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Just like how uncertain most things can be, our plans in life may also change over time. That may include the decision to sell your annuity because your financial needs and goals have altered along the way. While this may seem simple, selling your annuities in Oakland County will take a long process of prospect-eyeing to numerous negotiations before you receive your money.
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Understanding the Process of Selling Your Annuity
Can I Sell My Annuity?
You can choose to sell your annuity payments in full or a portion of them. When you opt for the former, you will receive a lump sum of money upfront, equal to the value of your annuity minus taxes and discount.
This setup is perfect for those who need hefty cash at the moment to either start a business, provide a down payment for a house, or pay for an unexpected debt. On the other hand, when you decide to sell a portion of your annuity, you will receive a lump sum of money and resume receiving periodic payments later.
However, you cannot just sell your annuity whenever you want to. Financial advisors would recommend you consult them first so they can look into other alternatives you can consider. Other options may be a personal loan or a whole life insurance policy. These options are less expensive.
At the same time, you may have to consult with a judge who will approve if you can proceed with the sale of your annuity. It is especially true in cases where the grant is acquired through a lawsuit settlement.
What Are the Reasons for Selling an Annuity?
Most of the time, the reasons behind such action are unforeseen life events or realizations, including:
- Job loss
- Lifestyle change
- Emergencies
- Pay off a credit card
- Fund a divorce
- Pay for a funeral
- Spend on a college education or further studies
- Pay off student loans
How Does the Process Work?
The sale of your annuity may only entail a few steps, but the duration may vary based on a few factors, like looking for the best buyer and reaching an agreement.
Step 1: Research Annuity Purchasers
Take the time to research trustworthy buyers. Look for positive reviews and honest testimonials.
Step 2: Get a Quote
This is the time for you to negotiate and get the best terms for your annuity. Go for the lowest discount rate that you can get to receive the most of your money. Average discount rates range from nine to 18 percent.
Step 3: Consult with Your Financial Planner
Dealing with insurance policies and annuities entails a lot of intricacies. Make sure to consult with your financial planner before you jump into a decision. Ask if the agreement puts you in an excellent position to make the most of what you have.
Step 4: Submit Your Paperwork
After agreeing on the quote, you must provide all necessary documents and paperwork that your purchases or insurance company will require. These include identification, tax forms, and other related documents testifying to your ownership of the annuity.
Step 5: Present Your Case Before a Judge
It is an extra step you need to take for structured settlements. State and federal laws strictly mandate this step to ensure that your best interests are taken into consideration and given priority.
Are You Ready to Sell Your Annuities in Oakland County?
Deciding on this on your own may mean putting yourself in a pile of regrets in the future. Business is a tricky game, and playing it alone may cause you to lose. At ABB Wealth Strategies, we strive to extend ourselves in the service of our fellowmen to assist them with the complexities of financial planning.
Thanks to our skilled and honest financial advisors, we will make sure to minimize your risks and secure your economic well-being. Get in touch today to learn more about how we can help you!
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