3 Primary Categories

There are 3 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 Starting Immediately- Typically Within 1-3 Months

  • Deferred Income

    Payments Starting Typically 3-5 Years In Future

  • Lump Sum

    Lump Sum Payment- Typically 3 to 20 Years In Future

Immediate Income

Immediate Income Secondary Market Annuities offer a steady stream of income.  We define ‘Immediate” as starting within a few months, and these income streams can last from 7-10 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.

Investors typically seek immediate income cash flows for retirement income and safe alternative investments.

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

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 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.

Lump Sums

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.