10 Facts to Know about Secondary Market Annuities
1. Secondary Market IncomeAnnuities (SMIA) can provide above average returns for the fixed
income portion of a balanced portfolio compared to investments of a similar risk.
2. SMIAs can be purchased with Pre-tax or After-tax funds.
3. SMIA payments are contractually promised, and are not projections. The stream of payments
purchased is calculated to provide the interest rate stated over the term of the payments
based on the purchase price paid.
4. SMIAs have no hidden administrative fees.
5. A SMIA will provide payments, according to the purchase agreement, to you and/or your heirs.
6. SMIA transactions are not widely known to the general public nor are they easily accessible
to individual buyers.
7. All SMIAs are scrutinized by a court of law and require court approval.
8. Most often, the payment stream is paid directly to the Buyer by a U.S. –Based Insurance
Company with a claims paying ability rating that is generally AAA to A rated by Standard and
Poor’s or the State Lottery Commission.
9. SMIAs are paid out in U.S. Dollars. Foreign Buyers may be subject to currency exchange risk
10. Every Buyer’s situation is unique. Before making any investment decision, many factors should