Selling annuities is yet another way to earn good money. This is especially useful for people who no longer want the low monthly income and get huge lump sum revenue. For some, they are good short-term investments buy and sell since they do not really give huge monthly payouts.

Client-Focused Selling

If you are going to make a sale in todays world, there is only one principle that you should always stick with: good customer service. Nobody would like to buy something from an unprofessional and unaware seller. That is why it is important to build a client-focused approach to selling.

It is imperative, both ethically and financially, for a financial advisor to work towards the satisfaction of his prospect or client. He must therefore understand what they need and want and start from there. Consultative planning or selling is a good strategy to use in building good relationships with clients.

Consultative planning is the process of gathering information about the prospect (their needs, wants, goals, interests, assents and plans among others), putting them together, and creating a single plan that will best meet the prospects satisfaction. Financial advisors should attack this by listening and analyzing the information that they have generated. Then, they should translate these to find the best product and service that their client needs.

Steps in Consultative Planning:

Successfully selling annuities require a step by step procedure. You will have to do a preliminary planning by assessing your resources at hand. You will then begin to start your planning tailor-made to your prospects needs. Lastly, you will need to put your plan into action and try to build a lasting relationship with your client. Here are the more detailed steps in a client-focused selling:

1. Find the right prospects. A right prospect is someone who has a potential to do business with you and has the financial means to do so.

2. Approach your prospects. Set up an appointment with your prospects.

3. Meet your prospects and gather information about them. Make a good impression and ask related questions that you will need.

4. Analyze the information you have gathered. Look at what will work and what will not for your prospect.

5. Establish your custom-made goals for your prospect. Organize your analysis and create a goal to meet your prospects need.

6. Create an implementation plan that will best meet your prospects needs. Make your plan focusing on the goal you have set. Remember to get your prospects approval before implementing your plan.

7. Implement your plan or suggest courses of action. Put your plan into action. Guide your client if there are requirements.

8. Build good client-advisor relationship through good service. Always give the best service you can. Continuously guide your client through the contract term and offer them new plans that will both benefit you and your client.

You can also employ a reliable company to sell your annuity plans for you. This is the most convenient and easiest way to sell annuities. This is because these companies have the necessary sources and experiences to make good sales. Make sure though that you hire a reliable (preferably reputable) third party can assure you that your annuities will reap maximum benefits when sold.

But of course, there is a downside to it. You will have to pay them fees thus, not getting the whole profit of the sale.

Annuity payments correspond to a big amount of money if summed up. It can be acquired in a number of ways. Oftentimes, it is piled up through one’s retirement funds or maybe it is the proceeds of an insurance claim. However an annuity payment is achieved, it all boils down to one thing – the individual who acts as the direct beneficial will receive a good amount of money.

But then again, that amount of money is not readily available to the payee. It would be over a certain period of time in cases of retirement annuity and in a yearly basis like in insurance annuity payments. The amount is paid for in equal yearly installments as per the agreement or until the full amount of money is paid off.

Annuity payments can be used to refinance a house. You can use the money you’ll receive yearly to pay the yearly amortization of your house financing. People who are receiving annuities could specifically schedule their house refinance payment to achieve a more balanced cash flow.

For example, you are set to receive an annuity payment for the amount of 10,000 yearly. If your home mortgage amounts to 15,000 yearly, then it is best that you refinance your home loan and make the yearly payable to match the amount due with the amount payable.

This is how annuity payments and refinance mortgage would work for you. You can refinance your home to perfectly match your yearly cash in and cash out. It would work perfectly for you once you have balanced cash flow, things would look up better for you.

You can also choose to receive your whole annuity in one go. This means that instead of waiting each year for the annuity payments, you can just go to a financial company buying annuities and request a cash quote from them. This way, you will be able to get the full amount of your annuity instantly. You don’t need to wait for several years before you would get your money.

And you can do so much with that cash too. For starters, you can buy off the remaining mortgage of your house to make it fully your own. You can even choose to buy an entirely new house with the money you have.

