Selling Annuity

Selling Annuity

Selling Annuity

Many people who have some type of annuity investments (fixed, variable or indexed) are not aware that selling annuity is actually possible and is commonly done by many investors. There could be many different reasons why you may want to consider selling annuity investments. For example you may have a better investment option that will earn you more money by offering a higher interest rate. You may need more money to invest in something else like purchasing a new house, stating an educational program or changing a career. Many annuities will have a time limitation stating when you can start getting annuity payments and certain fee that you have to pay if you withdraw before that date. Selling annuity is an option that will allow you to limit the withdrawal expense and get access to your annuity funds.

There are many different companies that will offer you a purchase price if you consider selling annuity investments. Since different annuities have different contract provisions, not all annuities can be sold but many have this option. The purchasing company will usually offer you the ability to review your annuity contract to determine f selling annuity is a possible option. If it is, the company will make you a purchase offer to pass the right to annuity or annuity payments to this company.

There are many different ways you can exercise your options for selling annuity investments. For example you may have an option to sell a number of your future annuity payments without actually selling the annuity itself. Or you may select to receive the lump sum payment by selling annuity investment in full. Make sure that you consult with your tax advisor on any tax consequences before selling annuity investments. Most of the annuity investments offer the ability to defer your tax payments and you need to compare the outcomes if you keep your annuity or sell it in the near future.

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