Useful Facts About Annuity Selling

Posted by Sell Annuity Blog | Posted on 09-08-2010

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Do you know how to sell your existing annuity? If you want fast cash in large amount, annuities are really viable options but you will not be that profitable until and unless you know how to do it. For those who have gained the experience, the process will be painless but for those who are not well informed, the task can be a tough one! Read the facts below and be knowledgeable… NOW!.

The first things to be informed about are the terminologies involved in the process. ANNUITY as Wikipedia describes it is a financial product which is sold by financial institutions to offer savings or financial planning. ANNUITANT is a person or persons who are receiving their income from annuity contract. ANNUITY CONTRACT or POLICY is an agreement which states terms and conditions of annuity and issues by an insurance company.

ANNUITY ISSUERS are the companies who issues annuity. The conversion of deferred annuity contract to the income payment stream is called ANNUITIZATION. There are still numerous terms that can flood you when your into selling annuity but the ones mentioned are the basic ones.

So how will the annuity selling prosper? You will need to price your annuities first. This can be done by discounting future payments by the discount rate. Discounts vary depending on the buyers but usually it’s between 7 to 17 percent.

Next thing to focus on are the buyers. There are many possible buyers for your annuity but are they reputable enough? You should cautiously choose the right one for you. An important consideration is whether you’re dealing with your broker or principal.

You can have better pricing through brokers since they can find multiple buyers for you. You may not be obliged to pay their brokers’ fee since buyers will be the ones doing it. Dealing with the principal on the other hand can also be a good option since there is an absence of brokers’ fee. Normally, the principal uses brokers to get them into business.

If you already have potential buyers, you will have to deal with the selling process. The first thing to do is to identify present and future financial condition and cash needs. Keep in mind that you can sell a portion or all of your cash payments in the future. You can consult a lawyer or financial advisor to assist you in the process.

Next step in selling annuity is to contact a financial advisor or an insurance company who can sell or issue your annuity. This step is vital to identify if you can surrender (cash out) your annuity and to determine the penalties included. Basing on the annuity type and contract, it will be possible to cash out the policy and pay the charges directly to its insurance company. This process can give you more cash than selling your annuity on your own. There are also immediate annuities which can be cashed out in an earlier period of time.

Your next step in the selling process is finding potential buyers for your annuity. Buyers can be found on websites. It can also be acquired through your friends and relatives. In selling, you must get numerous quotes for your annuity since the potential buyers will be asking these from you.

The above information are just basic when it comes to annuity selling. You can learn a lot more from books and other websites. You must not only trust your financial advisors or lawyers to sell your annuity for you. You must always keep in mind that proper information about the process can be the most powerful tool to gain more money.

Being wise on selling your annuity can bring you huge cash. So keep on learning and earning!

Sell Annuity Comparison For Cash

Posted by Sell Annuity Blog | Posted on 06-08-2010

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Annuity refers to the structured payment plan an individual receives from another party. The other party is usually the company acting on another person’s behalf, a government institution, or a financial agent. It pertains to the payment of a certain amount of money to an individual on a course of several years instead of giving it on a lump sum.

But before you go ahead and contact an agent to sell your annuity, you have to conduct some good research about the annuity sales industry so you’ll get the best deal in town. If you haven’t heard yet, there are quite a number of annuity agents working today. They are looking for people who want to sell their annuity payments for cold cash.

So if you still have a good sum of annuity to receive in the future and want to get all of your money up front, you just go to these agents and let them process everything for you. At the end of the transaction, you’ll be going home with all the money you projected, less taxes, inflation rate factors, and commissions.

Agents are constantly looking for people who want to turn their annuity to cold cash. As such, they are acting fast whenever a potential customer comes to them. If you were a person who is looking to cash in all of your annuity payments, be the wise shopper and ask around first before committing to anything.

