When we say "Wholesale Income™" we refer to period certain, fixed-term annuity payments that are purchased in a ‘secondary market’ transaction, at a discounted, "wholesale" price that is normally available only to industry insiders.
These discounted payment streams have also been called "‘Secondary Market Annuity Contracts", "Settlement Contracts", "SMA Contracts", and several other names. The bottom line? These are the best safe money assets available on the planet today.
These annuity payment streams belong to individuals who seek to sell their future payments in exchange for cash today in a ‘factoring’ transaction. Typically, the payments are guaranteed and period certain payments awarded to individuals in structured settlements. The right to receive these annuity backed future payments is transferred in a court-ordered and regulated process.
In addition to factored structured settlements, secondary annuity market or SMA secondary market annuities may also refer to in-force period certain annuities or a lottery prize payout. In any situation, these pre-defined, fixed term income streams offer a higher yield because the future payments are sold at a discount.
The vast majority of Secondary Market Annuities we sell, and which we focus on this website, come from structured settlements, whereby the original payee/ recipient decides to sell their future payments for cash today. Through a court-ordered assignment process, purchasers acquire the right to receive the existing payment stream from the current recipient of the income. This discounted sale transaction creates an opportunity for a profitable, safe investment in an in-force payment stream.