Today, in investmentnews.com, there was an article illustrating the increasing interest in products with higher yields, such as secondary market income annuities (SMIA).
Yield-starved investors and their advisers are discovering a complex investment vehicle: annuities awarded in wrongful-death or injury lawsuits that are being sold as factored structured settlements.
The 7% yield on these products is attractive at a time when five-year certificates of deposit return around 2%, and fixed annuities yield just slightly more.
Secondary Market Income Annuities are originally issued by highly-rated insurance companies and provide some of the best yields available on the market today. SMIAs can help your clients address their long-term income, growth, and savings needs. Each SMIA is unique and is typically only available for a very limited amount of time.