The fees of these agents is anywhere from 5% to 25%. This means that you have to deduct that amount from your projected total annuity. But that’s not all that’s deductible. There are also taxes, processing frees, and legal stamps to worry about. Therefore, it is best that you ask for a risk-free quote from these people. By risk-free, it should mean that you don’t have any obligations of pursuing the transaction if you otherwise changed your mind along the way.

The best route to go about this is to ask several quotes from several agents. This way, you will be able to make a good comparison of the projected total annuity payment you will be receiving. Feel free to inspect the quotes and the fine prints that are included in each of them.

Keep in mind that financial company who invests on your annuity sets up rules for every transaction. This is supposed to protect the interests of both the parties involved, although the company’s interests are mostly the priority. As an annuity seller, you have to be very familiar with these fine prints. You don’t want to go into trouble or any misunderstandings of some sort. It is best that you know everything you have to know about the transaction to be on the safe side.

Besides, you should learn about the basics of the transaction. Like when the check is going to be ready, what things you have to pay for, and the things you have to submit. A lot of financial companies buying annuities differ in these rules. Some writes a check up front after all the documents have been processed. For others, you have to wait a few weeks or so before the cash will be released.

Other companies would also do all the legwork for you and you just need to show up in their office to sign some documents. For others, you would need to make several trips that could otherwise be time and effort consuming on your part.

What You Need To Know When Selling Annuity

Posted by Sell Annuity Blog | Posted on 03-08-2010

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Annuity is a mode of payment employed entered upon by two parties wherein the payee gets a certain amount of money yearly until the whole sum is paid for. A person and a company or an individual and a branch of the government normally enter into annuity agreements for retirement payment purposes.

Annuity is a form of an investment. It can also be paid for in an immediate manner but only after the maturity period is reached. It is also subject to tax and its interest rate can either be fixed or variable. For people who pay for their annuity on a yearly basis until it reaches maturity, they can pay through a flexible premium plan or a single premium plan.

Right now, annuity payments come in the form of structure settlement, investment annuity, workman compensation, or lottery winnings. As stated earlier, you normally have to way for several years before you can get a lump sum out of your annuity payments.

However, with the sell annuity programs offered by different financial companies these days, you don’t have to wait very long to get your money. You can acquire cash out of it today. There’s no need to wait for decades.

There are many private company buyers of investment annuities in operation today. Most of them have been working in the industry for several years now. They are the experts when it comes to the cash out of annuity payments so that you can get your money fast and easy.

When going for these companies to acquire income out of your annuity payments, you have to make sure that you go for the organization that follows superior customer service. Keep in mind that you’ll be selling your hard earned retirement money. If you entrust it not to the right people, you might not be able to strike a good deal out of it. Worse, you might go through difficulties during the cash out process.

Response time is very crucial. The financial company you’ll employ should be prompt in answering your concerns about your annuity. They should work fast and efficiently, to the point that they act as if you’re their only customer. Their way of dealing with your should be on a personal level as well. You’ll immediately feel if you’re treated as a source of income and not as an individual.

Not everybody is familiar with the whole transaction of selling annuity. It is important that your agent explains everything to you before the transaction even begins. Selling annuity is not as simple as signing some documents and getting the check. It would have to go through numerous legalities amounting to a thick pile of paper work. And more importantly, you would have to understand every paper that you’re signing. That is, if you want to strike the better deal out of your annuity payments.

If the financial agent of your choice falls short in informing you of the things they have to do and they thing you have to understand, better go somewhere else. Or if you have the time for it, you can simply make a research about how these things work.

This way, you’ll have deeper knowledge about the processes and you won’t be taken as a fool during the transactions.

Sell Your Annuities Right

Posted by Sell Annuity Blog | Posted on 30-07-2010

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Times of problems and desperations come once or twice in a person’s life. Although it is known when it would come, it is inevitable and we have to be prepared for it. This is why people are always in search of security in their lives. Security in love, with marriages and pre-nuptial agreements. Security in their homes, with locks and alarms. Security in jobs, with those that are stable and guaranteed income.

