by John Darer® CLU ChFC CSSC RSP
Juhanni Tonti B Sc (left) is the author of a "Purchasing Structured Settlements: 5 Profitable Reasons". Don't trust the Cheshire Cat smile, because in my opinion the guy dispenses bogus advice on the subject.
Tonti
"Because the federal administration has given the benefits, they can advice (sic), whether you as an investor can get them too, if you will purchase structured settlements".
Comment:
The Obama administration does not dispense financial advice.
Tonti
"Gives A Tax Free Benefit.
The periodic settlements are mostly tax-free. This is very important for the investor, when you think, how much taxes you usually have to pay from the results. Note, that not all settlements are tax-free, so you must be very careful as to the details of the plan."
Comment:
Regardless of whether the underlying settlement was for payment of damages from a personal physical injury (excluded under IRC 104(A)(2)) or for payment of other forms of damages, the purchaser and new owner of structured settlement payment rights incurs taxes on the investment results. The tax bite can be mitigated for a period of time by purchasing such rights through a tax qualified plan, such as a Roth IRA
CONCLUSION
As almost anyone with a pulse can take advantage of the lack of federal or state regulation of solicitation in the secondary market, there is a proliferation of non experts dispensing "advice" about the purchase of structured settlement payment rights. Just last week we had a self aggrandizing New York City structured settlement nobody, promote himself as a "structured settlement legend". All he proved to the structured settlement watchdog and pals, is that he knew how to issue a press release.
Comments