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

If you don't need the liquidity don't sell. And if you do, price it to move ... around $70,000 (might have to go as low as $65,000) should entice a private buyer but a pro will bid $50,000 at most.

It is always tempting to think some guy will simply pay more out of ignorance but that is more often the case at lower price points. That's why the $1 and not the $10 items are at the register -- impulse buys.
 
Quote from WECpoker:

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.
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Sorry, but wareco is right. Your annuity is not worth even $100k by a longshot. Genworth is not trustworthy, and you have already confirmed this by checking whether they will buy back the annuity. The fact that they have no interest whatsoever is a clear sign that this annuity is high risk.
Then you can price in the fact that the USD is devaluing and has no real future. Only an idiot would want to sit in a USD annuity right now.

I doubt any investor would buy this at a NPV with a lower than 10% discount rate. If you get offered over $70k for this, take it. Realistically, it's worth about $55k.
 
Just want to thank the responders again...all very insightful and intelligent posts.

I guess I can only reason, if someone is looking to buy an annuity of this type, they will have to pay somewhere around 113,000 if they buy direct from insurance company...so why not buy from me at 90K and we both win:)
 
Annuities are not bought they are sold. There is an insurance or other salesman sitting across from them who has spent the time to build a relationship (or what people are fool enough to believe is a relationship) and he hands them a pen.

That adds 50 or 60K in value to the the transaction. That's the price well executed sales practices add when he pretends to root for the same team and like the same flavor ice cream as the customer does.

Come into the real world. It is actually easier to live in and certainly less costly.


Quote from WECpoker:

Just want to thank the responders again...all very insightful and intelligent posts.

I guess I can only reason, if someone is looking to buy an annuity of this type, they will have to pay somewhere around 113,000 if they buy direct from insurance company...so why not buy from me at 90K and we both win:)
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If you just need some cash, you could borrow about $86k with payments around $735/mo ($8800/Yr) for 19 years. Assumes an 8% interest.
 
Quote from WECpoker:

Just want to thank the responders again...all very insightful and intelligent posts.

I guess I can only reason, if someone is looking to buy an annuity of this type, they will have to pay somewhere around 113,000 if they buy direct from insurance company...so why not buy from me at 90K and we both win:)
More...

If you have marginable securities, put them in an account at Interactive Brokers and borrow against them. Then keep the annuity and collect $9K per year. Right now you'll pay less than 2% per year to borrow at IB. Plus you'll only have to borrow money as you need it.
 
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