Annuity buybacks normally occur when a specialty finance company offers a lump sum cash payment in return for previously purchased annuity payments. Major annuity providers are now beginning to offer buybacks as a way to compete for customers wanting to cash out annuities. Annuity providers are not only buying back personal annuities, but also structured settlement payments that they previously sold to customers. The problem for some annuity companies is that specialty financing companies are often able to offer customers more money at a given time, thus capturing most of the buyback market. What is on the horizon for such competitions? Let’s take a look.
Where Competition Comes From?
Competition for annuity buybacks falls under three main categories. The first is specialty finance companies who’s primary business model is buying annuity payments as investments. These companies can have multiple funding sources, and can often very good pricing. The second is emergence of annuity providers themselves offering a similar service to specialty finance companies, buying back their own policies. The third being independent brokers who work as the middle man with a variety of funding sources. Future competition is on the horizon in the form of commercial banks, credit unions, saving and loans institutions, and other lending companies who see the value of offering annuity buyback services to their customers. Because the latter mentioned institutions are generally larger they may be able to offer more capital than specialty finance companies, it is quite conceivable that competition may become harder for the smaller companies to keep up with.
How Specialty Finance Companies are Competing With the Big Boys
In order to compete with larger commercial companies, many specialty finance companies are relying on their personalized customer service abilities as a way to keep and gain customers. They are marketing their skills in quality of service provided, as well as the turnaround time it takes during the funding process. It all comes down to convenience for the customer. Specialty companies also rely on the fact that they may have more power with pricing and funding options, which can be tailored to a particular customer’s needs and wants.
Knowing What Retirees Want
Retirees are probably the biggest group of individuals who take advantage of buying annuity payments when they cash in on their retirement plan funds. Many seniors would much rather set up an annuity installment plan that offers a safe, longterm, tax advantageous investment strategy rather than receive a lump sum of their earnings. To this end, retirees want to feel comfortable and at ease with the company that they choose to delegate these payments and usually pick an A Rated Annuity Provider. Annuities are generally considered a very safe investment product. However, financial circumstances change and annuity owners sometimes wish that they had access to the funds they have contributed to the annuity.
Annuity Buyer Auctions
Giving annuity owners the ability to access a variety of annuity buyers competing for their business is a service whose time is eminent. This type of service not only allow retirees to gain the best prices for the sale of their annuity payments, but also clients who own annuities in the form of a structured settlement. This forces buyback companies to fine tune their services to keep the annuity buyer game in a fair playing field. In addition, the competitiveness of an auction platform assures that the absolute lowest discount rates are applied to the buyback price of annuity payments, and the client receives the most amount of cash back possible.
Annuities are a valuable part of today’s financial world. They provide a safe longterm investment strategy with good returns. Financial circumstances do change, and if annuity owners are in need of funds they have contributed to their annuity, then only one option should exist. Selling payments using an advanced auction platform that brings top annuity buyers together and gets the maximum amount of cash back for the sale of annuity payments.
Greenwich Hospital London
Image by tsbl2000
My brother and I had a dark and breezy trip from Southend Pier to the Pool of London yesterday and back on the vintage steamer MV Balmoral. A great trip on a fabulous boat, run by White Funnel Ltd of Bristol. More to follow but first is a picture of Greenwich Hospital from the River Thames.
The Royal Charter of William and Mary dated 25 October 1694 established the Royal Hospital for Seamen (latterly known as Greenwich Hospital).
It was a home for retired seamen of the Royal Navy, and to provide support for seamens widows and education for their children, and the improvement of navigation.
The first Pensioners arrived at Greenwich in 1705.
By the end of the century there were more than 2,000 pensioners living there.
With changing social conditions, and after more than 20,000 ex seamen had passed through the Hospitals care, the last Pensioner left in 1869. The Hospital then devoted its resources to paying pensions and educating children. It still pays charitable annuities today and provides sheltered housing for eligible elderly seafarers and substantial grants to naval charities.
At present the main beneficiary is the Royal Hospital School which was founded in Greenwich in 1712 and moved to Holbrook, near Ipswich, in 1933.
The Royal Naval College used the Hospitals original buildings at Greenwich from 1873 until July 1998. The Hospital then gave a 150-year lease to the Greenwich Foundation for the Old Royal Naval College, a charity established to take responsibility for preserving, finding new uses for, and encouraging public access to the Royal Hospital site. The buildings once used by the Royal Hospital School in Greenwich were taken over by the National Maritime Museum in 1934. Source: www.grenhosp.org.uk/about/greenwich-hospital-history/