One of the more notable opportunities in this week's secondary market specials is the ability to get a 6% IRR on payment right to a $50,000 single deferred lump sum payment to be paid in 9 years and 8 months , backed by a AAA rated annuity issued by USAA Life Insurance Company. The deal would require $28,783 now.
At the time of publication, the yield was better than the 10 year Treasury Bond issued by 5 major industrialized nations
Australia 5.22%
UK 3.35%
USA 2.95%
Germany 2.65%
Japan 1.10%
Source: Bloomberg.com
Employing a Secondary Market Ladder
If you had around $92,000 in total and wanted to employ a laddering strategy you could hitch onto the above, another 6% IRR deal over about 11 years, this time backed by structured settlement payment rights from Allstate Life Insurance Company. Approximately $63,597 down today would get you a guaranteed lump sum of $120,000 August 24, 2021.
Notes:
- Purchases of structured settlement payment rights require Court approval to assure that the transfer of ownership in the payment rights is in the best interest of the seller.
- Structured settlement payment rights represent an outstanding opportunity for retirement plans, especially Roth IRAs, and may be suitable for plaintiffs as part of an overall settlement planning solution. Bear in mind these are factored structured settlement payment streams, NOT annuities and carry transactional risks that are not present with annuities.
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