One of the least known financial instruments making the rounds in the asset protection circle is the Pre-Owned Annuity (otherwise known as In Force Investment).

I know that sometimes people get nervous about annuities but I have to tell you that pre owned annuities are different than traditional ones. Let me explain a bit.

Let’s assume that someone won the lottery or a structured settlement payout due to a judgment in a court of law. They are awarded $5000 per month for the duration of their life. That person may be completely comfortable with that payment coming in on a consistent basis, but somewhere down the line they might find it financially beneficial to seek out a lump sum of cash instead to help with some immediate money issues. Maybe they want to build their dream house or need to pay off bills. Whatever the reason, this person is willing to give up some future gain for that lump sum of cash now. Basically this means that they are offering up their current income at a huge discount.

The secondary market opportunity is a safe place to put your funds as it is similar to a CD, Money Market or Treasury but gets returns north of 5%. If the new purchase proceeds, the case will go before a judge and title will transfer from the original owner to the new owner. Than an acknowledgement letter from the funding source will reflect the new owner of those payments.

All industries adapt to changing times and the financial industry is no different. If you are looking for a way to invest that is safer and has a high rate of return this may be the opportunity for you.

Can’t hurt to look into it…just keep an open mind.