While some persons are looking for annuities that are of low rates and in addition must pay regular fees for variable annuities that tend to fall under equity risk, still others are taking matters more seriously by turning to structured settlements where they can get more for their money. Knowing when and how to invest money in economic turmoil such as is happening today is important when it comes to increasing one’s portfolio.
Structured settlements can cause an investor to gain on secondary market pensions of 6 percent and more. These wealth yielding annuities often appear in online promotions, newspapers or magazines and promoters usually use words such as “It’s your money!” as well as “Don’t wait to be paid” to promote them.
How does it work?
Lawyers usually work to see to it that insurance companies pay out annuities such as these after a client sustains injury or file a medical malpractice lawsuit. The client can sell his or her guaranteed income, which was ordered by the court to a third party if he or she should need ready cash fast. Yields can be from 1 to 4 percent and an investor can gain from a structured settlement more than he or she can gain from other primary market annuities.
Buying and selling
Annuities bought and sold on the secondary market can sometimes be difficult to track. However, according to an annuity consultant known as Stan Haithcock, he reports that there is a value of about $1 billion in annuities still sitting down on the secondary market waiting for buyers to scoop up. The greater portion of about 80 percent of annuities is sold to hedge funds, institutional investors and private equity owners. Individual investors are allowed to buy them at a price less than what hedge funds and private equity owners pay for them.
To get a structured settlement one has to go by the first come first served rule and therefore each buyer should make every effort to put in his or her order early. To avoid making mistakes on purchases, a buyer should use the services of an annuities broker who specializes and understands how the secondary annuities market works.
The annuity holder must get proper approval from a judge before he or she can legally change any agreed payment rights. Financial advisors who refer their clients to annuities brokers should stress that if the transaction is done incorrectly, both the financial advisor and the broker might have to appear before a judge to answer questions for possible financial breaches done on their parts.
Taking a close up look at 4 top insurance companies that offer structured settlements
1. Metlife Inc.
Metlife Inc. (MLG, Financial) offers to clients an array of products such as income annuities and defined structured settlement plans. MetLife’s year-to-date figures is presently at +4.51 percent. This amount advanced to about +1.59 percent since last week and shows +2.87 percent since three month ago.
The company’s recent closing price, which was standing at $54.90, was set at +19.97 percent. This amount gave way to an increase from a low for the past 52 weeks, which was at -3.70 percent that was standing below a 52 week high. The last closing price for Metlife Inc. was +3.81 percent and this signaled an increased 200 days average price.
2. ING Groep NV.
ING Groep NV (INZ, Financial) extends services in banking, life insurance, investments and operates a worldwide retirement service. The last trading day for ING Groep ended with them at $13.12. The last performance within a 5-day period happened to be -0.98 percent. For its 2014 performance, the company‘s year-to-date figure stood at -6.35 percent.
Company stock, which traded at final closing, was +4.21 percent, which actually is registering an increase of after a 52-week low performance. Stocks remained at 12.65 percent below its usual 52 week high. It finally settled at a price of -5.82 percent, which is a cry below the SMA 200. The distance observed between SMA 50 and SMA 20 was registered to be -5.98 percent and -3.97 percent.
3. Prudential Financial Inc.
For the last 5 days, Prudential Financial Inc. (PHR, Financial) has been showing signs of improvement. It went up by +1.44 percent while showing +1.89 percent in its year-to-date performance. For its 3 months overall performance, it showed a +4.87 percent increase.
Prudential’s last closing price in the amount of $91.58 was +7.17 percent, which is an increase of 200 days average price while it stood away by +6.41 percent from the SMA 50 and another +3.89 percent from the SMA 20. After a grueling 52-week low, the company’s stock arose at +21.52 percent and settled below its 52 week high at -2.21 percent.
4. Genworth Financial Inc.
Genworth Financial Inc. (GNW, Financial) is a company that provides services to its clients in the areas of insurance, investment and other financial solutions to their global customers that they believe will help their clients to develop a solid financial portfolio. Its year-to-date performance went down to -44.88 percent last week and later began to show some signs of improvements in later trading.
The company’s price at the last closing date went up +19.39 percent when compared to its last 52-week low and further showed -54.32 percent below a 52 week high. Company stock that traded last was at $8.56.
Still, trading stocks went further down to its latest price at closing to -40.45 percent staying wide of the 200 days average price and kept a modest distance by staying clear at 14.55 percent of the SMA 50. In comparing with the SMA 50 to that of the SMA 20, it differ at +2.47 percent.
While insurance companies are able to provide structured settlement annuities for their valued customers, still to achieve strong yields the road might prove to be a challenging one for investors of all types. However, while the risks are sometimes big, the potential to make great profits is even bigger.
