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Step 1
Call the company that writes the annuity checks out to you. Explain that you want to sell your annuity. Oftentimes, it can sell your annuity to you directly and can offer a quote. This is often called surrendering your annuity to accept a smaller lump sum payment. Ask about any surrendering charges or other fees involved with selling your annuity direct with the company. Jot down the company name, phone number, name and extension of the person you spoke to, and the quote.
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Step 2
Shop around. Get quotes from companies willing to buy your annuity from you. You can get free quotes from most companies that buy annuities. This is important because you should want to get the most out of selling your annuity. The second Website in the resources box will help you get several quotes from companies that buy annuities so you can compare your options. Make sure you write down the information for yourself: the quote, company name and phone number.
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Step 3
Consider the amount of money you need every month and what amount you could sell. You do have the option to not sell all of your annuity. For example, if you receive an annuity check every month for $10,000, but you only need $8,000 of it to live off of, you could sell the $2,000 per month for a lump sum. This might be a better option if you do not want to or cannot sell all of your annuity.
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Step 4
Get some advice on the tax consequences of selling your annuity. If your estate if above the tax threshold, you could lose almost half of your annuity sale to taxes. If you use the sale of your annuity to invest successfully in stocks, mutual funds or bonds and pass them down to your children, you could make up the difference and avoid taxes on it. There is a link to the IRS Website in the resources box for more information about tax penalties for selling an annuity.
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Step 5
Make your decision. Now that you have a list of companies to possibly sell your annuity to, you need to make your decision. After getting these quotes you may decide not to sell your annuity, but at least you looked into the opportunity before making a rash decision. If you have chosen a company to sell your annuity to, call it to complete the transaction. Ask about any fees before you tell it that you want to sell and that your decision is final.
