If you’re like most people, the word annuity probably conjures up images of elderly couples settling into their twilight years. But annuities can be a great investment for younger adults, too! There are two main types of annuities: fixed and variable. Fixed payouts their design is to provide a steady income stream for you during retirement. At the same time, variable annuities allow you to invest your money in stocks and bonds that may produce higher returns than just cash investments. Here is how to sell annuities.

1. Understand The Basic Differences

The most important thing to understand is that fixed annuities pay you a steady stream of income, while variable annuities are a way to invest your money. Although they both offer tax-deferred development, which means that you don’t have to pay taxes on the interest and gains until withdrawal, the main difference lies in how much flexibility you will have with your money.

2. Decide What You’re Looking For

To sell annuities, you’ll have to decide what funds you want to tap into. Experts from say one attractive feature of a variable annuity is that your investment choices are unlimited. You can invest in stocks, bonds or even real estate funds if you’d like. By contrast, fixed annuities are within the limit of stock funds at most insurance companies.

3. Understand Your Options

Fixed annuities can be sold as part of a tax-deferred rollover from another retirement plan into an individual retirement account at the same company or through other means. If your annuity has grown to a significant amount, you may want to sell it and move it into an IRA or Roth IRA.

4. Compare The Costs

Annuity sales are usually handled by financial planners or investment advisers who will access several offers from different financial institutions. It’s important to compare all of these costs so you’re not caught off guard by a higher expense ratio that could haunt you later on.

5. Find The Right Company

Making the right choice can ensure that you sell annuities at a competitive price. Look for companies that offer competitive interest rates, low fees, and flexible withdrawal options. Since it’s sometimes possible to withdraw up to 10 percent of your account balance without tax implications, flexibility is important when choosing an annuity provider.

6. Reestablish Your Strategy

Once you’ve sold your annuity and emptied your account, you may want to reexamine your investment strategy. If you are ready to retire, you may want to move your remaining funds into tax-deferred or Roth IRA funds. Otherwise, you may want to move the funds into a new annuity so you can continue investing.

7. Evaluate Your Options

There are several different types of annuities to choose from. Fixed and variable annuities both feature low management fees, but they offer different levels of liquidity and risk. Many people who sell annuities decide to focus on one or the other depending on their risk tolerance.

8. Consolidate Your Funds

If you have multiple annuity accounts, you may be able to combine them into one consolidated retirement program. If you are switching among accounts, it’s important to ensure that your new company offers the same level of benefits and investment options as the old one.

9. Ask The Right Questions

If you want to know more about the annuity products offered by each company or how your investment options are taxed, ask the adviser or broker you hire if they can help answer your questions. You should always be sure that the contract protects your rights as an annuitant – if an insurance company is in default or fails to honor its obligations, you may be able to recoup some money and take action against it.

10. Save Up For Your Future

If you’re selling an annuity to move it into a Roth IRA, make sure the new account has the same investment options and allows for tax-deferred withdrawal. It could mean you’ll have to make additional contributions to your original account before moving it into a Roth.

11. Keep Informed

You can keep up with annuity taxes by seeing whether or not any dividends or withdrawals have been made from the account that you’re selling. Additionally, if there are other assets in your estate, be sure to include all investments in the sale agreement to receive the full amount of money you should receive after death.

12. Take Advantage of Rollovers

If you have a healthy, but not massive, retirement account and want to move it to another company, you may be able to do so through a rollover.

13. Consider Selling Online

Selling annuities online can help you increase your income if you don’t want to sell your whole account at once. The completion of Online sales is in as little as 15 minutes, and some sites allow you to use credit cards for payment authorization. Always be sure to run the transaction through a secure online payment service.

Selling annuities is a way to take advantage of tax-deferred growth, but it can be very challenging. The best advice is to take the time to understand your choices and learn as much as you can about the annuity industry. There are many different types of accounts and variables within each one, so do your research ahead of time.