Security in finance, with life and accidental insurances, pensions and annuities. Security of more money, with selling properties and investments such as annuity.

People always want to secure their future and rightly so because we don’t know until when are we able to support for ourselves. You may be young and strong right now but you never know for sure that you are not going to meet an accident that would turn your life upside down. So as humans, we try to be prepared. We seek to have a guaranteed income stream until we are old. As humans, it is inherent that we ambition to have more than a stable income and also have a guaranteed rate of return from our investments.

We even desire for a better and much more rate of return, that’s why we take risk in investments for a non-guaranteed but possibly higher rate of return. That is human nature. So it is understandable to want to sell your annuity for a higher rate of return or simply for a solution to your liquidity problem.

But of course, we always want to maximize the value of our investment so we should be very careful in making such huge decisions involving huge amount of money. We should do our assignment and research before taking step one of the sale process. Selling annuity investment right requires careful and diligent planning.

First and foremost, you should remember that selling your annuity would not provide you with immediate cash on hand. The process of selling annuities takes time, maybe around two months at the least. So if your liquidity problem is kind of urgent, selling your annuity may not be the best solution.

Second, study the market performance and trends. Is it an opportune time to sell you annuity? Do you stand to gain or lose if you sell it? You should learn and do your math. Calculate your rate of return and ask yourself if you are will to sell it at such a price. It would be best if you consult an expert on insurances, annuities and tax so you would be sure you are getting your money’s worth.

Third consideration is the buyer of your annuity plan. There are deceitful, if not totally fake, companies, who are out there to get unsuspecting and trusting investors. The secret? Never trust any of them. Always be cautious and wary of their proposals. These companies would come to you like a lover courting a girl with sweet promises and packages. They would not tell you the whole truth about the process.

All they are after is to get you as far into the selling process as they could until you are already deep in it and you could no longer back out. So again, do your research to find a reputable company that would not sabotage your financial future. Always remember that your sale should be first and foremost judicially approved. Seek legal assistance to prevent being a victim of unlawful transactions.

The Basics You Have To Know In Selling Annuities

Posted by Sell Annuity Blog | Posted on 23-07-2010

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A huge emergency had just happened in your household and you are in immediate need of huge amount of cash. The only thing you have that could resolve your liquidity problems is your annuity plan. No doubt that the obvious solution to your problem is to sell your annuities, right? In this situation, you do not really have much of a choice.

Selling them would help you a great deal even if you do not get the amount your annuity is really worth. However, if you are just tired of paying out your annuity plan and you just want to get rid of it, or you are just impatient to get your hands on your cash, or you are anticipating a large expenditure in the near future, it pays to think it over a hundred times. It is a fact that many people do not really know or fully understand our policies and contracts about insurances and annuities.

This is why there are a lot of fake companies out there that take advantage of people ignorant of their rights and of the worth of their annuity plans. Companies that pay much lesser than what these people deserve and take much longer to issue payment if they ever do.

So to guard yourself against such predators, you should arm yourself at least with the basics. You should at least understand the basics of your annuity plan, the things you have to consider and the right questions you should ask before selling your annuity.

First, consider your type of plan. There are various kinds of annuities and your selling decisions should be based on them. Each type of annuity works in differently from each other. There are two main types of annuity and they are fixed annuity and variable annuity. Fixed annuities are those that pay a fixed rate of return while variable annuities are those that allow the plan holders to invest in stocks and bonds.

Hence, the rate of return in variable annuities differs depending on the investment’s progress and the economic state of the market. However, these two sometimes branch out to other different types according to payments and other terms.

Other forms or the sub-forms of annuity come in as deferred annuity and immediate annuity. Deferred annuity gives you a guaranty that your investment would increase in value and you can sell it when you need income from it. On the other hand, immediate annuity enables you to liquidate your investment within a short time after purchasing the plan in a lump sum payment. The best thing about this plan is having the choice of life income with a refund payout. This ensures that the full value of your contract would be paid by passing the payments on to your beneficiary.

