Annuities have been touted as a great retirement investment strategy, but they're not for everyone. In addition, every annuity is not the same. Variable annuities are very different from fixed annuities and can be a big disappointment if they don't perform as expected but there are companies who buy annuities and can help out in these situations.
When you purchase a variable annuity, you have the option to invest in stock and bond mutual funds and the return of the annuity will depend on how those investments perform. While they may increase in value and offer a return rate much higher than could be expected from a fixed rate annuity, they can also perform badly and leave an annuity buyer scrambling for retirement income.
Variable annuities have very complex contracts and may involve fees for just about everything from administration charges to investment fees and even mortality and expense charges.
Selling a Variable Annuity -
Variable annuities can perform well and earn a lot of money, but they can also disappoint buyers who weren't totally aware of what they were getting into. If you find that you would like to sell your annuity, it's a good idea to get in touch with a reputable annuity company like to learn more about your options.
The cash value of your annuity -
If you purchased an annuity as a retirement savings plan, chances are you never imagined that you might one day want to sell it. But circumstances change, your financial needs may be different than you imagined and an annuity can be a viable source of money if you choose to cash it in. If you're considering selling and need to calculate the cash value of an annuity, there are a number of factors to consider.
Cashing in vs. Selling Your Annuity -
Some annuity contracts come with a built-in option to cash them in before their term is up, and receive a cash amount instead of the full annuity. This might seem like the easiest option for those who want to receive the cash value of an annuity, but it does come with some consequences.
This isn't possible for many annuities and when it is permitted, the insurance companies will only give you a fraction of the remaining total. This can severely devalue the annuity and cause a significant loss of funds.
The other option is to sell your annuity to a factoring company that purchases annuities in exchange for a lump sum of cash. You will receive your money within a few weeks of filling out the necessary documents and at the best rates available.
J.G. Wentworth can buy annuities for cash and has been a trusted purchaser of structured settlements and annuities for over 15 years.
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