Little-Known, Oft Misunderstood Investment Asset
We all should take a look at alternative asset classes that are non-correlated to all markets. One class is especially shielded from adverse moves in interest rates, equity markets, real estate, the energy market and, believe it or not, even geo-political events. The investment is available for both cash and retirement accounts, is socially responsible and provides liquidity to seniors in need. This asset class has a risk/return that outperforms traditional fixed income instruments with a total projected yield whose fixed return equals 65% and, based on holding period, can result in a 10% plus annual yield.
However, before we tell you exactly what we are talking about, let's take a look at Fred. Fred is a hardworking 55 lumber man who's been growing his business for 30 years. With a thriving business, and a bright future, Fred looks to the bank for a capital loan of $5M dollars to grow the business. The bank agrees, with one stipulation, Fred needs to purchase a $5M life insurance policy in case of his death. Confident in his abilities and the future of his company, Fred agrees and the business grows.
After 30 years of a successful growth, Fred sells his business, retires and is finally ready to enjoy life. Unfortunately, Fred has acquired some health related issues over the years, and due to his age, his medical situation gets complicated. He needs money, and due to his medical condition and age, needs to get his paperwork in order. Fred's financial advisor visits and discovers the Life Insurance Policy, questions Fred on the why he has such a policy and hears Fred's story.
Fred is in luck and has three options regarding his life policy at that point;
1. to save cash outflow, stop paying the policy and let it lapse (which in fact happens to 90% of all policies);
2. get a cash surrender value from the always helpful insurance company or
3. take advantage of a little known strategy - sell the policy on a secondary market. Research shows, that by selling the policy on the secondary market Fred can get as much as 8 times the cash value his friendly insurance company is willing to pay him.
So, what's in it for you? Senior Life Settlement Contracts are the investment vehicle that provided Fred his out. Through Capstone Partners you can purchase a bundle of these contracts that act very similar to zero-coupon bonds. By purchasing existing policies, and in essence helping Fred enjoy the final years of his life, Capstone's packaged settlement notes provide a conservative investment strategy with a guaranteed payout.
Actuarially calculated for between 4-7 years, these packaged policies provide a medium duration investment with a solid return. A 100K investment will result in both the return of principle and an additional 65K of gain with a targeted return date of 5 years.
