Buying SMAs

Savvy investors have found great yields in the safe alternatives of SMAs because of their unique discounted payment structure. These structured settlement investments are starting to become a “go-to” move for astute investors. Secondary Market Annuities provide and excellent vehicle to reduce market exposure and help to prop up a portfolio with superior yields. See also our that answers the question of are SMAs safe? Nathaniel Pulsifer details the typical beginning of a deal in this excerpt below: a typical secondary market structured settlement transaction, a seller approaches an attorney, a factoring company, or other entity with a specific payment stream to sell.  The originator agrees on a discounted price for the payments and commences the work necessary to transfer the payments to their own account or to a new owner.

At this point, these diverse sources of origination offer their payment streams for sale.  If it is a good payment, from a good company, our wholesale vendor will buy it and provide the name of its business trust and address of a payment servicer which is applied to the various transfer documents.

After you select a case to buy, our unique and revised procedure requests minimal documentation from you.  We have eliminated the hassles of the transaction. Our newly revised Purchase Order tells us how you want your checks to be made out and where mailed to, such as a Trust, an LLC, Joint Tenants, etc, and describes the purchase terms and conditions.

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Although SMAs can be quite complex investments with a lot of moving parts, a top quality broker can manage and simplify the process and shield you from the difficulties of the process. For example, here’s what Nathaniel had to say about their workflow at

Here’s the summary

  1. You execute a Purchase Order
  2. We deal with  the following:
  1. We Deal With Court Hearing + Approval
  2. We Complete Legal Review
  3. We Fund the Seller
  4. We Prepare Complete Closing Book
  5. We Supply closing Book To You

Only after you have received the closing book documenting the complete transfer is it time to wire money and close the case.

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Now that’s what we call simple, great service! Of course, not all aspects of SMA are as easy as the top brokers make is seem – some of court procedures can be intimidating, so work with a top professional to make sure you are getting the kind of service you need to make a solid purchase decision. AnnuityGenius reminds us in this excerpt that the transaction is complicated, but is a tremendous emerging vehicle for new streams of high-yield retirement income.

Legal Audit to Verify the Transaction

Once the court transfer process is complete, we feel it is essential to have an attorney who is an expert in this area of law verify and double check all of the legal work to ensure everything was done properly and completely, to provide the buyer with clear title to the payment stream. This knowledge is unique and specialized and we have an established network of attorneys to perform this due diligence on your behalf. While we are not attorneys, and even if you are, it is unlikely you are an expert in this area of law to be able to verify your own purchase. Therefore we include and insist on the legal audit to verify every transaction before your purchase is completed. The buyer will be presented with an investor closing book, which summarizes the transaction. This typically includes the assigned payments, amortization schedule, court order, stipulation / acknowledgment from the insurance company confirming the new buyer and the original annuity policy.

The Secondary Market Annuity concept has been a bright spot for many clients during this challenging, historically low interest rate environment. For those seeking a predictable income stream without market risk, Secondary Market Annuities may be a great addition to your retirement income strategy.

Bryan Anderson of Annuity Straight Talk talks about the better deal that SMAs provide compared to other structured settlements. This video is oriented somewhat toward managers, but still provides some valuable insight into the secondary market annuity field.

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Once you’ve made the important to decision to move ahead with an SMA strategy, vet your preferred broker and do your due diligence. One very easy way to learn more about this unique asset class is the free newsletter from our sponsor See our homepage for links to sign up now – there is absolutely no obligation.