It’s a good thing that annuities had become a lot more flexible now. Gone were the times that you have to sit back and wait for your money to arrive. Now, you have the option to do just that, or cash in the full amount of your annuity to give you full use of your money.

Refinance your homes today. Or better yet, buy it off using the amount of money you are to receive. You can definitely use your retirement annuity to ensure you of full ownership of the million-dollar dream house that you are living in today.

Today, you can do so much with annuities. It is up to you maximize the benefits that you will gain from it. You can choose to sell your annuity to your full advantage. Or you can just continue receiving it like you used to.

It’s your choice. But if you were to avail of the better option, you should definitely consider selling your annuity to the financial experts.

When emergency arises, people need to have money immediately they cannot wait for their annuity payments. It is a good thing then that there are various companies in the market that are willing to buy your structured settlement annuity so you can have cash when you need it most.

There are various reasons why people decide to sell structured settlement annuity some do it voluntarily while others do it because they have no other choice. Whatever the reason though, having an annuity payment buyer to turn to in time of need is definitely a welcome option for anyone concerned.

Basically, what you need to understand about structured settlements is that they are just financial agreements wherein compensation from insurance settlements will be paid using an annuity. This can be in the form of regularly scheduled payment installment over a period of time instead of being paid bulk payout. A lot of people decide to sell the annuity payments from this kind of structure because they want to be free of the restriction of waiting for the disbursement.

Some people prefer to receive lump sum because they need it for their children’s education, starting a business, or a medical emergency. You don’t need to be concerned that selling your deferred payment from the structured settlement annuity is illegal because it is allowed in both federal as well as state laws.

You might be curious as to how insurance settlements are structured though you need to realize that insurance companies purchases annuity with a lesser amount compared to your original settlements. The annuity will pay in a combination of the principal amount and the interest rate over a certain period of time until it earns enough for your monthly payment. But with the option to sell your annuity, you can sell your future payments immediately and be free of the disbursement schedule that was imposed by your structured settlement.

There are different types of structured settlements that an individual is allowed to sell. In fact even medical malpractice settlement, personal injury settlement, product liability settlement, or from a wrongful death settlement can be sold. So the questions most people want to ask are now answered. Because yes, you can receive lump sum cash for shared, partial, or even complete buyouts depending on the plan you choose.

Take note though that you should submit relevant documents for you to be able to sell structured settlement annuity. These include the completed copy of the application, the annuity policy documents, the extended release or the settlement agreement, a recent copy of the annuity check or stub, your tax return, two identification cards (one must have a photo), marriage license if applicable, divorce decree if applicable, a copy if the Will and Probate document if applicable, and copies of any assignment, revisions, and other papers that are related to the structured settlement annuity.

Meeting these requirements is actually quite easy if you have all documents at hand. If you decide to sell structured settlement annuity to an interested company, you should do some research on their rates because you may find another company that can buy your annuity at a higher rate.

But remember that most of all, you should be assured that the company you are dealing with is really reliable so that you can get the cash you need right away.

A huge emergency had just happened in your household and you are in immediate need of huge amount of cash. The only thing you have that could resolve your liquidity problems is your annuity plan. No doubt that the obvious solution to your problem is to sell your annuities, right? In this situation, you do not really have much of a choice.

Selling them would help you a great deal even if you do not get the amount your annuity is really worth. However, if you are just tired of paying out your annuity plan and you just want to get rid of it, or you are just impatient to get your hands on your cash, or you are anticipating a large expenditure in the near future, it pays to think it over a hundred times. It is a fact that many people do not really know or fully understand our policies and contracts about insurances and annuities.

This is why there are a lot of fake companies out there that take advantage of people ignorant of their rights and of the worth of their annuity plans. Companies that pay much lesser than what these people deserve and take much longer to issue payment if they ever do.

So to guard yourself against such predators, you should arm yourself at least with the basics. You should at least understand the basics of your annuity plan, the things you have to consider and the right questions you should ask before selling your annuity.

