Secondary Market Annuities have been all the rage lately because the interest rates on (SMA's) are higher than CD's, and Fixed annuities.
Here is a brief Example:
Someone is receiving a Structured Settlement from maybe a death, lottery winning, or a car accident. The beneficiary then can turn around and sell the payments. This creates a secondary market.
Companies then purchase the settlements for penny's on the dollar. They then turn around and sell them to you for 5-9% interest rate(s).
Everyone is a winner.
The seller gets their lump sum, the broker makes a commission, and the buyer gets a really good rate of return.
99% of the contracts can be bought with non-qualified or non-IRA money. Most of my clients have IRA money and that is why we now offer the purchasing a pension income stream from a retired person.
Again, this is a very brief example on how SMA's work.
If you wish to purchase or get more information on SMA's or Pensions, please feel free to contact our office.