Tips for Selling Your Annuity

Posted by rightway Funding on January 4th, 2020

Your annuity is a reliable source of steady income. But, when the time comes that you need money immediately, you can always sell it to a finance company.

If you're planning to do so, read on. Here are some tips that will help you get the best deal.

Know How to Sell It

If you're sure about selling your annuity, here's a simple guide on what you need to do.

1. Look for an expert: Selling your annuity is quite easy; all you need to do is find someone who will guide you along the way, like an attorney. Aside from that, you can go with a financial advisor from a company like Rightway Funding. Reviews from both people are reliable, so you can choose either.
2. Choose the best option: Your guide will give you payout options, which are partial, entirety, and lump sum. Each has its own benefits and drawbacks, and the final quotation will be based on this along with your annuity's value. You can talk with your advisor on which works best for your needs.
3. Fill out the paperwork: After agreeing with the final quote, they'll give you the paperwork to complete the process. This usually includes setting a court date and your signature. During this part, all you need to do is read them and sign if you're okay with it. As for the rest, the company will do it for you.
4. Get the money: After gaining approval both from the company and the court judge, you can expect to receive your money through electronic transfer. The waiting period can take from 3 days to 2 weeks, depending on the state laws.

Get Your Annuity's Worth

The main goal of any company is to make profit, which is why they'll try to get the biggest piece they can. When it comes to this, learning about the following can help you land a higher payout:

Discount rate: The discount rates are the difference between your annuity and the cash you'll receive. The lower this is, the better. The average allowable percent is around 12%, but what's common is 50%. If you don't negotiate, they'll most likely offer you ,000 from a 0,000 valued annuity.

Current Market: Since annuities are a form of investment, the current economic condition will affect its value. This means, if the stock market is bullish, you're bound to get a good price. On the other hand, if it's bearish, it's probably best to wait until your stock value gets better.

Learning about things like discount rates, the effect of the current market, and how to sell your annuity payments can help you get the best payout. To learn more about these, talk with a financial advisor or an attorney.