What Are Annuities, Private Placements, and Illiquid Securities? - Transcript

Placements the liquid Securities these are all things that once you’re in it it’s very difficult to get out of it so I lump them together for those reasons that these are not things that are publicly traded per se so you can’t just say you know what I don’t like this anymore I’m gonna sell it now annuities you can get out of an annuity but there’s steep penalties for that and you lose a lot of the benefits of the first place reason that you may have gone into an annuity with private placements I mean there are some private placements the way that the operating agreement is worded they are Perpetual for the rest of your life maybe your family’s life maybe their family’s life uh and so on and so forth there are sometimes a secondary market for some of these products but you typically take a 30 40 50 haircut on the Investments current value which may not even be full value to sell it in the secondary Market these are investments where it is critically important at the outside outset that the recommendation be appropriate for you in your best interest considering yourself and even your estate uh and your family members you know are the people that are going to inherit this able to understand what it is and manage it is it a large portion of your estate these are all questions that really critically have to be asked at the Forefront before going into an investment like this.

---