Certificates of Deposits are earning 1.75% on a good day if you lock your money away for 5 years, Savings accounts earn you less than 1%. However, what you really want is 8% return on your investment with less volatility than the stock market. So you start looking at this secondary market of annuities. But what does that mean, what are my guarantees, where do I start, who is on my side?

Secondary Market Investments

Investing in primary market annuities can be safe and earn you a modest return, but you have heard rumors of this mythical beast ” the secondary market annuity.” What is it how do I get it, and more importantly how do I make money off of it?

Secondary market investments are simply put, buying a pre-existing annuity at a present day discounted value. These future payment streams come in a variety of payment options, and if you have some flexibility they might be just what you are looking for.

You have an allocated amount of funds, and you have a basic outline of what you would like to see a return payment stream. Now the IRS has already set the present-day value of future money, allow for some expenses like legal fees, and basic costs. Now you are ready to invest in a portfolio of future payment streams.

Typically, people are selling monthly and lump sum payments anywhere from 1 year to 20 years out, the further out the payment the better the return. Hypothetically you put $100,000 up to invest and in your portfolio, you want payments starting in 5 years and going out no further than 18 years ( your granddaughter will need college money then), and you want monthly payments of $5000 and a couple of lump-sum payments, your portfolio comes back with 10 different annuities equaling $4000 in monthly payments and 8 lump-sum payments totaling $426,000 over 13 years. That’s the concept, of course, the numbers are made up because I don’t know exactly what your guidelines are and how patient you are. So I’m not going to sit here and telling you these are hard fast numbers because, in reality, the only thing I can guarantee you is the portfolio will be made of monthly payments, guaranteed by court order, backed by insurance companies and tailored to you.

How you go about it and with whom is the deciding factor. I’m just giving an insight to what you can do. I’m not your financial planner and don’t claim to be a commodity’s broker. That’s not what we do, other companies do, though, they are easy enough to find if you do your due diligence. Which what every investor should be doing, along with hiring an outside firm to review what someone else is selling. My grandfather always told me a fool, and his money are soon departed.

There are more intricate details than I can express here; our goal is to break it down into more palatable terms and examples.

Secondary market investments – CDs earn 1.75% what you really want is 8% return on your investment with less volatility than the stock market.CALL US TOLL FREE (800) 200 – 4384 Eugene Ahtirski Structured Settlement Attorney