What Investors Should Know About Buying and Selling Annuities
With sales topping $200 billion annually, according to the NAVA 2006 Annuity Fact Book, annuities have become one of the most successful financial products of the last 10 years. As part of its ongoing educational effort, specialty finance company J.G. Wentworth, a leader in the secondary market for annuities, has published a white paper entitled What Investors Should Know About Buying and Selling an Annuity. The paper addresses the reasons behind why consumers buy annuities as well as what pushes them to sell their policies.
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As a result of its ongoing contacts with financial advisors, brokers and agents within the annuities industry, J.G. Wentworth’s paper offers insights into the advantages and disadvantages of buying an annuity as well as the issues investors should be aware of when considering selling their policy.
We wanted to establish a bit of extra income. There was a good recommendation about ImmediateAnnuities.com on CNN. We also liked that we could see excellent reviews about them on Google. They were very thorough from our first inquiry to when we decided to buy our annuity from Mass Mutual. They always answered our questions promptly and followed up with the insurance company, too. We have been receiving our monthly payments since last November and couldn’t be happier. What more can we say?
According to Michael Vaughan, Managing Director of the J.G. Wentworth Annuity Purchase Program, "Individuals are looking to have more control of their assets. Annuities tend to lack liquidity and flexibility; therefore, consumers feel once they purchase a policy, there is no way out, should they need the money later. With the emergence of the secondary market for annuities, consumers who decide to buy a policy now have ’peace of mind,’ as they can cash in their policy if they are faced with unexpected financial circumstances and need to sell their policy for a lump sum."
The paper suggests that while consumers need to do their research when looking to buy annuities, they should also find out what their options are when considering selling their policy in order to get best value for their policy.
Source: jgwentworth.com - 04/17/2007