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June 15, 2019

Certified "Used Annuity" Is Another Lie to Befuddle Retirees | Don't Fall For It

by Structured Settlement Watchdog

Kerry Pechter, the editor and publisher of Retirement Income Journal, published an article in September 14, 2017 entitled  "On the Case: Income from a ‘Certified’ Used Annuity". Pechter appeared to be humping for a tertiary market company. The National Association of Insurance Commissioners has opined IS NOT an annuity [ see draft Statutory Issue Paper No. 160 December 2018, finalized April 6, 2019]

Retirement Income Journal Was Irresponsible and Misled Its Readers about Investing in SMAs

'SMAs, if you’re new to them, are the “used” contracts referenced in our headline' wrote Pechter. These are income streams or lump sum payouts that were originally awarded to individuals as monetary awards in wrongful injury suits. The recipients of these annuities have the option of keeping them or selling them to investors for lump sums.

Part of the problem with some financial writers and editors is that they don't do their research. Pechter belly flops because:

  1. An SMA is not an annuity. SMA is a scam label for structured settlement receivables (factored structured settlement payment streams).

  2. A factored structured structured settlement payment stream is not a used contract. It is a transfer of structured settlement payment rights. It is a receivable In a structured settlement factoring transaction. No sale of an annuity takes place.
  3. A structured settlement is not an award. A structured settlement is not awarded. That's why it's called a settlement.
  4. The investor in a factored structured settlement payments stream is not buying an annuity. they are buying a receivable not an annuity. Original annuitants cannot sell the annuity that funds their structured settlement because they do not own the annuity.
  5. There are characteristics of an annuity that DO NOT exist with structured settlement receivables.
  6. Factored structured settlement payments streams have more risk than buying an annuity. Kerry Pechter failed to recognize, the threat to investors in factored structured settlement payment streams as evident in Wall v Corona Capital  (known in Feb 2017, before Pechter published), the 150+ investors waiting for payments that may never arrive from investments in scam labeled " SMA" (known in Feb 2017 before Pechter published)

Before Pechter writes any more articles about SMAs he should speak with Barry Cooper who at the time of posting had an open FINRA complaint against a tertiary market company from Oregon. Cooper's claim against one party alleges breach of fiduciary duty, negligence, negligent supervision, common law misrepresentation, breach of contract and unauthorized trading. Transaction at issue occurred in 2013, and involved a Factored Structured Settlement "FSS" payment stream through an approved Outside Business Activity "OBA" and seeks $150,000.00 in damages. The FINRA claim was subsequently settled a monetary penalty was levied according to public disclosure available on the FINRA website for the reps involved.

 

Posted at 12:12 PM in Annuity FAQ, Annuity News, Misinformation About SMAs, Misinformation About Structured Settlement Investments, Retirement Planning, Risks of Structured Settlement Investments, Secondary Market Annuities | Not Annuities | Don't Be Fooled, Structured Settlement Factoring News, Structured Settlement Investments, Structured Settlement Receivables, Structured Settlement Watchdog® |

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  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
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    Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
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  • What Are Structured Settlement Annuities?
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  • History of Structured Settlements
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
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