First, consider your type of plan. There are various kinds of annuities and your selling decisions should be based on them. Each type of annuity works in differently from each other. There are two main types of annuity and they are fixed annuity and variable annuity. Fixed annuities are those that pay a fixed rate of return while variable annuities are those that allow the plan holders to invest in stocks and bonds.

Hence, the rate of return in variable annuities differs depending on the investments progress and the economic state of the market. However, these two sometimes branch out to other different types according to payments and other terms.

Other forms or the sub-forms of annuity come in as deferred annuity and immediate annuity. Deferred annuity gives you a guaranty that your investment would increase in value and you can sell it when you need income from it. On the other hand, immediate annuity enables you to liquidate your investment within a short time after purchasing the plan in a lump sum payment. The best thing about this plan is having the choice of life income with a refund payout. This ensures that the full value of your contract would be paid by passing the payments on to your beneficiary.

Now, the next thing you should consider is whether selling your annuity plan would truly benefit you or holding on to it a while longer would provide more benefits later. First basis on selling your annuity are the two main types of annuitiesfixed and variable.

If your annuity is a fixed annuity, holding on to it until before you retire is the best option. This annuity provides a stable income source for the rest of your life after you retire. After all, that is the very reason why you availed of annuity in the first placesecurity.

However, the rate of return in this plan is not assured to keep up with the inflation rate. So if you really want to sell it, the best time is before you retire.

Now if your annuity is a variable annuity, you also have to consider the timing in selling it. Remember that this plan does not guarantee a good rate of return, so selling it must be timed with the market performance.

Sometimes, selling it an earlier time would prove beneficial than selling it a later when the market is down and you really need the money. This would put you in a situation when you dont have much of a choice but sell it at a lesser value.

Many of us are baffled when it comes to dealing or understanding numbers. Lack of interest in learning our numbers is understandable as not everybody is gifted with the knack of comprehending the intricacies that involves calculations, computations and permutations of numeric variables. We oftentimes yawn and grow tired trying to understand the process of how some solutions are arrived at.

However, this lack of interest and understanding sometimes lead us to unwise decisions that involve losing a considerable amount of money. Oftentimes, it is already too late when we realize we made a huge mistake in investing or selling our investments, such as selling an annuity, for example.

Do you know how to compute the rate of return on selling an annuity to make sure you are doing the right thing? It is also this lack of knowledge that gives fake companies the leverage to prey on unsuspecting and trusting investors who do not know better. The number of scammers wouldnt be increasing if only we know our numbers, even at least the basics.

What is a Rate of Return?

Rate of Return, also called return on investmentROR or ROI for short, is the ratio of money gained or lost in relation to the initial amount of investment. Also simply called as return, it is the rate of profit or income you earn from your investment measured in percentages. It is oftentimes measured in annual or annualized rate of return on a specific calendar or fiscal year. This is your tool in determining how much your investment is gaining or losing, if it is appreciating or depreciating.

How to Compute Rate of Return

The rate of return is measured in percentages because monetary values cannot show a comparative relation of the gains and losses with the initial investment. For example, if you measure the gains of a 1,000 intial investment through a 50 interest and compare it with a 100 investment through its 20 interest, the 1000 investment would seem to be earning much more that the 100 investment.

However, further computation using percentage of the rate of return would prove otherwise. The 50 you are earning from your 1,000 investment is only 5% of your initial investment while the 20 you are earning from the 100 investment is 20% of your initial investment. In the long run, your rate of return from the 100 investment would prove much more beneficial coming from only a small investment.

To compute your rate of return for a period of one year, simply calculate the percentage of your monetary return in relation to your initial investment. Just like in the example above. This is called the Annual Rate of Return.

If you want to determine your rate of return for a period if less or more than a year, multiply or divide your monetary return to arrive at a comparable one-year return. This is what is called Annualized Rate of Return.

For a less than a year rate of return, say for example a 2% one-month rate of return would represent a 24% rate of return by simply multiplying 2% with 12 months. On the other hand, over a year computation of rate of return could be computed by dividing the sum of the monetary earnings by the product of the initial investment.

And the period of time it was accumulated, that would give you your Annualized Rate of Return.