If you or someone you know has ever worried about outliving their stream of income (that includes pretty much everyone), then an annuity may have been a topic of discussion. Whether a loved one has passed away and given you jurisdiction over the annuity or you’ve simply decided you don’t need it anymore, you do have the option of selling your annuity payments.
More and more, Americans like you are making exactly that decision.
However, the decision to sell annuity payments isn’t as easy as selling items in a garage sale, or even selling stocks. It’s a complex process that requires the assistance of a professional. If you’re planning on selling fixed annuities, here are five tips you need to follow for success.
Don’t Rush Things
One of the biggest mistakes you could possibly make when selling an annuity is to rush the decision making process. Nearly one in five Americans report being in debt hardship, and if you don’t take your time with this, you could just make your situation worse.
The first offer you find isn’t necessarily going to be the best one. If you take the time to shop around, you’re more likely to come across two or three potential options, and from there you can weigh the pros and cons.
Consult With Stakeholders
The average U.S. household carries approximately $129,579 in total debt, which means that your structured settlement annuity could help your family with that debt in the future. Before selling, make sure you consult with anyone who stands to benefit from the annuity. Then, make your decision accordingly.
Get Professional Help
As previously stated, selling annuities isn’t a simple task. There may be hidden fees you didn’t anticipate, such as the 10% surrender fee that sometimes accompanies the choice to sell annuity payments. While it’s not fair to charge someone for selling something that’s rightfully there’s, such fees are often hidden inside the annuity contract. To avoid being caught by surprise, you should enlist the help of a professional in the field.
Don’t Put All Your Eggs in One Basket
An annuity is a large investment, and as such, you don’t have to sell the whole thing. In fact, it may be more beneficial for you to sell annuity payments on a limited basis, especially if the annuity is acting as your income.
Above all else, make sure that selling your annuity payments is the right decision for you. Before you make any decisions, consult with family members and professionals in the field to ensure you’re making a smart and sound decision.