One of the typical hurdles to leap anytime you are getting ready to make a substantial investment is to learn as much as you can about the asset class you’re interested in. Obviously SMAs are no different. Although these unique investment opportunities have been around for many years, they have been reserved for institutional investors, who used the strategy for high yield safe-money returns. Below is an excerpt from SMASource, defining the term for us so that we can ‘come to the table’ with some basic knowledge:
A Secondary Market Annuity (or SMA) is a discounted cash flow. Secondary Market Annuities originate with the resale of an existing annuity income stream. These income streams originate from factored structured settlements, in-force period certain annuities, or a lottery prize payout.
We only offer SMAs from those insurance companies that are highly rated by Standard & Poor’s and other agencies for claims paying ability, making the Secondary Market Income Annuities we offer one of the safest forms of fixed term purchases available today. Full text here smasource.com
One little known “secret” is that secondary market annuities are available to individual investors, and have been for many years. But they remain an “underground” strategy capitalized upon by a few savvy investors. Visit our website to learn more about SMAs and sign up for a free newsletter that describes the investment in detail, and how you and your family can benefit from this super-safe-money investment.