6 Primary Categories

There are 6 primary categories of payments.

We use the categories to break out payments of varying terms and to describe the nature of the payment stream.

  • Immediate Income

    Payments Start Within 2 Years

  • Immediate Income With Lump Sum

    Income + Lump Sums, Starting Within 2 Years

  • Deferred Income

    Payments Start Later than 2 Years

  • Deferred Income With Lump Sum

    Income + Lump Sums, Starting Later Than 2 Years

  • Short Term Lump Sum

    Payments Under 10 Year Term

  • Long Term Lump Sum

    Payment Term Greater Than 10 Years

Immediate Income

Immediate Income Secondary Market Annuities offer a steady stream of income.  We define ‘Immediate” as starting within two years, and these income streams can last from 5 years on the very short end, to 30+ years on the long end.  Unless specifically noted, these are all guaranteed payment streams and will pay to the investor or their heirs.

Each payment is comprised of principal and interest.  See our page on Taxes on Secondary Market Annuities.

Immediate income With Lump Sum

Cases in this category, like the Immediate Income category, offer payments starting within two years, but they also include lump sum payments interspersed throughout the term.

If there is a particular income you like but do not like the lump sums, our new purchase process allows us to carve out the lumps and sell them separately.  The reverse is also true- we can separate the lumps for one investor and income to another.

Deferred Income

Deferred Income cases start more than 2 years out, but in reality, there is a wide range of Secondary Market Annuities in this category.  They may be anything from 3 year deferral and then income, to 30+ years of deferral then income.

This category is especially important for investors with IRA’s and who may be younger, who do not need income to start right away.

Because of the deferral time period, where deferred/compounding/accruing all works in your favor, massive gains can be found in this category.

Deferred Income With Lump Sum

As with the other deferred income, there can be a wide range of payment terms in this category.  The only difference here is that lump sums may be interspersed in with income streams,.

Deferred income with lump sum is perfect for investors looking to place capital now, generate income off that capital in the future, then replace that capital also for future flexibility or re-investment.

As with the immediate income with lump sum category, we are able to separate out the lumps sums and sell them separately if they are not desirable.  Don’t ignore this category if there is an income you want but don’t want the lump sum! Give us a call, and we can tailor it to your needs.

Short Term Lump sum

Short Term Lump Sums are one or more lump sum payments with a total term of less than 10 years.  This may be one 10 year lump, or 3 annual lumps the last of which falls on the 10th year.  Both would be listed as a Short Term Lump Sum with a term of 10 years.

These payments are perfect as CD replacements or as fixed annuity replacements, or can be combined with income cases to replace capital or provide future flexibility or inheritance.

Long Term Lump sums

Long Term Lump Sums have a total term over ten years.  Now, some payments may occur earlier than 10 years, but the term is measured by the number  of years  until the last payment.

These payments are perfect as CD replacements or as fixed annuity replacements, or can be combined with income cases to replace capital or provide future flexibility or inheritance.