Trying To Sell 19 Year Annuity At Discount...any Ideas?

Quote from WECpoker:

Hope this post works in this section....

Hi

I received an immediate 19 year annuity that pays $9,000 per year in May of each year (next payment 2010--total of payments $171,000) written by Genworth Insurance. The Present Value in May was calculated at $113,000. I am trying to sell this annuity at a fair discount so I can receive a lump sum, and whoever buys it can get it much cheaper then if they buy an annuity directly from the Insurance Company. Arizona Law allows transfers of Annuities so that would present no problems (and the insurance contract allows for them).

After research I have discovered the following:

1) There are many firms the will buy these annuities (and structured settlements, lottery winnings, etc), but they are an extreme rip-off and are basically stealing from people who do not know better
2) I have tried contacting many banks for a loan using the annuity as collateral. Almost all will not even entertain, although banks used to make these loans at one time. I do have one bank considering at the moment.

If anyone has any ideas that I have overlooked I would appreciate it!!!! I am thinking of advertising in classified ads in financial newspapers or websites...but if anyone has an idea which would be best I thank you in advance.
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Don't do it. I had a friend in your position. Receive a structured settlement at your age, for a major car crash, or lump sum. Attorney, who made the same either way, said take the settlement. He received 5 times the lump sum for settlement, most of which comes towards retirement. Turned out to be 13% interest non taxable. Attorney said everyone at a young age blew the money. One guy bought a Porsche didn't insure it because he spent all the money on the car and wrecked it.

It's like winning the lottery. Research how many of them are now BK and miserable.

Those companies offering like 10-20 cents on the $ JE Wenworth something with the cheesy guy on tv.
 
Quote from vhehn:

as we learned from the crash last year annuities are not guaranteed. they are only as good as the company writing them. we dont even know if Genworth Insurance will still be viable in 19 years. expect a big haircut.
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That's true, but if you due the DD on it, a AAA, not backed my mortgage securities aint bad !:D
 
Quote from WECpoker:

Hope this post works in this section....

Hi

I received an immediate 19 year annuity that pays $9,000 per year in May of each year (next payment 2010--total of payments $171,000) written by Genworth Insurance. The Present Value in May was calculated at $113,000. ...
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If you think the present value of that annuity is $113k, you are dreaming. That assumes an annual inflation rate of only about 4.5% over the next 19 years. Any purchaser is first going to have to consider what the prevailing interest rates are likely to be over the next 19 years. Have you heard the term hyperinflation mentioned recently? These are very uncertain times. Who wants to be stuck with a fixed interest rate instrument for 19 years? Whoever does, is going to price it as if inflation is going to increase significantly over that time in order to cover their ass in the event that comes true. Secondly, the buyer has to consider the financial viability of the insurance company underwriting the annuity. Thirdly, any buyer is going to have to consider the lost opportunity of that money. In other words, what other investments could the buyer make with that money in lieu of tying it up in that annuity, and what is the likely return on those investments.
 
Quote from wareco:

If you think the present value of that annuity is $113k, you are dreaming. Any purchaser is first going to have to consider what the prevailing interest rates are going to be over the next 19 years. Have you heard the term hyperinflation mentioned recently? These are very uncertain times. Who wants to be stuck with a fixed interest rate instrument for 19 years. Whoever does, is going to price it as if inflation is going to increase significantly over that time in order to cover their ass in the event that comes true. Secondly, the buyer has to consider the financial viability of the insurance company underwriting the annuity.
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Seems I saw somewhere that Wentworth offers a lump sum of about 22% of the total cash flow over 10-years. Have to be much lower percentage for a 19-20 year.
 
Does the fact that the word "poker" is part of your user name have anything to do with why you want to sell this annuity?

Joe.
 
Hey..Just want to thank you guys for responding to my question, even if it was to jab me alittle or a lot. :D

Just trying to look at all the possibilities to get the proper cash out of this thing.

I do have some knowledge on the subject as a graduated with a BS degree in Investment Finance and have traded extensively. So I am pretty familar with present value and how it translates into actual worth/what type of offer you might receive.

Obviously you have to make it attractive that people would benefit who may wish to purchase, but balance what is giving up to much money.
 
Quote from just21:

Put it on ebay. Looks like a gap in the market for an annuity exchange.
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I thought about this just21..but couldnt find any subject to place it and it seems pretty high priced considering some of the stuff on there with bids..if you were serious :)

Will probably list it if it isnt too expensive
 
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