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.
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.