Selling Part of an Annuity
Most people know they can sell an annuity, but they don’t understand they have several options when it comes to how much of the annuity they are able to sell. You don’t have to sell your whole annuity amount if you only have a need for a portion of the money now. In other words you can sell a certain amount of each fixed payment you are to receive in the future.
For example, you can sell half of your annuity payments and get a lump sum settlement for the present value of the amount this equals. You can then take that lump sum amount and use it to meet your needs. Some people use the money to fund college tuition or to pay off a high interest home mortgage. You can also re-invest the settlement amount you receive and make more on your money than you are making per the original annuity agreement.
If you are thinking that you are permanently stuck with the original annuity agreement, even if it is now financially unsound, then it might be time to sell the annuity in whole or part. You can get cash for a designated portion of your future annuity payments in almost any percentage you desire. You can sell an eight, quarter, half or three-quarters of the payments for example. This amount is determined by your personal financial needs.
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