Now, the next thing you should consider is whether selling your annuity plan would truly benefit you or holding on to it a while longer would provide more benefits later. First basis on selling your annuity are the two main types of annuities-fixed and variable.

If your annuity is a fixed annuity, holding on to it until before you retire is the best option. This annuity provides a stable income source for the rest of your life after you retire. After all, that is the very reason why you availed of annuity in the first place-security.

However, the rate of return in this plan is not assured to keep up with the inflation rate. So if you really want to sell it, the best time is before you retire.

Now if your annuity is a variable annuity, you also have to consider the timing in selling it. Remember that this plan does not guarantee a good rate of return, so selling it must be timed with the market performance.

Sometimes, selling it an earlier time would prove beneficial than selling it a later when the market is down and you really need the money. This would put you in a situation when you don’t have much of a choice but sell it at a lesser value.

Understanding Your Rate Of Return

Posted by Sell Annuity Blog | Posted on 20-07-2010

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Many of us are baffled when it comes to dealing or understanding numbers. Lack of interest in learning our numbers is understandable as not everybody is gifted with the knack of comprehending the intricacies that involves calculations, computations and permutations of numeric variables. We oftentimes yawn and grow tired trying to understand the process of how some solutions are arrived at.

However, this lack of interest and understanding sometimes lead us to unwise decisions that involve losing a considerable amount of money. Oftentimes, it is already too late when we realize we made a huge mistake in investing or selling our investments, such as selling an annuity, for example.

Do you know how to compute the rate of return on selling an annuity to make sure you are doing the right thing? It is also this lack of knowledge that gives fake companies the leverage to prey on unsuspecting and trusting investors who do not know better. The number of scammers wouldn’t be increasing if only we know our numbers, even at least the basics.

What is a Rate of Return?

Rate of Return, also called return on investment-ROR or ROI for short, is the ratio of money gained or lost in relation to the initial amount of investment. Also simply called as return, it is the rate of profit or income you earn from your investment measured in percentages. It is oftentimes measured in annual or annualized rate of return on a specific calendar or fiscal year. This is your tool in determining how much your investment is gaining or losing, if it is appreciating or depreciating.

How to Compute Rate of Return

The rate of return is measured in percentages because monetary values cannot show a comparative relation of the gains and losses with the initial investment. For example, if you measure the gains of a $1,000 intial investment through a $50 interest and compare it with a $100 investment through its $20 interest, the $1000 investment would seem to be earning much more that the $100 investment.

However, further computation using percentage of the rate of return would prove otherwise. The $50 you are earning from your $1,000 investment is only 5% of your initial investment while the $20 you are earning from the $100 investment is 20% of your initial investment. In the long run, your rate of return from the $100 investment would prove much more beneficial coming from only a small investment.

To compute your rate of return for a period of one year, simply calculate the percentage of your monetary return in relation to your initial investment. Just like in the example above. This is called the Annual Rate of Return.

If you want to determine your rate of return for a period if less or more than a year, multiply or divide your monetary return to arrive at a comparable one-year return. This is what is called Annualized Rate of Return.

For a less than a year rate of return, say for example a 2% one-month rate of return would represent a 24% rate of return by simply multiplying 2% with 12 months. On the other hand, over a year computation of rate of return could be computed by dividing the sum of the monetary earnings by the product of the initial investment.

And the period of time it was accumulated, that would give you your Annualized Rate of Return.

Facts On Selling Annuities

Posted by Sell Annuity Blog | Posted on 17-07-2010

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The Benefits of Selling Annuities. Selling annuities offer potential for a lot of profit and sales opportunities for today’s financial advisors. You may choose to sell annuities for a lump-sum payment if you are going to make a big purchase such as paying for a huge investment or perhaps a property. Through this, you can spread your assets around and get profits for it in the process.

