Predictable, Effective, and Immediate, Our Short Term Strategy

When it comes to short-term saving and retirement options, would you rather choose one that moves at a snail’s pace … or would you rather spread your wings and fly?

In the current low interest rate environment many short-term saving and retirement vehicles, such as CDs, have interest rates that rarely outpace inflation.

On the other hand, Structured Cash Flows may provide a monthly income with effective yields above other traditional options: as much as 6-8% for a five-year note.

BACKGROUND ON DISCOUNTED CASH FLOWS

For more than 30 years now, the secondary market for numerous discounted cash flows has grown to represent a billion-dollar-a-year industry.  Examples include secondary market pension payments, lottery payments, annuity payments, structured settlements, and lawsuit settlements.

Most of these products are purchased directly by institutions, such as banks and hedge funds, but recently this market has expanded to include qualified individuals.

STRUCTURED CASH FLOWS … PREDICTABLE INCOME

Structured Cash Flows are discounted cash flows that provide a predictable income stream. Sourced from a qualified annuity payment, retirement benefit, or pension income, they are sold at a discount in exchange for a lump sum payment and are often paid by institutions such as the federal government, investment grade corporations, and state and local governments .

Their benefits include:

  • Above-average interest rates as compared to other fixed products
  • A customized income stream to meet specific living expenses or funding requirements
  • Predictable income, with cash flows paid for a set period of time


PURCHASING A STRUCTURED CASH FLOW

In the case of Structured Cash Flows, the seller has a need for a lump sum payment today, and the buyer sees an opportunity to receive a dependable monthly payment in the short-term future. Structured Cash Flows are purchased at a discounted value from the seller.

The discounted rate for each Structured Cash Flow is determined by the current market price, or what a seller is prepared to accept as a lump sum in return for parting with a portion of his annuity, retirement or pension income for a set period of time.  (Anytime a supply and demand market is created, there can be good opportunities for both the buyer and seller.)

Click here to meet with one of our financial professionals to see if a Structured Cash Flow may be right for your specific situation.