As an investment advisor or agent, you have a responsibility to grow your clients’ portfolios and help them achieve financial stability up through and following retirement. Diversification across different asset classes is the key to minimizing risk and increasing the chance of an overall healthy return on investment. The secondary market is one such asset class you may be interested in exploring for your clients.
SMA Hub is a leading wholesale distributor of secondary market assets, especially secondary market annuities. Our company was founded in 2013 by financial industry veterans hoping to provide premier advisors with exclusive access to SMAs.
The wholesale business model of only working with agents and advisors—not retail clients—prevents us from being in direct competition with our distribution channels. In this way, our services provide certainty to advisors. We also thoroughly process any secondary market assets we acquire before putting them up for sale, ensuring quick closing and optimal protection for the end purchaser. The streamlined purchase process also provides proven payment streams and high returns.Read More +
Annuities are financial products that pay out a fixed stream of income to individuals, usually retirees. The money comes from a substantial lump sum or monthly payments put into the annuity during the accumulation phase. Once payments commence at a specified date, the contract enters the annuitization phase.
Secondary market annuities originate from existing annuities that become available for purchase. They offer fixed-term payment streams, up to several decades long, from top-quality insurance carriers.
SMAs could be the right fit for your client’s profile if he or she is looking for above-average returns with relatively low risk. Investors must also have enough resources to tie up funds in this illiquid investment.
SMAs offer many of the same benefits as primary market annuities—including payment certainty and a guaranteed yield—without all the restrictions associated with insurance contracts. While insurance products often translate to low returns for the investor, SMAs routinely provide yields 1-4% higher than comparable original issue annuities at a lower cost and without introducing a high level of risk.
SMA Hub is far from merely a “middleman” in the process of transferring structured settlement cash flows. We acquire original issue annuities in their entirety using an independent business trust. Then, our experienced, on-staff attorney navigates the complexities of transitioning the financial product into a secondary market annuity.
Only once the review process is complete and the sale of the payment stream has been court-approved do we list SMAs in our inventory. This adds additional layers of protection to your practice and ultimately your clients. By the time you see SMAs for sale on our website, all due diligence has been performed. Therefore, you can expect to close your client’s case within 24 to 48 hours, pending liquidity of funds.