LOL..these guys make some nice money. Prolly why most lotteries now give their own Lump Sum option so these outfits dont rape the winners. I mean, it is their right--do what you have to in order to make good returns.
Yeah...Genworth had some issues from underlying Mortgage Loans I think it was (well some issue anyway that I researched at the time and memory is fading on it), that drove stock to $1+, but they seemed to explain it well at the time, and they are spin off of General Electric..so I dont think they would go down. They were a great stock play in Nov, March. Stock closed at $13 today so I like them. I also invested some in them late 2008 early 2009...I think they will be around.
All good points..of course this is no US Treasury..but still you are looking at 30 YEAR rates at 4.17%. While there are certainly other factors at work- the professionals arent buying into your theory 100% yet or these rates would be much higher already. It is obvious that you may have to watch for higher rates..but is by no means a certainty or foregone conclusion.
as the existence of this thread proves what extra return is necessary for an instrument which has little liquidity ?
Google "note buyers", find a board and post all the details of your annuity and let people bid for your note, or put a fixed price in and see what kind of offers you get. I would personally be surprised if you got offered more than 65k from a professional. But if i were you, i would put an ad in the paper. (first off, I did a simple calculation and im guessing your interest rate on that annuity is a little over 5% right?) If i was looking to sell it quick, I would try to sell it for $74,250. That gives the buyer a nice 12% interest rate on the annuity. I'm sure you could try a better price though as you might get an inexperienced person to buy it. For example $82,800 would give them a 10% return, $93,350 would give 8% and so on. The professional note buyers are trying to get an interest rate of usually a min of 15% to 50% interest. Thats why the 30k-50k offers (which is a 21%-43% interest rate)
The Lump Sum option on lotteries pays approx. 50% of the stated prize amount. It's true that there annuities are 25 yrs. not 19. I wouldn't expect to pay more than 60% of the total annuity amount.