Annuity Buyer Auctions

Category: Finance, Financial Planning.

Annuity buybacks normally occur when a specialty finance company offers a lump sum cash payment in return for previously purchased annuity payments. Annuity providers are not only buying back personal annuities, but also structured settlement payments that they previously sold to customers.

Major annuity providers are now beginning to offer buybacks as a way to compete for customers wanting to cash out annuities. The problem for some annuity companies is that specialty financing companies are often able to offer customers more money at a given time, thus capturing most of the buyback market. Let s take a look. What is on the horizon for such competitions? Where Competition Comes From? The first is specialty finance companies who s primary business model is buying annuity payments as investments. Competition for annuity buybacks falls under three main categories.

These companies can have multiple funding sources, and can often very good pricing. The third being independent brokers who work as the middle man with a variety of funding sources. The second is emergence of annuity providers themselves offering a similar service to specialty finance companies, buying back their own policies. Future competition is on the horizon in the form of commercial banks, saving and loans, credit unions institutions, and other lending companies who see the value of offering annuity buyback services to their customers. How Specialty Finance Companies are Competing With the Big Boys. Because the latter mentioned institutions are generally larger they may be able to offer more capital than specialty finance companies, it is quite conceivable that competition may become harder for the smaller companies to keep up with.

In order to compete with larger commercial companies, many specialty finance companies are relying on their personalized customer service abilities as a way to keep and gain customers. It all comes down to convenience for the customer. They are marketing their skills in quality of service provided, as well as the turnaround time it takes during the funding process. Specialty companies also rely on the fact that they may have more power with pricing and funding options, which can be tailored to a particular customer s needs and wants. Retirees are probably the biggest group of individuals who take advantage of buying annuity payments when they cash in on their retirement plan funds. Knowing What Retirees Want.

Many seniors would much rather set up an annuity installment plan that offers a safe, tax advantageous investment, longterm strategy rather than receive a lump sum of their earnings. Annuities are generally considered a very safe investment product. To this end, retirees want to feel comfortable and at ease with the company that they choose to delegate these payments and usually pick an A Rated Annuity Provider. However, financial circumstances change and annuity owners sometimes wish that they had access to the funds they have contributed to the annuity. Giving annuity owners the ability to access a variety of annuity buyers competing for their business is a service whose time is eminent. Annuity Buyer Auctions.

This type of service not only allow retirees to gain the best prices for the sale of their annuity payments, but also clients who own annuities in the form of a structured settlement. In addition, the competitiveness of an auction platform assures that the absolute lowest discount rates are applied to the buyback price of annuity payments, and the client receives the most amount of cash back possible. This forces buyback companies to fine tune their services to keep the annuity buyer game in a fair playing field. Annuities are a valuable part of today s financial world. Financial circumstances do change, and if annuity owners are in need of funds they have contributed to their annuity, then only one option should exist. They provide a safe longterm investment strategy with good returns.

Selling payments using an advanced auction platform that brings top annuity buyers together and gets the maximum amount of cash back for the sale of annuity payments.

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