The past several weeks have been surreal as our schedules, routines, and lives have been upended by the COVID-19 pandemic. Adding to the health scare, is economic uncertainty, with many losing 20% – 30% or more of retirement savings.
The question now is exactly how do we recover financially? We’ve had two massive market corrections in the last 12 years. It’s essential to make wise decisions about where to invest your money as you try to rebuild your retirement savings. For anyone that reads our blogs or has done business with us, you know our mantra is “building wealth without Wall Street risk!” One of the tools that we use and that most people on Wall Street don’t know about is a little known asset class known as Life Settlements.
Investing in Life Settlements isn’t new; in fact, it’s been around for over 100 years. But not all financial advisers understand them or want you to know about them. A life settlement refers to the sale of an existing insurance policy for a one-time cash payment. The purchaser becomes the policy’s beneficiary and assumes payment of its premiums and receives the death benefit when the insured dies.
We work directly with Penumbra Capital Management, a premier life settlement provider located in Southlake, TX. They have put together this short video to explain exactly what a Life Settlement is and how it works; click here to watch. Simply enter your information in the boxes and for the “Access Code” enter “penumbra”.
Don’t let the fact that your financial advisor hasn’t talked to you about Life Settlements keep you from exploring them as a smart investment opportunity. Instead, take a look at the following facts -and decide for yourself if they make sense for you.
- There is No Market Risk – If investors learned anything from the Great Recession, it’s that anything is possible when it comes to the stock market, and the possibilities are both good and bad. Life Settlements are not correlated to any markets. Whether the markets go up, down, or sideways, they do not affect Life Settlements.
- Life Settlements Provide True Portfolio Diversification – Diversify, diversify, diversify. This is the mantra of all smart investors, right? Sadly, few have or understand diverse portfolios. Adding life settlement investments to your portfolio adds true diversification to your efforts to build a solid financial future. Which means, not only is your principal guaranteed, but so is your growth. How many of your current investments have guaranteed growth?
- Life Settlements Create Win-Win Opportunities – Life Settlements are win-win opportunities because both the buyer and the seller benefit.
- Tax Benefits – Taxes on Life Settlement investments are entirely deferred until the policy pays out. This can allow you greater financial flexibility.
- Your Success Doesn’t Depend on Someone Else’s Management Skills – This might be the biggest reason your financial adviser isn’t talking to you about Life Settlements. Once you invest in Life Settlements, there aren’t really any more decisions to be made, other than whether you want to expand your life settlement portfolio or sell to other buyers. The only variable for which you have to account is time. Life Settlements are considered long-term investments, which can provide you with stability. And over time, Life Settlements have been shown to offer returns in the high single digits to the low double digits.
Now is the time to educate yourself, ask questions, and rethink precisely how you’re going to get ahead or back on track for your retirement. I encourage you to give us a call at 574-234-1980 to learn more about how life settlements could become a key component in your overall investing strategy.
