Annuity Buyouts

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is An Annuity Buyout?

An annuity buyout occurs when a company or an individual receives a lump sum payment in exchange for giving up future annuity payments. This is typically done through an annuity broker, like The Annuity Expert, which specializes in these transactions.

Annuity Buyout

How Does An Annuity Buyout Work?

  1. Initial Contact: You approach an annuity broker.
  2. Offer and Evaluation: The broker presents your annuity details to buyout companies.
  3. Receiving Offers: Companies make offers for your annuity.
  4. Decision Making: You decide whether to accept an offer.
  5. Completion: Upon acceptance, the paperwork is completed, and you receive a lump sum.
Annuity Buyout

Advantages and Disadvantages of Annuity Buyouts

  • Advantages:
    • Immediate Cash: Useful for urgent financial needs.
    • Flexibility: Freedom to invest or spend the lump sum.
  • Disadvantages:
    • Lower Total Value: Lump sums are usually less than the total of scheduled payments.
    • Tax Implications: Potential for higher taxes on the lump sum.
Buy Out Annuity

Role of The Annuity Expert

  • Specialization: Focuses on annuity buyouts.
  • Relationships: Connections with multiple annuity buyout companies.
  • Expertise: Offers guidance throughout the buyout process.

Annuity Buyout Process Steps

StepDescription
1. ContactApproach an annuity broker
2. OffersReceive offers from buyout companies
3. DecisionDecide whether to sell your annuity
4. CompletionComplete paperwork and receive payment
Buy Out Annuity

Conclusion

Annuity buyouts offer a way to get immediate cash in exchange for future annuity payments. While they provide flexibility, it’s important to consider the lower total value and potential tax implications. The Annuity Expert specializes in facilitating these transactions, offering expertise and connections with multiple buyout companies.

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Do I need a lawyer to sell my annuity?

The answer to this question depends on the specific terms of your annuity. Generally speaking, it is unnecessary to hire a lawyer to facilitate the sale of an annuity. However, before proceeding, you may want to speak with an attorney familiar with state and federal regulations concerning annuities and taxation considerations.

If my annuity is bought out, is that income taxable?

Income from a structured settlement can be taxable depending on the specific terms of your annuity. If you have received or expect to receive payments from the settlement, it is best to consult a tax professional to determine what portion of these payments may be subject to taxation.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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