If you have around $18,500 sitting in your IRA, Roth IRA or profit sharing, don't have any restrictions on where you can place your money for the next 20-30 years, you can lock in an internal rate of return of 7% and produce a laddered payment stream, starting in 20 years, with a total payout of $88,116 over that time period. Compare that to the 30 year Treasury Bond that was yielding 3.908% at the time of writing.
The structured settlement payment rights are backed by a structured settlement issued by Metropolitan Life Insurance Company ("MetLife"). MetLIfe is the USA's largest life insurance company.
If you have around $57,450 there is an opportunity to an income stream for about 19 years also emanating from a structured settlement funded by an issued by Metropolitan Life Insurance Company. The Internal Rate of Return in that case is 6.27%
In order to acquire such rights you typically have to put 10% down and then pay the balance at closing. The purchase of structured settlement payment rights differs from the purchase of a standard annuity in that the rights are acquired through a court approved transfer. A judge must determine that the transfer is in the seller's best interest.
Due to a limited supply deals there is usually a short window that these deals are available.