Why People Avail of Annuities:

* Continuing Fund

One of the most common reasons why people avail of annuities is to guarantee a stream of funds throughout their lifetime. They purchase annuity plans and then manage these annuities to sell for profits.

* Benefits to Your Heirs. Buying an annuity plan can be used to secure income for beneficiaries. Upon the death of the annuitant, the beneficiaries will have the right to the proceeds of the plans. This will secure a good future to heirs.

* Tax Advantage. Purchasing annuities has a tax advantage. Interest generated from annuity plans is not taxed until the funds are withdrawn. The tax deferred will be paid throughout the term of the payout.

Differnt Kinds of Annuities

As to how many deposits a client pays into the annuity:

* Single-Premium Annuity - allows only one deposit in an annuity contract.

* Flexible-Premium Annuity - allows policy owners to require additional contributions at any time during the duration of the contract.

As to when the payment starts:

* Immediate Annuity – requires an immediate payment in a contract, usually within a year of the contract date.

* Deferred Annuity – does not require an immediate payment, rather, a future-payment usually beginning a year after the contract date.

As to the type of money placed in the annuity contract:

* Qualified Annuity – the money placed as payments in an annuity contract is pre-taxed.

* Non Qualified Annuity – the money placed in an annuity contract has already been subject to income tax.

As to how interests are credited to the annuity contract:

* Fixed Interest Rate Annuity – offers a fixed interest rate (comes with a guaranteed minimum) over a certain period of time to the annuity owner.

* Indexed Annuity - offers an interest rate that is tied to an outside index.

* Variable Deferred Annuity – offers the annuity purchaser to participate in investments of annuity funds.

Parties to an Annuity

* Annuity contract owner – a person or a legal entity who purchases an annuity contract. The person or entity that acquires the annuity will have all the legal rights to the contract. He pays the premiums, chooses which optional policy features included in the contract, and has the right to withdraw or surrender the annuity he purchased. He also has the right to designate the annuitant and the beneficiary of the annuity contract.

* Annuitant – the person who holds the contract and to whom the title was designated. Proceeds of the contract are given to the beneficiary upon the annuitant’s death. An annuitant should be a living person. He is not given legal rights to the annuity contract. The owner and the annuitant may be the same person.

* Beneficiary - the person or the legal entity that will inherit the annuity proceeds upon the death of the annuitant. He, too, has no legal right to the contract and can only claim the right to the proceeds after the annuitant’s death.

Steps In Selling My Annuities

Posted by Sell Annuity Blog | Posted on 13-07-2010

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Selling your annuity involves a lot of planning. You will need to devise a plan that will not only help you sell an annuity, but to create a lasting relationship between you and your prospects. Here are brief discussions of the basic processes and steps of successfully selling your annuity.

The Preliminary Planning Process:

1. Finding and Identifying Your Prospects. The planning begins with finding and identifying your prospects. Just who are you looking for? You will have to find prospects that need and want your annuity and are able to afford it. And since you are working towards creating along-term relationship with them, you will also have to identify people who would most probably make repeat purchases and referrals for your annuities.

2. Approaching Your Prospects. The next step is to approach your prospects. This involves contacting and setting up appointments with them. You can talk to them over the phone, through e-mails or face to face. You can also set up a seminar where they can learn more about what you are offering. Remember that first impressions, last. So make a good one. If you have a successful start towards building a good relationship with your prospect, chances are, you will generate sales and gain all-important referrals to other prospects.

The Business Establishing Process

3. Gathering Information from Your Prospects. When you meet with your prospect, you should try to gather as much related information as you can. This will create an impression that you are working towards giving them the best possible offer you can give. Do not be afraid to ask a lot of questions. These questions will help you learn about your prospects needs, wants and what their plans are.

Make sure that you speak in a friendly but professional manner so as to gain their trust and confidence in you. You have to listen carefully take down notes to help you in doing the next step.

