any portion of the payments for a single lump sum at any time you deem necessary.
To determine and evaluate your available options, it is imperative you consult an expert to understand the provisions of your annuity contract. It is also vitally important a review of your current financial planning needs are objectively evaluated before making a decision to sell annuity payments.
Annuities | Impartial Evaluation and Consulting
Many of our experts are among the top tier annuity sales producers and many bring 30 plus years of industry experience. Their expertise will assist and guide you in reviewing and evaluating your annuity contract and help you understand your options. Additionally, there can be significant taxation considerations to selling your entire annuity contract or a period certain amount of payments for a lump sum. It is important you independently consult with a tax expert prior to making a final decision to sell payments. If you do not have a tax expert, we will introduce you to several qualified, independent, expert tax consultants.