What has the Highest Yield, Lowest Risk Opportunity?

Posted on May 21, 2014

Did you know you can earn 4-7% from investing in pre-owned annuities, structured settlements, and lottery winnings? Many people don’t realize that structured funding purchases are:

  • 100% secured in your name
  • Transferred to you by court ordered assignment
  • Secured by State Lottery Commission or highly-rated insurance companies
  • Terms of 2-50 years

Here’s how it works. Structured settlement and lottery annuities are sold by annuitants at a discount in exchange for a lump sum payment. These are then offered as annuities at a fixed rate of return to investors. The annuitant’s rights to receive payments are transferred to a purchaser, and payments are then made directly to the purchaser by a US-based insurance company with a credit rating that is generally rated AAA to A by major credit rating agencies.

There are three primary payment streams:

  • Structured Settlement – this is an annuity awarded to a plaintiff from a personal injury settlement that is paid out over a set period of time.
  • Annuity – This is a contract between an individual and an insurance company that is designed to meet both short and long-term investment goals. If you are the individual you would make a large lump-sum payment or a series of smaller payments to the insurance company. In return, the insurer agrees to make periodic payments to you.
  • Lottery Annuity – This is a pre-determined amount of regular payments received by a lottery winner that is typically paid on a monthly or annual basis over a period of time.

As an purchaser you can have peace of mind that your money is safe when you purchase these various types of annuities because the high rated insurance companies that handle these are able to weather financial and economic crisis due to their solid balance sheets.

Maybe you are curious about the risks at this point. It is your decision once you have all the knowledge you need whether this is a good fit for your financial goals. The quality and safety of these cash flows are directly related to the financial health of the insurance company issuing them.  There is always risk and it is your decision if it is a risk you are willing to take.

Annuities give pruchasers an above average rate of return on a guaranteed basis. As an investor you can expect a return higher than what you would get from a comparable treasury bill. I view these annuities as one of the safest forms of investments available.

These are becoming much sought after assets among private investors, Wall Street firms, and experts in the field. They provide a limited opportunity for sophisticated investors to invest in extremely low risk, fixed-return annuities at superior rates of interest.

Interested in learning more and seeing if this is an option that would fit what you are looking to accomplish with your financial goals?  I would be happy to go over the options with you and how this all works in more details so you have the education you need to make this decision for you and your family.


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