4. Analyzing Your Information. Analyze what will work and what will not work for your prospects from the information you have gathered from them. Look at their financial position, their needs, their wants and their plans.

5. Establishing Your Goals. Once you have analyzed your information, you should then establish your goals for your prospects. This involves organizing the information generated into a potential plan that will benefit you and your prospect. If your annuity plans do not seem to fit your prospects’ plans right away, suggest courses of action that will meet her plans.

Because you aim to create a long-term relationship with them, even though they are not availing of your annuities now, they may do business with you in the future after they have met their wants.

6. Setting Up an Implementation Plan. For your prospects that fit in your annuities, you should create a plan that will be both beneficial to them and yourself. You should present them your plan, explain what needs explaining and ask for their feedback and confirmation, if they permit. Clarify any misunderstandings your prospects have to settle into an agreement.

The Implementation Process

7. Implementing the Plan. After agreements between you and your prospects, you are now ready to put the plan into action. Complete the necessary matters and paperwork. Inform your prospects if they are required to do something in order to implement the plan. When they are already account holders, you should try to convert them into clients. Send your plans and policies to them and sell them on the benefits you can provide.

8. Creating Good Client Relationship. Lastly, you should aim to create a lasting relationship with your clients. You can do this by continuously guiding your clients with your ongoing service. This is also an opportunity to offer them other annuities you have and gain referrals.

Always remember to give a hundred percent (and more) in every service you need to provide for them to obtain their trust and loyalty to you.

Selling Annuities

Posted by Sell Annuity Blog | Posted on 10-07-2010

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What is an annuity?

An annuity is a regular income flowing monthly that a person receives through an investment. You can get this series of payments after your initial investment of money. Annuities are usually related to a contract between you and a life insurance company, but a charity or a trust can also be contracted for this same purpose.

Why would you want to sell annuities?

You are probably wondering what possible reason you can get from selling annuities. Here is a reason why. Annuities are, in general, highly safe investments. But considering the long run, they have relatively low returns compared to some other alternatives. So what you can do is to make it a short-term investment.

Selling an annuity will give you a lump-sum payment. Doing this is a way of spreading your assets around, reducing financial risks and increasing your potential of getting good profits from these assets. This can be especially useful if you are in need of money for a large purchase such as purchasing a property or settling a loan.

What are the ways that you can sell annuities?

Annuities come in many forms such as a single-premium or flexible-premium annuities, immediate or deferred-payment annuities, qualified or non qualified annuities and fixed-interest, indexed, or variable deferred annuities. It is important that you learn everything you can about these before purchasing and selling annuities of your own. Research on annuities can favor you the most. Pick out the ones which you think you can manage and you will be confident enough to sell to get optimum results.

When you have already learned a lot about the different annuities, you are now ready to sell them. Here are a few ways to do it:

* Find a reliable selling company to do it for you. The easiest and most convenient way of selling annuities is to find a reputable company that will do the selling for you. Hiring a reliable third party can assure you that your annuities will reap maximum benefits when sold because they have the sources and experiences to do so. But of course, you will not get the whole profit for the sale. You will have to pay them fees.

* Directly sell your annuities. You can also sell your annuities directly to someone who wants to buy them. This is not a popular choice of selling annuities because of all the legalities involved. You can research on what it takes to sell your annuities personally or online annuity selling opportunities that will help you to sell your annuity plans easily.

* Exchange annuities for other annuities. Another way to sell your annuities is through exchange. You can exchange, for example, your annuity that pays-off a smaller monthly income in a long period of time and another person’s annuity that pays-off a larger income in a shorter amount of time or vice versa. This will benefit you if you can not sell your annuity in a single lump-sum payment because of the terms of your annuity. You can, in effect, have a better chance of selling your newly acquired annuity in the market.

*Using annuities as collateral for loans. This works like the exchange of annuities for other annuities only that it serves as a security for your loan. It is an option you can take that may give you a higher yield on your annuity.

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