Partial and Full Sale
Cashing in your annuity comes with a lot more flexibility than you might think. You can choose between one of two options: a partial sale or a full sale. A partial sale is when you only cash in part of your annuity and save the rest to continue receiving on a regular basis over your payout period.
The second option is selling annuity payments for the full amount. In this instance, you’ll receive an offer that is valued at less than your total remaining annuity amount. But you could potentially benefit from receiving those funds up front rather than getting small amounts on a regular basis over a long period of time.
Before you make a rash decision, think about both your short-term financial goals as well as your long-term goals. Every individual has a different reason for selling their annuity but you want to make sure you capitalize on current opportunities while still feeling comfortable about your financial future.
Every person should have some type of monetary safety net. If you’ve never had one before, your annuity could serve as that buffer. But if you’re having financial issues right now, you may be tempted to sell at least some of your annuity.
Choosing between a partial and full sale is a major decision. Luckily, it’s not one that needs to be made right away. Instead, you can solicit offers from annuity buyers to get an idea of what you should expect in terms of both the financials and the process to make sure it really works for you.