If you own and receive payments from an annuity with a period certain option, and are considering selling your annuity for a lump sum – be aware. Because selling annuities involves large amounts of cash, there are unfortunately many less than reputable annuity purchasing firms operating in the marketplace. Annuity selling scams flourish because of hasty individuals. If you have an annuity that you would like to sell, seek out a reputable buyer of annuities and structured settlements.

Owners of annuities often are approached by strangers offering to take their annuity payments and turn them into a lump sum payment. It’s important that you shop around when considering selling annuities. Do not take the first lump sum offered to you – instead, make sure that you do your research on the firms offering to buy your annuity. Shop around so you can find the best value for your annuity.

Another factor to consider is how much of your annuity should you sell? You do not have to sell your entire annuity; in fact, you can sell a part of your annuity contract, and then resume receiving payments, after a period of time. Simply put, you can sell a set amount of monthly payments from an annuity policy.

Of course, selling annuities or part of an annuity will likely result in a taxable event. It’s essential to speak with a qualified tax professional before you sell your annuity and during the annuity selling process. Be aware, however, that the annuity you’d like to sell normally has to consist of nonqualified, i.e. after tax, funds. You generally cannot sell annuities comprised of qualified funds (IRA, 401k, etc.)

The most important factor to consider is your financial situation, now and in the future. Getting a lump sum now might be useful, but it won’t do you any good if it leaves you financially destitute in the future. Many people believe that receiving a large lump sum of money will solve all their problems, but if you don’t take the future into consideration, you might end up even worse off financially down the road.

The Annuity Specialists at BuyAnnuitiesOnline.com can help you walk through all the steps to selling annuities, including helping you determine if it’s the right thing to do. Call 1-800-994-3023 for a free one-on-one consultation with an Annuity Specialist today.