When Should You Sell Annuity Payments?

United States Supreme Court reports detailed the weakness and the strong points of selling Annuities. Examiners identified the “Sell Annuity” practice, or agents, as using “unsuitable product recommendations, without reasonable basis. Unsuitable changing and replacing of policies and procedures.”

The agent or company that you work with is the first important choice to make. The sales commission on the sale of a variable or equity-indexed fixed annuity products carries a large commission to the broker and advisors. The charge comes in a form of “higher surrender costs”. You need to make sure you are not working with a fraud.

You need market research in order to sell annuity payments. Timing is what this is all about. Since the investment is not typically used for emergency funds, it has to be sold at the right time. Tell the agent your are working with why you’re selling and let them use their experience to get this sell done. Calculate online if you need numbers today.

Annuity investments are not liquid. You need to find out how much you will pay in tax penalties. When you’re “violating a holding time frame”, you may pay a surrender expense. This is usually charged in the young years of the life of the annuity and will decline the longer you have had the annuity.

Watch the market and the performance. You need to sell at the right time and selling should not be a emergency because it can take up to two months. Talk to your agent about your reasons for selling. While searching for the right agent, you can use an online annuity calculator if you want to see “numbers” today.

Stable advice is to not sell an annuity that is “fixed, you should keep up on to it at the minimum until it is almost time to you retire. Annuities with variable and will change with inflation. Sell it before retirement but only if you or an agent you trust is watching the trends and performances of the market.

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