Life Settlement Investments "A New Wall Street Asset Class For Independent Registered Investment Advisers To Examine"

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What Life Settlements Can Do For An Investment Portfolio

What if Registered Investment Advisers could answer the question of What Should They Do In This Current Turbulent Market Condition? How to avoid the conditions that adversely affect a client's investment portfolio and provide the financial health an accredited investor want's to achieve?

Life settlement investments offer a financial solution and a non correlated asset that have been predominately purchased by institutional investors and has recently become available to Registered investment advisers, as an investment choice that they can take to the bank.

As we know a financial investment whether it be a stock investment or any other financial investment of any type, has to have the element of a decent rate of return to put back into the investment funds that registered investment advisers manage.

The investment market offers many challenges for investment asset management, with so many investment companies, investment securities, investment services, and other financial services.

Most markets are affected by fluctuations and economic factors that cause both a lack of stability and volatility (you don't know precisely when a trend is going to change), which can cause unknown results, unknown time factors, and potentially unforeseen tax consequences.

Clients calling with concerns regarding market conditions, may be keeping independent registered investment advisers awake at night thinking about ways to stabilize a client's portfolio and provide that portfolio health RIA's are looking to attain.

Registered investment advisers need to be able to provide clients with a stable asset that has, a clear expectation of payment, a fixed maturity date, and a healthy amount of profit?

Fortunately for registered investment advisers there is Wall Street's newest asset class. This new investment vehicle provides a way to reduce the volatility of a portfolio while maintaining a healthy rate of return.

Life Settlement Investing is becoming better known as a viable well performing investment asset and registered investment advisers are also acquiring knowledge on how this investment asset can serve the investment fund growth for their clients.

Wall Street's newest asset class is called Life Settlements, and they are similar to zero coupon instruments, but with the potential to generate higher returns over a shorter period of time than comparable fixed income investments.

Historically investments in life settlements have produced double digit returns. Life Settlements have the added benefit of being completely uncorrelated to either interest rates or the stock market, and can thus reduce volatility in a client's portfolios.

Life Settlements have become a contender for investment fund allocation and is steadily gaining favorable review by registered investment advisers as Registered Inestment Advisers do the work of re-balancing their client's portfolios and allocation investment dollars to safe haven.

Life Settlements Are a Sound Investment Opportunity That generate Value To Any Investment Portfolio 

What is a Life Settlement?

Wikipedia
: A life settlement is a financial transaction in which a life insurance policy owner possessing an unneeded or unwanted life insurance policy sells the policy (at fair market value) to a third party for more than the cash surrender value offered by the life insurance company. The purchaser becomes the new beneficiary of the policy at maturation and is responsible for all subsequent premium payments.

Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older. Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier.

And while many policy owners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U.S. Representative Bill Gradison, and numerous media sources including The Wall Street Journal, Time Magazine, Business Week and The Economist. A growing number of experts now believe that informing clients about offering life settlements should fall under the fiduciary duty of a financial adviser.

Life Settlement Videos 

Here is a video that explains how this market works.

Life Settlement

Video about Life settlement

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How Long Has The Life Settlement Industry Be Around? 

Tic Toc Tic Toc

The life settlements investment industry was created in Europe around 1880. However, it did not become established in The United Sates of America until approximately in 1980, when the AIDS epidemic generated an urgent necessity to use the funds trapped within life insurance policies to fund expensive medical treatment and vaccines for those suffering from either HIV OR AIDS. Since then a secondary market has been developed that allows for the trading of life insurance policies.

Why Will People Sell their Life Insurance?

The reasons life insurance owners sell their life insurance policies vary:

-.They no longer need the policy due to the death of a spouse, a divorce, or children that have acquired economic stability.

-.They can no longer afford the payments of insurance premiums.

-.They need the funds and want use them for purposes such as medical assistance, donations, or to finance other investments.

The Life Settlement Investment Strategy 

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These are a Few Advantages of Life Settlements for Investment Purposes

Repackaging to provide security in maturity dates.

Annual third party accounting.

Reporting on all aspects of investment.

Stabilizing a client's portfolio.

Knowledge of the life settlement industry and the strength of expertise.

Who Invests in Life Settlement? 

Over the past decade institutional money has invested in the life settlement industry. Global companies, multinational banks and large hedge funds have been highly active investors. Recently, the minimum required investment has decreased and the opportunity has been made available to accredited investors. These are some of the big names that have made headlines in their acquisition of this investment vehicle:
  • Warren Buffet's Berkshire Hathaway
  • AIG
  • Citigroup
  • Deutshe Bank
  • GE Capital
  • Merril Lynch
  • Ontario Teacher's Pension Fund

"Life Settlement Contracts Are Protected From The Volatility of The Financial Markets"

Life Settlement Communities 

Lexnet
A life settlement network that connect the online marketplace of life insurance trading.
Bussiness Wire
Read and stay tune the latest news regarding life settlement
Life Settlement Community
A useful community to make connections to agents,providers, and investors as well to stay inform on recently news and updates specifically for life settlement industry market.

What Do You Think About Life Settlements As An Investment? 

AndyPo wrote...

Great lens and welcome to the Investment Club group.

ReplyPosted November 19, 2008

Lensmaster

Rinchen Chodron wrote

How very interesting - I'm going to check with my broker! I learned a lot. Five Big Stars *****

Reply Posted November 11, 2008

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