Selling Annuities to a Trustworthy Company Is Important

Do you have an income annuity with a period certain payment option? Are you interested in receiving a lump sum in return for a number of your annuity payments? Be careful – because of the large amounts of cash involved in selling annuities, many unscrupulous operators flourish. Don’t get scammed; make sure that you thoroughly investigate a firm before selling annuities to them. Seek out a reputable buyer of annuities and settlements before taking the step to sell your payments.

You may be approached by strangers who say that they represent a certain company that wants to buy your annuity payments and turn them into a lump sum payment. Don’t forget to shop around when selling annuities. Don’t take the first settlement offered to you – instead, make sure to gather quotes from different buying agencies to find the best value for your annuity payments.

How much of your annuity should you sell? Selling your entire annuity is not required; in fact, you can sell a set portion of your annuity payments (such as five years), and then resume receiving payments after five years is over.

Unfortunately, selling annuities or part of an annuity may result in a tax bill. Speak with a qualified tax professional before you sell your annuity and during the annuity selling process to make sure you are covering all your bases, tax-wise. The annuity you’d like to sell has to be made up of nonqualified, or after-tax, funds. 401k or IRA tax qualified annuities are not eligible to be sold.

Don’t forget to look carefully at your present and future financial situation. Surely a lump sum would be helpful to pay bills or medical expenses. However, if you are left destitute down the road because of the poor choice of selling a portion of your annuity, it may be difficult to bounce back. It’s often thought that large sums of money can solve all problems, but if you don’t consider the future, you may continue to have money problems.

AnnuityAdviceOnline.com’s Annuity Specialists can help you learn more about selling annuities, including helping you determine if it’s the right thing to do in your situation. Call 1-888-837-4226 for a free one-on-one consultation with an Annuity Specialist today.