Secondary Market Discounted Income Contracts

PURCHASING INCOME STREAMS OR FUTURE LUMP SUM PAYMENTS AT WHOLESALE PRICES

There is a secret out there that very few people know about in my opinion. 

It is how to get a great income that either the income or the yield or both are guaranteed.

  • Did you know you could purchase money at a discount? 
  • Did you know that income would be guaranteed by “A” rated insurance carriers? 
  • Did you know this secret income strategy has been going on for years and you never knew it? 

This chapter will open your eyes to the world of purchasing current and future income and lump sums at a discount. 

This chapter alone is worth more than you paid for a book. 

Very few people know you can do this, but it happens every day. 

Now in all honesty, it took me years to find out about this, so don’t be surprised if you or someone you work with does not know about this. 

I try to constantly be on the lookout for strategies or ideas that can help my clients. 

This is priceless.

 

Chapter 12

 

PURCHASING INCOME STREAMS OR FUTURE LUMP SUM PAYMENTS AT WHOLESALE PRICES

The There is a secret out there that very few people know about in my opinion.  It is how to get a great income that either the income or the yield or both are guaranteed. Did you know you could purchase money at a discount?  Did you know that income would be guaranteed by “A” rated insurance carriers?  Did you know this secret income strategy has been going on for years and you never knew it?  This chapter will open your eyes to the world of purchasing current and future income and lump sums at a discount.  This chapter alone is worth more than you paid for a book.  Very few people know you can do this, but it happens every day.  Now in all honesty, it took me years to find out about this, so don’t be surprised if you or someone you work with does not know about this.  Since I specialize in the retiree market I try to constantly be on the lookout for strategies or ideas that can help my clients.  This is priceless.

Here is a hypothetical example of a couple both age 64 with a retail annuity that has a present value of $363,943.75 they purchased to provide an safe, reliable income stream during retirement to supplement their social security as well as pension income they are going to receive.  Should this couple annuitize this contract or take advantage of an income rider it has, it could provide a lifetime income of $1,288.96 per month or $15,467 per year if the income rider is utilized.  This income is guaranteed by the insurance company backing the payments.  Over 33 years this would pay out $510,411 if both spouses were alive.  With another major insurance carrier, using the same $363,943.75 could pay up to $1,364.78 a month or $16,377.46 a year.  Over 33 years the total payout would be $540,456.18, again assuming both spouses were alive.  If they both died, the total payout could be as little as the original amount they paid for the retail annuity minus fees.

NOW, let’s compare to the little known program of purchasing an income stream at a discount.

Let’s use the same amount of money but wait three years to start the income stream.  Using the same amount of money this couple would receive $1,763.02 a month starting in three years and last for 360 months.  That’s 30 years of monthly income.   Now in addition to that income they will get additional checks. 

Here is how the payout would look.

  • 2012 – $25,000
  • Receive $25,000
  • 2013 – $12,500
  • Receive $12,500
  • 2014 – $12,500

This example paid out $50,000 so far the best annuity example would have paid $49,131 thus far.

2015 – 2045

Monthly income starts here at $1,763.02 a month  $398.24 greater than the best annuity example.

2017 – $30,000


 From here on out these lump sums are in addition to the monthly income the couple is receiving.

  • 2022 – $50,000
  • Another $50,000
  • 2027 – $75,000
  • Another $75,000
  • 2032  for $100,000
  • Another $100,000

Total payout $939,687.20

Remember even after these lump sums stop the couple would still be receiving their monthly income for another 13 years.  This income is guaranteed by the insurance company backing the payments.

The regular retail annuity products would pay out a much lower monthly income and would not provide any additional lump sum payments.  The regular retail annuities most of the public knows about could pay up to $540,456 over 33 years.  In the above examples it would take up to 47.28 years to get the same amount of money the little know method would have paid over 33 years.  While some will say the income is not guaranteed until the death of both husband and wife, paying for 33 years, when someone is 64 I think that just about covers longevity.  However, if you’re worried about the last few years, save some of the almost $400,000 you received in additional income.  To me this is simple.  A couple could receive $939,687 from age 67-97 under the advanced money for a discount method, or get approximately $400,000 less utilizing a retail annuity sold to the general public.  The true beauty of this is we still have the same type of guarantees, (they are guaranteed by the insurance company backing the income stream) but get more money.  Beautiful!

Here is another example for review.

Let’s say you had $147,697.59 to spend to provide you the best income you could get.  You also want the income starting in 2016, so it can only sit for 4 years, then; you want to start receiving money.  Let’s review some of your options for safe money.

  1. You could put your money into a Government bond at next to nothing.
  2. You could put the money in a CD or very short term fixed annuity.
  3. You could put your money into a fixed indexed annuity or variable annuity, as long as you could start pulling an income in 4 years.  Let’s say you’re 60 and would like an income for you and your wife.   The best case that I know of, if you received a 10% bonus and then utilized an income rider paying 7% annually, at the end of 4 years you would have $212,960 to create an income.  Utilizing a 4.5 multiple for joint and survivor you would receive $9,583 per year
  4. Or you could utilize the secret world of purchasing income at a discount.  In 2016 you would receive your first check for $35,000, 2021 – $50,000, 2026 – $75,000, 2031 – $100,000, 2036 – $150,000.  Over the course of 20 years you would have been paid $410,000 vs. $191,990 from the retail annuity method.  You could have received $9,583 payout from the regular retail annuity method or received an average of $20,500 a year from the more sophisticated method.  Again, the true beauty is both income streams are guaranteed by the insurance company that provides them, but one costs you less and you received more.  Beautiful!

To recap the two examples.

Age 64-67 payout $510,411 from one company, or $540,456 from another company, or if the discounted money method and receive a total payout or $939,687.

Or the $147,697 example could pay out $9,583 a year or an average or $20,500 a year but paid out slightly different.  Total payout over 20 years in the first one would example would be $191,990 or under the sophisticated way $410,000.  Learn from me how you could drastically increase your income from the retail annuity you have been hearing about from all the insurance and annuity guys.  Remember all these examples are guaranteed by insurance companies.  One just pays a bunch more.

To learn more about these incredible contracts simply contact me. 

Very few people know of these contracts and even fewer know how to get them.

Contact me today!!! By clicking the contact me on the website or calling (239) 558-2116.

 

 


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