The Top 10 Reasons People Sell Annuity Payments

With over $2.5 trillion worth of assets supporting annuities in the country, annuities embody an essential investment tool for people preparing for retirement while deferring their taxes. Sadly, at times an emergency need for cash arises or an investment change is needed, annuities are neither liquid nor flexible.

Under the best circumstances, it is estimated that about one out of ten annuitants would consider the option of selling annuity payments either in their entirety or just a portion of them. For instance, a number of annuity owners need a cash lump sum in order to adjust to major changes in their financial needs.
Others, on the other hand, have inherited an annuity and would rather cash our and reinvest the proceeds somewhere else. And there are also those who have changed investment goals and are focusing on wealth transfer strategies that will afford them better estate tax planning. No matter the specific reason, all these people have the same basic need – the need for liquidity.

So, Why Do People Decide to Sell Annuity Payments?

Based on business figures, the top 10 reasons why annuity owners sell annuity payments are:
1.      Wealth transfer planning
2.      Starting up a new business
3.      Buying a vacation home
4.      Need to augment current income
5.      Desire to dispose an inherited annuity
6.      Desire to help a family and friend
7.      Need to pay for unexpected expenses
8.      Employment changes
9.      Annuity payments are no longer needed anymore
10.    Buyer’s remorse

To Whom Should You Sell Annuity Payments?

If your financial plans have changed since you bought your annuity or if you simply need a lump sum of cash, know that you have the option to sell annuity payments. An established and reputable annuity payment buyer can help you cash out your annuity policy and give you the best value. You can begin your search for a buyer online. Many of them offer free, no obligation quotes. Narrow your choices to a handful of buyers and call their 1-800 numbers if you have further questions.