Secondary Market Annuities In Corporate Finance

Nathaniel — Mon, 20 Jun 2011 17:31:46 +0000

The secondary market for annuities is traditionally the secret domain of large corporations. With annual distribution of around $700 million it is one of the smaller financial offerings available. A recent press release offers a glimpse of how financial institutions use these secondary deals to profit.

This press release talks about how J.G. Wentworth, one of the biggest players in the industry, just completed a securitization of $265 Million of structured settlements. Wentworth buys various financial instruments like settlements, annuities, and financial obligations through aggressive direct-to-consumer advertising, offering cash now for future payments. You may have heard their catchy radio and TV advertising.

J.G. Wentworth buys these contracts, packages them into a fixed income portfolio, and resells them to institutional investors. Of course, they pocket the the spread and make a good business out of doing it. Read the release here.

The key to this is that factoring companies like J.G. Wentworth create high-quality fixed income portfolios that are in high demand from banks, corporations… and insurance companies. An insurance company can conceivably buy a securitized portfolio which may in part be comprised of its own obligations!

In this we can see the essence of the secondary market- they are such ultra safe and secure financial instruments that they are in demand by the most stable and risk averse institutions. Secondary market annuities thus may indirectly contribute to the safety and yield of primary market annuities.

Ultra Safe, Guaranteed Cash Flows:

Wentworth does on an institutional scale exactly as we recommend to our clients: they assemble many Secondary Market Annuities to create a desired stream of cash flow, but one that is of higher yield than what is available on the open market. Bundled together, these financial instruments become smooth payment streams. Wentworth’s buyers have the same goals as you: they want ultra-safe, guaranteed returns to add stability to their investment portfolio.

Stefano Sola, J.G. Wentworth Chief Investment Officer phrases it like this:

“The driver behind this decision was the underlying investor appetite and demand for long term access to strong, consistent and predictable cash flows”

Does this sound familiar? Frequent readers of this site will realize that’s exactly the benefit I’ve emphasized all along. A strong, consistent, and predictable cash flow is precisely what individual investors should seek for guaranteed retirement income. Do you believe me yet?

Consider this: Would you like to get a 3.5% fixed annuity from a company like MetLife whose assets may include this securitized portfolio from J.G. Wentworth, or would you rather get the SAME QUALITY UNDERLYING ASSET yielding 6.5% from me? Seems like an easy decision.

This Market Is Open To You…For A Limited Time:

As you may be aware, I have access to excellent Secondary Market Annuities for individuals. Though they are available to individual consumers currently, this has not traditionally been the case, nor may this market stay open to individuals for long. While this limited opportunity is available I suggest you take a closer look before the demand from banks comes back, and J.G. Wentworth and others absorb all available inventory and shut off the valve for good.

All the details of these transactions are available for your due diligence before entering the market. Once you reserve a specific contract you can investigate all the underlying facts and make your own independent verification. Take advantage of this excellent opportunity while you can.

This is an exceptional opportunity to increase the yield substantially on the safe portion of your portfolio. Take the opportunity now to get on the institutional side of a financial transaction for a change!

Have a great week!

Bryan J. Anderson

800.438.5121

bryan@annuitystraighttalk.com

Read The Post Here: Secondary Market Annuities In Corporate Finance

What is a Guaranteed Annuity?

Nathaniel — Fri, 15 May 2009 10:11:33 +0000

When you are looking for a guaranteed lifetime income in retirement, safety and consistency should be your main concern. In these days of economic distress, employer pensions are of questionable stability and most other investments carry too much risk. It's no wonder, then, that quality guaranteed annuities from highly rated insurance companies are rising in popularity.

One of the most important things you can ask for in retirement is a consistent and secure monthly income that you can rely on. A guaranteed annuity can provide you with that consistent monthly income year after year in your retirement. If you have a retirement account, you will need to decide what you will do with the funds as retirement nears.

Typically, the company handling the funds will contact you trying to sell you an annuity. Basically, you are trading in the funds in your retirement account for steady income in retirement. You are not required to convert your retirement to an annuity with the same company who holds the retirement fund. This is a common misconception and can cost thousands of dollars in retirement. You should never take the first deal being offered you, and there are plenty of other products on the market to choose from.

So while a guaranteed annuity may be just the right thing at this point in your retirement planning, it's critically important to pick the Right guaranteed annuity… AnnuitystraightTalk can help with that decision. Your options will include fixed annuities, variable annuities, and immediate annuities. All have benefits and drawbacks that you should be aware of, but all, in their own way, offer some level of guarantee.

The term 'Guaranteed Annuity' therefore is often misunderstood- it's not a type of annuity, but rather, is a characteristic of most annuities. The length of guarantee, the rate of return guarantee, the income guarantee— all these are variables that you pick between to find the best combination of safety, flexibility, and profitability for your situation. It might take a little work, and Annuity StraightTalk can help, but finding Guaranteed Lifetime Income is worth the effort!

Please, become a member of AnnuityStraightTalk and get a copy of The Annuity Report.

Read The Post Here: What is a Guaranteed Annuity?

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Secondary Market Annuities In Corporate Finance

Ultra Safe, Guaranteed Cash Flows:

This Market Is Open To You…For A Limited Time:

What is a Guaranteed Annuity?