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

Discussion in 'Classifieds' started by WECpoker, Sep 18, 2009.

  1. WECpoker

    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.
     
  2. If anyone has any ideas that I have overlooked I would appreciate it!!!!
    ----------------

    The present value of the annuity has consumed you. Go get a job, an education, a life. This is chump change in the grand scheme of things but 9k a year of free money for 19 years is delightful.

    Good luck.
     
  3. Agree. Do something delightful for yourself that you wouldn't otherwise do... like lease a BMW 750i, or something.

    Or, you could do something delightful for somebody else... If you can't think of anything or anybody, let me suggest "The Max Fund".. a no-kill animal shelter. They have a web site... :D :D
     
  4. just21

    just21

    Put it on ebay. Looks like a gap in the market for an annuity exchange.
     
  5. Owned and operated by Nick Scataphagos? :D
     
  6. What "bids" have you received to make you feel/believe that you are being ripped off? :confused:
     
  7. I bid 20K for that annuity.
     
  8. The present value is, of course, totally dependent on the inputs used to calculate the figure. Don't get hung up on that calculation because the buyer -- the guy who ACTUALLY writes the check -- will insist on a bigger haircut than seems fair to the seller. Yet it seems very fair to the buyer.

    The place to start is Genworth. Ask them to bid on what in effect is their own paper. If they low ball you beyond reason -- move on. Very few negotiations work when the initial range is unreasonable. If they are only 10% or even 15% lower than you need then negotiate.

    But if they decline to bid then ask them who you should talk to. They get this question ALL THE TIME.

    If you are going to go the classified route I would try the WSJ or Barrons. The average guy will talk you to death. Only a guy that understands that a X% return from a AA or whatever credit is a strong deal can close. The others think that they can steal it.

    If you need the money be reasonable on what you will take. Remember the buyer has what you need and you own one of many possibilities for him to buy. Annuities are always a buyers market.



     
  9. 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.
     
  10. zdreg

    zdreg

    nazzdack


    Registered: Jul 2004
    Posts: 4756


    09-18-09 12:51 PM

    Quote from WECpoker:
    -----The Present Value in May was calculated at $113,000.
    -----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


    What "bids" have you received to make you feel/believe that you are being ripped off?
    mr. nazdak see below

     
    #10     Sep 18, 2009