Most people want to invest but they don’t want to lose a lot.  They need security and a high rate of return.  One investment that can meet these objectives is a pre-owned annuity.

Many people own the rights to annuities that guarantee monthly income, sometimes for terms of up to 50 years. Some of these owners are willing to sell the legal right to their structured monthly payments, at a discount, for a lump-sum payment.  This often occurs when the owner of the annuity needs money quickly for something such as a house down payment or to pay off medical bills or something similar.

A typical seller is somebody who was injured in an accident and received an annuity settlement from an insurance company. That person may prefer to have a large lump sum. To get that lump sum, they must be willing to give a discount to the buyer of the annuity they own.

When buying a Previously-Owned Annuity™, keep in mind that the original annuity terms (interest rate, payment date and payment amount) remain fixed for the duration of the annuity.

So, in order to structure a reasonable offer, one needs to take into consideration the balance of the future payments, the established interest rate associated with the annuity, and the number of payments remaining.

This information will determine the current value of the annuity so that it can be sold.

Upon selling the annuity, the original owner receives a lump-sum payment, the intermediary (person helping to do the sale and ensuring everything goes as it should) receives a fee, and the new owner receives their safe investment with a high rate of return for the remaining term of the annuity.

These annuities are paid by major insurance companies and other organizations with excellent credit ratings.

Generally speaking, the longer the duration of the annuity term, the higher the rate of return.

If you are interested in purchasing a previously owned annuity, please know that only a limited number of offers are made each week, and attractive offerings do not stay on the market very long.

If you are interested in learning more, we can help you with this process at Bulbrook/Drislane.

Now, there are a couple other things to keep in mind when deciding if this is a good fit for what you are looking for.

• This kind of annuity is not a liquid investment.
• Interest rates may increase in the future and you cannot renegotiate.
• It is advisable to establish ownership in a way so that it will not be probate property so that income from the annuity will be continuous for your beneficiaries.

Here at Bulbrook/Drislane we work with pre-owned annuities all the time and they are a specialty of ours.  We believe they are an attractive alternative for investors willing to make a long-term or intermediate-term investment.

We would love to chat with you about how we can help you determine what investment opportunity is right for your family.  Don’t hesitate to contact us to set up that time to talk!

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John Bulbrook, Bulbrook Drislane – IN-FORCE ™ Secondary Market, Finance and Investments, Secondary Market, Annuities, Fixed Term Annuities, Life Insurance, Structured Settlements, Previously Owned Annuities, Pre Owned Annuities, Immediate Annuities, Factored Structured, Settlement Secondary Market Annuity, Aftermarket annuity, Inforce fixed term annuities, Inforce fixed term annuity, Inforce annuity, Deferred Variable Annuity, Inherited Annuity, Equity Annuities, Straight Life Annuity, Non Qualified Annuity, Mutual Fund Settlement, 20 Year Annuity, 10 Year Annuity, 5 Year Annuity – Click here for his Facebook,Twitter, LinkedIn, Google Plus