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Intro: What Are Secondary Market Annuities?

In this video, I’ll give you a quick understanding of just exactly what these higher yield, fixed income alternative investments are and how they benefit you, so you can quickly determine if these are something you want to explore further, which you can then do in the next videos.

    • What are Secondary Market Annuities 
      1. Period certain, guaranteed payment streams
      2. Come from structured settlement annuities
      3. Right to receive payments changes hands, not annuity itself
      4. State and federally regulated transfer process adhering to IRS statutes
      5. Payments assigned by court order into a transaction specific dedicated escrow account at the GoldStar trust, the federally regulated bank and trust company payment servicer 
        1. That payment servicing account is transferred to you
        2. Payment servicer handles splits and allocations of payments buyers 
        3. You can re-assign your payment stream to your heirs or a third party directly with the payment servicer- not restricted by DCF or subject to any transfer issues
        4. Can be sold- DCF routinely buys back from customers or heirs, prices depend on current market interest rates however.
      6. Can be acquired by buyers of any age, in any state, and with qualified and non qualified funds, in the name of an entity, a trust, or individually owned.
      7. As noted above, payments can be split/ allocated to suit your needs
        1. Examples 
          1. A portion of a larger case to suit your available funds. 
            1. A $50,000 portion of a larger priced lump sum
            2. A purchase price calculated to achieve $1000/ month out of a larger monthly income stream
            3. An income stream that starts at a specified date in the future
          2. A combination of multiple streams to achieve a desired portfolio outcome
            1. Income and lump sum 
              1. capital replacement
              2. Planned capital events over time
              3. Portfolio stability and flexibility
            2. Staggered lumps over time
              1. College planning
              2. Life insurance premium payments
              3. Property maintenance and capital reserves 
              4. Long term stable fixed income without specific monthly income needs
            3. Rising income- 
              1. Layer in step ups in future
              2. Combine multiple streams for larger monthly income
    • Pros and Cons:
      1. Not for Everyone
        1. You need to be comfortable making your own decisions about alternative investments 
      2. Not well known
        1. Small market, under $1B/ year
      3. Benefits
        1. Higher Yield
        2. Lower Price
        3. Lower Risks than managed portfolios and many other options
    • Next Videos
      1. Why It’s Better
      2. How Others Use It
        1. Case Studies
      3. How to Choose
        1. Inventory page, terminology, etc
      4. Purchase Process 
        1. Documents and Timelines