CDs, Mutual Funds, Annuities vs. Secondary Annuities (Part 7)
Comparing the Certificate of Deposits, Mutual Funds and Stock Markets, Annuities to Secondary Annuities
Reviewing Certificate of Deposits, Mutual Funds, Stocks, Annuties and Secondary Annuities for Retirement Planning
Pros & Cons of CDs, Mutual Funds, Annuities and Secondary Annuities
CD (Certificate of Deposits): Retirement Investment Option
Mutual Funds & Stocks: Retirement Investment Option
Annuity: Retirement Investment Option
Secondary Annuities: Retirement Investment Option
Secondary annuities are pre-owned annuities. They have been owned by someone else who won the lottery, a lawsuit or a settlement. Secondary annuities are assigned by a court and backed by large reliable insurance companies. The certified pre-owned low mileage luxury sports car of the group. They can be fun to own as there are a myriad of different ones with different payouts and prices and time limits. All kinds of accessories are available: lump sum payouts, monthly payouts, yearly payouts and combinations of all of the above. Secondary annuities are also reliable because they are backed by insurance companies, certified by a court and they won’t change. Whatever payout you purchased is what you are guaranteed to receive.
To get back to the car analogy, the first person that owned the annuity took the big depreciation. Now they want to get the cash for their annuity. They have to sell their rights to all of the future payouts at a discount so that they can get that lump sum of money. To do that, they have to sell it at a used car discount price. That discount price is passed on to the secondary buyer.
How much of a discounted price? Well, secondary annuities can pay out the equivalent of 5-10% interest. That sure beats the CDs and the brand new annuities. The secondary annuity luxury sports retirement investment may even beat the mutual funds and stocks in any given year, with one exception: secondary annuities won’t break down.
Year after year, you’ll get what you paid for backed by the insurance company and the courts. That’s like having all maintenance paid for throughout the life of the annuity. Hey, even if one owns a sports car or two, they usually have a more comfortable and reliable car to get them around town. The secondary annuity will get you to and through retirement with a great rate, reliably and consistently. Sometimes a new-to-you car makes the most financial sense. With retirement, the new-to-you annuity offers the best of all makes, models and styles.