Fortunately, there is an investment product that not only possesses these traits, but excels at each.
The product is called Life Settlements.
For many years now, financial institutions including Warren Buffet's investment arm Berkshire Hathaway, AIG, ABN AMRO, Merrill Lynch, Credit Suisse First Boston, and Deutsche Bank have invested HUNDREDS of MILLIONS in life settlement companies for one simple reason:
Life Settlements are not subject to any stock market or economic conditions...none!
Did you know:
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Statistically, approximately 90 PERCENT of life insurance policies never pay the death benefit because they are allowed to lapse.
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When they lapse, the insured LOSES ALL THE MONEY they've invested into premiums and their beneficiaries receive nothing.
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In times past, the only other alternative for the insured was to take a very small cash surrender value amounting to ONLY PENNIES ON THE DOLLAR of their original investment.
Since 1991 Life Settlements, over 1.2 billion dollars worth, have a proven track record of greater than 14.2% annualized ROI; even during such events as the dot com crash, 9/11 tragedy, Iraq wars, and the skyrocketing oil and commodity prices etc. Why?
Again,
Life Settlements are COMPLETLEY UNCORRELATED TO THE SECURITIES MARKETS or ECONOMIC EVENTS.
So how do Life Settlements measure up to our panels' characteristics of the ideal investment? Let's review:
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On the risk continuum, Life Settlements offer the equivalent safety somewhere between money markets and investment grade bonds.
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Originator publicly traded with SEC oversight
- Contractual agreement with B+ or better Legal Reserve Insurance Companies
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Since inception Life Settlements has produced historic double digit returns with an averaged ROI over 15%.
- This financial product has a battle tested track record through both bull and bear markets.
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Life Settlements are the ultimate diversification tool due to the fact that they are uncorrelated to the stock market, oil prices, interest rates and even terrorism.
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Life Settlements serve as a better uncorrelated hedge then bonds and have the potential to generate double digit returns.
They should be the FOUNDATION of every investor’s portfolio.
For many years Life Settlements were only available to institutional investors. Financial icons including Berkshire Hathaway, AIG, ABN AMRO, Merrill Lynch, Credit Suisse First Boston, and Deutsche Bank have invested hundreds of millions in life settlements with the understanding that the return of their principal and return on their principal are the Contractual obligations of highly rated insurance companies.
Their pursuit of this market is related to the degree of PROTECTION and the AVOIDANCE of Market and Economic Risk.
These institutions involvement provide immense credibility because of the level of due diligence they require of any investment before actually committing their own dollars.
Life Settlements presents the rare opportunity for an accredited investor to invest on a level playing field with major institutions.
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Senior citizens are released from the burden of high premiums and are provided lump sum payments.
- In many instances, this much needed capital infusion allows them to live out their remaining years in dignity.
- All fees associated with Life Settlements are built into the acquisition costs and therefore all of the investor’s money goes to work for them.
- All your money is invested without paying any management fees or underlying fund expenses in cash or IRA investments. Qualified funds are subject of Custodial fees; typically around $100 to $200 annually.
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Life Settlements should be viewed as a medium to long term investment.
- They are perfect for retirement dollars, college savings funds and cash investments.
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While at certain points in time stocks have yielded double digit returns, even the best exit strategies are formulated on speculation and conjecture. To enjoy increasing returns, one must accept the ever increasing risk of losing principal along with profits.
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With Life Settlements, the investor, at his or her discretion, may exit at every policy maturity.
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The vast majority of investors however, elect to roll over returns into additional policies.
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Life Settlements are the ultimate AUTO PILOT INVESTMENT.