Trying To Sell 19 Year Annuity At Discount...any Ideas?
- Thread starter WECpoker
- Start date
Quote from dandxg:
That's true, but if you due the DD on it, a AAA, not backed my mortgage securities aint bad !
Yeah...Genworth had some issues from underlying Mortgage Loans I think it was (well some issue anyway that I researched at the time and memory is fading on it), that drove stock to $1+, but they seemed to explain it well at the time, and they are spin off of General Electric..so I dont think they would go down. They were a great stock play in Nov, March. Stock closed at $13 today so I like them. I also invested some in them late 2008 early 2009...I think they will be around.
All good points..of course this is no US Treasury..but still you are looking at 30 YEAR rates at 4.17%. While there are certainly other factors at work- the professionals arent buying into your theory 100% yet or these rates would be much higher already. It is obvious that you may have to watch for higher rates..but is by no means a certainty or foregone conclusion.
Google "note buyers", find a board and post all the details of your annuity and let people bid for your note, or put a fixed price in and see what kind of offers you get.
I would personally be surprised if you got offered more than 65k from a professional.
But if i were you, i would put an ad in the paper. (first off, I did a simple calculation and im guessing your interest rate on that annuity is a little over 5% right?) If i was looking to sell it quick, I would try to sell it for $74,250. That gives the buyer a nice 12% interest rate on the annuity. I'm sure you could try a better price though as you might get an inexperienced person to buy it. For example $82,800 would give them a 10% return, $93,350 would give 8% and so on.
The professional note buyers are trying to get an interest rate of usually a min of 15% to 50% interest. Thats why the 30k-50k offers (which is a 21%-43% interest rate)
I would personally be surprised if you got offered more than 65k from a professional.
But if i were you, i would put an ad in the paper. (first off, I did a simple calculation and im guessing your interest rate on that annuity is a little over 5% right?) If i was looking to sell it quick, I would try to sell it for $74,250. That gives the buyer a nice 12% interest rate on the annuity. I'm sure you could try a better price though as you might get an inexperienced person to buy it. For example $82,800 would give them a 10% return, $93,350 would give 8% and so on.
The professional note buyers are trying to get an interest rate of usually a min of 15% to 50% interest. Thats why the 30k-50k offers (which is a 21%-43% interest rate)