One of the hallmarks of a good portfolio is that it has more than one type of income source included within it. For instance, the gains made on stock investments, metal investments and so forth are one type of income. An area of income that people often times overlook is fixed income. A good portfolio should have some fixed income assets in it. The most obvious one that most people have will be their Social Security payments, but a good portfolio will also contain other fixed income assets that can make life a lot easier for people.
Assured Annuities
Purchasing Assured Annuities is one of the ways to get a fixed income asset into a portfolio that is generally considered to be stable, reliable and financially speaking, a good purchase. When somebody obtains?a structured settlement annuity – usually through a personal injury claim – they can opt to sell off their annuity’s payment rights for a lump sum payment. The seller of the payment rights, called the annuitant, will have to verify that the financial instrument they want to sell is valid and that they have the right to do so. Once this is established, they can go through the court system to sell off the annuity’s payment rights. Assured Annuity handles this process for both sellers and buyers so that they do not have to deal with it.
The Assured Annuity can be purchased at a fixed term or a flexible term. There are good reasons to consider both options, and many people find that the interest payouts from these annuities are quite substantial. Over time, the Assured Annuity can potentially add a great deal to a portfolio and, because it is on a fixed payment schedule, it can be a reliable and solid source of income that can endure for many years.
Timeframe
Most Assured Annuities are scheduled to pay out in full between 5 and 30 years after they are issued. Most fall within a more restricted range, with payouts coming between five and 20 years, in the majority of cases. If you purchase one of these investments, depending upon what the seller is willing to work with, an interest rate added to the amount of the payment ensures that, over the timeframe of payment, you end up making money.
In addition to a portfolio really having a place for a fixed income asset, it will always have a place for a stable asset. With a fixed term on an annuity, buyers should have the peace of mind that comes with knowing that they have a source of income that is fixed?and that will render a profit over time.
Most of these annuities are paid out by annuity issuers?with between a AAA and A rating with Standard & Poor’s. This makes them serious additions to any portfolio for any investor, particularly those who want to make certain that they are in good shape for retirement and who want to make certain that the fixed income payments they get are enough to handle their monthly expenses and a bit beyond, in many cases.