Legal
Disclosure & risk disclosures
Please read this page carefully before investing. It explains what a secondary market annuity is, what it is not, and the risks that apply.
General disclosure
Pacific Structured Assets, Inc. does not provide tax, legal, financial or accounting advice. The material on this website has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial or accounting advisors before engaging in any transaction, including the acquisition of factored structured settlement payments. Pacific Structured Assets is not registered with the Securities and Exchange Commission and is not licensed to sell insurance in any state.
Risk disclosures for secondary market annuities
Secondary market annuities can be a defensible source of fixed income, but they are long-term, fixed-income holdings with real risks. The following disclosures apply to all inventory offered through this website.
Not tax, legal, or financial advice
The content on this website is for general informational purposes only and is not, and should not be relied on as, tax, legal, financial, or accounting advice. Every investor's situation is different. Consult your own tax, legal, financial, and accounting advisors before engaging in any transaction, including the acquisition of factored structured settlement payments.
Not a security
A secondary market annuity is the assignment of an existing, court-approved payment stream. It is not a registered security, not a mutual fund, and not an investment contract offered by Pacific Structured Assets. Pacific Structured Assets is not registered with the Securities and Exchange Commission and is not a broker-dealer or investment adviser.
Not FDIC-insured or bank-guaranteed
Secondary market annuities are not deposits, are not insured by the FDIC or any government agency, and are not guaranteed by any bank. Your protection is the financial strength of the issuing insurance carrier and the court-approved assignment of the payment rights, not a government or deposit guarantee.
Long-term holdings with limited liquidity
Secondary market annuities are intended as long-term holdings, best suited to capital you can commit for the long term, over a payment stream that can run for years or decades. There is no public or daily market. Resale or reassignment of a payment stream to another buyer may be possible with our assistance, but it is not guaranteed as to availability or price. Because the payments are fixed, resale value moves inversely with prevailing interest rates, so you could realize a gain if rates have fallen since purchase or a loss if rates have risen. You should not purchase a payment stream with capital you may need to access before the payments are scheduled to be received.
Carrier and credit risk
Scheduled payments depend on the continued financial strength and claims-paying ability of the issuing insurance carrier. Carrier ratings can change, and the amounts payable are subject to the carrier's ability to pay. The issuer for each stream is disclosed on the listing so you can evaluate it before reserving.
Life-contingent mortality risk
Life-contingent secondary market annuities pay only while the original annuitant lives, and the streams we place are hedged with a life insurance policy on that annuitant. They offer a slightly higher estimated yield. If the annuitant passes earlier than expected, the payment stream ends early and the life insurance policy pays a lump sum, structured to preserve the investor's estimated yield for the time it was held. What is not guaranteed is the full total of the scheduled payments, since the stream can end before the projected number is reached. Guaranteed-category streams do not carry this mortality risk.
Yields are calculated at purchase and are not guaranteed beyond the contractual stream
Advertised yields of roughly 4-7% represent the effective annual yield calculated at the time of purchase based on the fixed payment schedule and purchase price. The payment amounts and dates are contractual, but the realized return can be affected by the risks described here, including early termination of life-contingent streams.
Past performance does not guarantee future results
Any reference to the historical performance of payment streams that Pacific Structured Assets has placed, including references to no carrier defaults in placed inventory, describes past experience only. Past performance is not a guarantee or reliable indicator of future results.
First-come, first-served inventory
Inventory is unique and limited. Each payment stream is available only once and is offered on a first-come, first-served basis. Availability, yields, and pricing shown on this website are subject to change without notice and may no longer be available at the time of inquiry.
Contact
Questions about this disclosure can be directed to Pacific Structured Assets, Inc. at cwhitman@pacassets.com or (800) 928-7680. Our office is located at 2626 Foothill Blvd, Ste 200, La Crescenta, CA 91214.