Do you no longer need consistent monthly payments and would instead prefer a lump sum? If so, then you should think about selling your annuity. Besides the reason I already mentioned there are several reasons why you would want to sell your annuity.
There are also different ways of doing it and they are all having their advantages and disadvantages. And for our professional annuity sellers, there are more ways to sell annuities invented every day.
Here is how.Of all the different annuities one can purchase on the market today, they all have one important characteristic- consistent and safe periodic payments. It may be Consistent, safe but very conservative. Annuities are not a great long-term investment.
If you are young or have too much of your investing dollars in annuities you need to diversify. Diversify for better returns and, believe it or not, less risk. When you are young, you do not need a safe investment. Over the long haul, a risky investment will yield more while you do not worry about the ups and downs of decades of market flux.
It is ok to have safe and consistent annuity payments but not too much so that it hinders your long-term investment potential.
Another reason to sell your annuity is to make a big purchase. You have plenty of money for what you want on paper but you only get a small percentage available to you in small payments. When you sell your annuity, you get everything. Whether you are getting your first home or a retirement vacation home, selling your annuity can make it happen.
How do you sell your annuity? The best and easiest way is to find a big reliable company that has experience and readily available funds to buy your annuity. It is a good choice but their fee and the amount you get will be much lower.
A second less popular way is to sell directly to someone else. The legal procedure is not the easiest but not impossible. Most annuities make it easy to transfer to someone else. Of course, look out for deals that seem too good to be true. Take out an ad in the newspaper or even Ebay and offer a good deal for both of you.
Other creative ways to sell annuities include faster or bigger payments, swapping for a better annuity or using it as collateral in a loan. Say you get $ 1000 a month for 30 years. If you can not sell the annuity outright for a price that makes you comfortable with, then you might be able to get an annuity with a much bigger payment but for less years.
That is better than nothing. You can also swap annuities with a company or individual and the annuity you get is easier to unload. That is more transactions and probably higher transaction costs but the result is exactly what you need. Lastly you can use your annuity for collateral on a loan. Here you would be hedging your interest in a bad way.
You get a higher yield on your annuity but then you have to pay interest on the loan. You will get the whole lump sum so make sure you are not taking a loss overall. This strategy works best, obviously, when there are low interest rates.
Maybe you are selling annuities professionally, and hopefully you made it all the way to this point in the article. You may think you know all the ways to sell annuities but things are rapidly changing in marketing.
You need to know about online marketing. The main points of online marketing to sell annuities are search engine optimization, pay per click search engines, directories and email lists. Concentrate on these aspects of online marketing and you get to sell more annuities.
For several reasons, people decide to sell their annuities. They go about it in a variety of ways without knowing the advantages and disadvantages of their method. Going to a company, selling to another investor or getting a loan are several popular ways for some.
If you are a professional, you can maximize the power of the web. So now you know and now you should go get your payment. Good luck!
Image from page 178 of “Here and there in New England and Canada” (1899)
Image by Internet Archive Book Images
Title: Here and there in New England and Canada
Year: 1899 (1890s)
Authors: Sweetser, Moses Foster, 1848-1897
Publisher: Boston, Passenger Dept., Boston [and] Maine Railroad
Contributing Library: Robarts – University of Toronto
Digitizing Sponsor: University of Toronto
Click here to view book online to see this illustration in context in a browseable online version of this book.
Text Appearing Before Image:
present site at the Three Elms, not far from the KearsargeHouse, where it has been used as a boarding-house and as a military school.From this pioneer Joseph descended the Thompsons of the present day, so well known in tlie valley. In 1S40, S. W. Thompson converted his fathersfarm-house into a country-tavern, and established a line of stages, runningfrom Portland through North Conway and the Notch. In 1S61, he built thepresent south wing of the Kearsarge House, and eleven years later the mainedifice came into being, simultaneous with the arrival of the Eastern Rail-road at the village. Thompson made a contract with a dozen or moreartists, half a century ago, by which he boarded them for .50 a week,each, and sent their noonday meals out to their sketching-grounds, whereverthey might be. On their part, they agreed to date all their mountainsketches from North Conway; and the result was a most effectual advertis-ing of the hamlet, aU over the Republic, so that, after six years of this
Text Appearing After Image:
friendly league, the place received continually increasing crowds of summer-guests. The Washington House, near the Maine-Central station, was built aboutthe time of the War of 1812, by Daniel Eastman, whose funeral occurred inthe village church a year or two ago. For decades, this was a favorite stop-ping-place for Vermont traders and farmers, on their way between Portlandand the Green-Mountain State, with their heavily-laden wagon-trains. After-wards, it became a resort for summer-boarders, and enjoyed a goodly patron-age up to within a few years, when the erection of new and more modernhotels caused it to be abandoned and left to fall into ruin. The magnate of the valley, in those old days, was Dr. Alexander Ram-say, a small and deformed individual from Edinburgh, enjoying an annuity of some three thousand dollars a year from his Scottish forbears, and belovedby all the rustics, not less for his quaint Caledonian wit and his great medi-cal skill, than for the many benefactions which
Note About Images
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In this video I show how to calculate the present value of an annuity. In addition to converting the series of payments via the traditional discounting method I’ll show how to solve the problem utilizing a handy equation.
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