Are Assured Annuity/Secondary Market Annuity Payments Stable?

Secondary market payment rights (in force annuity payments) can be excellent investments, partially because of the stability of the investment. These payment obligations come from annuity issuers that usually carry an A to AAA rating from S&P, which means that investors can have confidence in the products. Conservative buyers who want a regular source of income are oftentimes attracted to the secondary annuity market and find them to be excellent investments.

Many of the people who buy annuities are also attracted by the interest rates. With interest rates oftentimes offering relatively favorable returns, buyers can get a higher yield out of annuities then they can out of the other investment options on the market. This makes them an excellent addition to a portfolio for investors want to make certain that they are putting their money somewhere that is sensible to trust and that comes with some guarantee of reliability for the product.

The Reliability of Terms

In most cases, an annuity will be ordered to be paid out over a term of from 5 to 30 years. This depends upon the size of the annuity and the specific circumstances under which the annuity was awarded.

Many of these annuities payment rights (in-force annuities) come from personal injury claims and are being paid out by insurance companies. This makes them very reliable sources of income for the people who win them in claims but, for some of those people, the payment arrangement is not favorable and they want to switch their annuity to one that pays out more quickly. They sell these annuity payments off so that they can get the money they want or need right away. The buyer, in return, gets a great investment.

Better for Some

Long-term payouts on annuities are better for some individuals than others. Some investors like the stability of the payments and the fact that, in some cases, the payments may not be subject to tax until the full amount is paid out.

Annuities, over time, can contribute a great deal to the value of an IRA or your portfolio in general. This agreement is becoming very popular among people who are awarded annuities, as well, as the arrangement of having the payments made over the long term may not work out for them, even though this may have seemed the case at first. For such individuals, the secondary annuity market provides a way for them to get the finances they need while creating a great opportunity for other buyers.

You should consult with your financial advisor to find out if the Assured Annuity is right for you.

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