Scott Romanek, Managing Director, Sales, AIR Asset Management joins Keith Black, Managing Director, RIA Channel to define life settlement investing, its key benefits, and how the asset class fits in a portfolio.
A life settlement is the sale of an existing life insurance policy to a third party for a one-time cash payment. Whoever purchases the policy becomes its beneficiary and pays the policy’s premiums, and the owner of the policy receives the death benefit when the insured person dies. There is value on both sides of the transaction as the person who sells the policy generates extra retirement income by cashing out their life insurance asset, and the investor secures a low-risk, high-return asset.
AIR Asset Management differentiates itself in the longevity-based investment space with its opportunistic, active, and quantitative approach. In addition to investing in life settlements, AIR’s multi-strategy approach provides exposure to structured settlements and private credit. By incorporating a variety of investment components, AIR aims to enhance portfolio diversification, liquidity management, and consistency in returns.
From an allocation perspective, many advisors are leveraging AIR’s strategy as an alternative income portfolio component. Life settlements, historically, have delivered non-correlated equity-like returns with low volatility and high stability.
WEBCAST: Incorporating Life Settlements and Private Debt in an Asset Allocation.
As more advisors come to understand the compelling investment case for dedicating a portion of client portfolios to life settlements and private credit (the short answer: double-digit targeted returns that are largely uncorrelated with financial markets at a time when many investors are looking to diversify), the inevitable next question is where those assets fit in a portfolio allocation framework. Previously the exclusive province of large institutions, life settlements are increasingly accessible to qualified individual investors. But for advisors to help their clients take advantage of these and other private debt opportunities, they first need to understand how to characterize them in the context of a financial plan.
Join Rich Beleutz, Founder & CEO at AIR Asset Management, for this educational discussion that will cover:
- Family Office & RIA allocation trends in the current market
- Private credit investing landscape
- Understanding the compelling benefits, the risk/return profile, and the risks of life settlements investing
- Incorporating life settlements and private investments in a total asset allocation framework
- Benefits, risks, historical performance and fees
Accepted for 1 CFP® / IWI / CFA CE Credit