We are trying to understand how an annuity works exactly and not able to find much info. Fiance has a 25,000 annuity that he can cash out at 59 1/2, he is 58 now. Contemplating if it is a good idea to cash it out now to pay off a 15,000 (at 10% interest) child support debt. Feedback please.

Original Post

Hi Daisey, 

I'm Director of Advanced Annuity Sales for 45+ annuity companies.  I train financial professionals every day on annuity and various insurance products.

What type of annuity is it?  Is it a Qualified or Non-Qualified annuity contract?  There might be a few options to liquidate some of the annuity without a pre-59.5 penalty.

Let me know.

Shawn

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