Annuities are a great financial instrument for many people looking to plan their retirement. They offer a guaranteed income stream for the rest of your life, and they can provide tax advantages as well. Certain annuity payments can be sold if you need liquidity in your investment portfolio, but there are some things you should know before making the decision to sell. This blog post will outline 3 tips that will make selling your annuity payments easier!
Determine the Value of Your Annuity Payments
Before you sell your annuity, you should determine the value of your annuity payments. This will give you a better idea as to how much the payment from selling would be worth in comparison with what it is worth now.
Find Out What Other People Are Selling Their Annuities for
Ask family, friends, or colleagues who have received an annuity and sold it what their annuity was worth and how much they sold it for. This gives you a baseline perspective of how much people regularly sell their annuities for.
Consider How Much Time You Have Left to Live and Plan Accordingly
When you set a price for your annuity payments, ensure that it is something that will help give an inheritance to those who are left behind. If the person selling has less than five years of life expectancy or if they have just started using their social security benefits, then getting rid of what would be seen as “dead money” can make sense if they aren’t able to benefit from it.