Buying a STRUCTERED SETTLEMENT cash flow

[LostDollar]

The secondary annuity market IS the structured settlements market.

They're just called that but they aren't registered as actual annuities even though there is a carrier involved.

(it's been a couple of months since there has been any response to op so I didn't think I would be interrupting any information flow to him by asking a question of my own.)

I sometimes look at the secondary market annuity list on a website allen posted a long time back. (I'm looking at the smaller amounts - say $30K-$50K,)

Answers to questions in the SMA section of the website suggest there are challenges to the transfer of ownership of those if the purchaser dies before the payouts are complete.

I'm not sure what specific questions to ask. I am just trying to understand the ownership of one of those a bit better. A transfer of ownership would have to happen if I bought one of those.

A secondary question going along with that, do you think there would be a sufficient return premium for an SMA over the "regular annuities" you mentioned in an earlier post to make it worth the challenges of buying the SMA (at least at the levels I am talking about)?

Thanks.

 

[DHK]

My podcast co-host and I did a podcast on this topic. Reach out to me and we can see if these are fit or not:

 

[LostDollar]

My podcast co-host and I did a podcast on this topic. Reach out to me and we can see if these are fit or not:

Check your website messages.

 

[LostDollar]

My podcast co-host and I did a podcast on this topic. Reach out to me and we can see if these are fit or not:

I think JWROS answers my "transfer on death" question. The website I referred to earlier left me with the impression that I would have to establish some kind of trust with Goldstar or elsewhere to support a purchase with my need. It sounds like the real solution (at least for my situation) may be much more simple

My need is exactly like an example quoted in the video only with a much, much smaller potential purchase price.

The comment about being able to "carve out" tailored purchase amounts was also helpful. It provides me with a possible way in which a small asset base person might be able to deal with RMD creep in the sense of preserving some part of the distributions as a basis for more future income. Try to save a couple of years of distributions and then see if those people can create an SMA purchase opportunity for me with my available funds.

Thanks for setting up that podcast. It helped to expand my knowledge base on something I started wondering about several months ago.

 

[Allen Trent]

e person might be able to deal with RMD creep in the sense of preserving some part of the distri

I would doubt this will make financial sense for you to do this with a small qualified account.

While I have zero experience with SMA, you for sure would have to set up a self directed IRA to make investments & that alone has fees & cost to administer. I would be shocked if you can pick up better interest rates in the SMA that would cover the extra costs of self directed IRA & then have the added ongoing administration of RMDs, etc.

Again, I have no experience, but this is where my mind goes on a small qualified account investing in SMA

 

[LostDollar]

I would doubt this will make financial sense for you to do this with a small qualified account.

While I have zero experience with SMA, you for sure would have to set up a self directed IRA to make investments & that alone has fees & cost to administer. I would be shocked if you can pick up better interest rates in the SMA that would cover the extra costs of self directed IRA & then have the added ongoing administration of RMDs, etc.

Again, I have no experience, but this is where my mind goes on a small qualified account investing in SMA

(Caveat, not an agent. )

Thank you for your comments.

When DHK asked about average transaction size during the video, there was a comment made about IRA's and using the SMA to clear out small IRA remainder balances. There was no discussion about actual dollar amounts DCF saw there or of the supplementary costs that might be involved with Goldstar to accomplish that. I may have that issue coming up in the future, but it is not a concern for me at this time.

With my finances I am basically following a sequence mentioned in the podcast. I have purchased FIAs with income riders. (Those do happen to be Roth funded.) (I was also able to follow your advice about diversification by splitting my purchase in half with two different carriers.) I am looking to purchase an SMA to supplement those income rider products, but that purchase will be with after tax funds.

And here's the stunning (to me) thing. The contract splitting sales approach of the podcast presenter's company will allow me to do that with the dollars I have.