At first glance, it is not a very hard question to answer, but it is often met with a moments hesitation that precedes the response. The follow-up question is actually more important: “Just because I can sell annuity payments, should I?”
Tip #1: Do not Let Annuity Payments Be the First Things You Sell
During times of financial hardship, the things people tend to dispose of first are their insurance products. Rather than find ways of cutting down on unimportant expenses that are the true cause of their financial suffering, they focus on their “investment portfolio.” Most people would do much better selling their sports cars, jewelry, fancy gadgets and other luxuries before selling payments.
Tip #2: Just Sell a Portion of Your Annuity Payments
A few years ago, once you buy your annuity, it is a done deal with no turning back. These days, you now have options. A secondary market has created the opportunity to sell annuity. Like most markets, this secondary market was established to address the needs of those who need to sell annuity contracts. Sellers can place all or just a fraction of their annuity contracts up for sale and make arrangements for a lump sum of cash in exchange for the payments.
For example, if you have an annuity that is paying out $6,000 monthly, but have decided that you do not need that much for your monthly expenses, you can sell a fraction of that payment. In exchange for this portion of your payment, the buyer pays you a predetermined lump sum of cash. The sale of just a fraction of your payments provides you liquid cash you can use for immediate spending while maintaining a percentage of the annuity payments for your monthly expenses.