Secondary Market Annuities are in force payment streams from top rated insurance carriers. These payments are offered for sale by individuals, and new owners enjoy all the safety of a period certain annuity from a top-tier carrier, yet benefit by yields 1-4% higher than comparable safe money options.
According to Nathaniel M. Pulsifer, one of the principals at SMASource, “Advisors are jumping in to the SMA marketplace as yields on traditional annuity products continue to remain low. Feedback from advisors on our revolutionary new process has been great too. We’ve addressed the shortcomings of the marketplace such as liquidity and transactional delays and can now close cases in as little as 24 hours.”
Financial advisors and insurance professionals know that annuities form a critical floor of guarantee income for investors and retirees. But for several years, with low interest rates, guaranteed income annuities have not offered competitive yields. Now, advisors have a new safe-money tool with higher yields to work with.
Although it is a small market in the larger financial landscape, Secondary Market Annuities deserve a place in more main stream planning scenarios as they offer significant benefits to advisors and their clients. Savvy advisors are picking Secondary Market Annuities in lieu of other period certain assets as the yield, credit quality, and total return all make for a superior offering for their clients.