Any investor who has been around for a while know that sometimes things don’t go as planned. Not only can make poor investment decisions, but also that other factors come into play. Unexpected jobs, medical expenses, accident and other unpleasantries of life can bring an immediate financial need. With some investments, it’s pretty easy to pull out your money and apply against unexpected circumstances. Other financial investments require a bit more to terminate the contract and withdrawal. Fixed rate annuities (as well as other revenues) traditionally fall into this category.
In order to cancel the contract of annuity, would normally be subject to considerable yield and/or early termination fees from the insurance company. Annuities are designed to be a long-term investment that provides the value for the annuitant in time. They are generally intended to provide immediate income at a time of need.
Fortunately for investors, there is a secondary market for the annuity payments that can be pursued. You have the option to sell annuity contracts and/or payments for a lump sum. If you have financial need requires only a portion of the annuity payments to be sold, you can sell just that part of the payment stream. There are willing buyers looking to buy discounted payment flows and will be eager to take your payments.
Understand selling annuity payments is still a cost. Not only will sell payments at a price a bit obvious, but it should also cover the spread for the brokerage firm to complete the transaction. If you need is sufficient, however, this may be a small price to pay. Sale of all or a portion of your income on the market, you can make sure you have the money you need to meet your needs.