Who Should Consider Secondary Market Annuities:
Secondary Market Annuities are perfect for investors seeing a higher yield alternative to their fixed income investments. Investors often choose fixed investments such as CD’s, Bonds and Fixed Annuities, and now SMA’s are available to offer a higher yield than these comparable options.
Investors seeking safety, predictability, and a complete lack of volatility should investigate Secondary Market Annuities.
Who Should NOT Consider Secondary Market Annuities:
Secondary Market Annuities are relatively il-liquid investments. Investors who may need access to the funds they are considering investing in SMA’s should be aware that there are no free withdrawals or termination options. While our unique purchase process allows for liquidity and transfer, there may not be a ready and profitable market when you choose to transfer the payments.
Also, if you are specifically seeking a lifetime income stream that you can not outlive, then SMA’s alone may not be right for you. SMA’s are fixed term investments.
What we typically recommend is to address lifetime income and longevity risk first, with deferred Lifetime Income Guarantee annuities that typically start paying at age 85, then utilize remaining assets in SMA’s to produce guaranteed income in the years prior to the LIG contract commencement. This works well for investors with a long life expectancy.
Lifetime income is important… but it may not be important for you. You may have sufficient other assets or be comfortable carrying your own longevity risk.