Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

J.G. Wentworth CAN-SPAM for Cash Now

 

J.G. Wentworth periodically sends promotional messages to its customers said the email I received from the "Bryn Mawr Bunch". Only I AM NOT one of J.G. Wentworth's customers. There can only be one solution!

 

Quest For 3,000: "Wade Blogs" Strokes 3, Gains Ground on Jeter

"Wade Blogs" gained more ground on Derek Jeter in the Road to 3,000 as  he stroked 3 blog "hits" on Tuesday while the Yankees' captain went 0 for 5 for the second night in a row.

The standings

Derek Jeter  2,975 hits

John Darer (a/k/a "Wade Blogs")  2,931 blog posts

John Darer is President of 4structures.com, LLC, a Stamford, Connecticut based structured settlement and settlement planning company, which will donate $1,000 to Derek Jeter's Turn 2 Foundation, Inc. if Jeter gets 3,000 hits before Wade Blogs reaches 3,000 blog posts. Darer is a lifelong Yankees fan.

Insurer's Structured Annuity "Boutique" Doesn't Put Best Deal In Store Front

by John Darer® CLU ChFC MSSC RSP CLTC

Plaintiffs and their attorneys may get better deals on structured settlements if the use their own "personal shopper", particularly deals involving liability insurers with related life insurance companies.  A structured settlement "personal shopper" can help you find the best deals in the store, even if the insurer through its representatives, is not displaying them in the store front. Your structured settlement "personal shopper" can help you find the best "fit" for your financial needs using the available resources.

A store keeper can set up shop and offer only one brand of lemonade if they want. If you're really thirsty you'll pay $2 for that cup instead of 50c that it costs at the other stand a mile down the road. Another example, if you're really thirsty at the movie theater you will pay pay $4 for that bottle of Aquafina that costs $1 at the pizza parlor. So an insurance company can do what it wants when it comes to offering structured annuities! If you don't shop, through ignorance, impatience, laziness or negligence, why blame the insurance company?

WE CAN HELP!

We've observed some Defendants and Defendant's legal representatives are not doing their part to advise plaintiffs to seek independent financial advice on structured settlements as is required under the New York General Obligations Law 5-1702(e).

Some brokers retained by such companies offer only one life insurance company to plaintiffs, even though the insurance company has an approved list of several high quality life insurance companies in its store. The Executive Life and Executive Life of New York cases highlight the importance of diversification, particularly when dealing with big numbers over long payment durations. 

Hire your own structured settlement "personal shopper" today.

Call 888-325-8640 Toll Free in the USA

More on New York State General Obligations Law 5-1702

 

Errant Flynn: The Charge of The Right Brigade!

by Structured Settlement Watchdog®

Colorado Springs attorney Jim Flynn's "Structured Settlement Not always Best Option" is a "Rocky Mountain Oyster". Flynn, who runs a column in The Gazette called Money and The Law lists fly fishing as a hobby but had to know his present value "fish" doesn't fly.

First he suggests that an insurance company "will offer you a choice of $500,000 immediately or $6,000 a month for 100 months. Your initial thought might be: “Well, let’s see. $600,000 is more than $500,000. So that must be the better deal.” He goes on to say...

"In the example given above, let’s assume a reasonable interest rate for a conservative investment lasting 100 months is 5 percent. Using that interest rate, the “present value” of $6,000 a month paid every month for 100 months is $489,871 — meaning the offer of an immediate $500,000 is, at least at first glance, the better offer.  There are lots of other considerations that go into a “which is better” analysis, but purely from a time-value-of-money point of view, a larger amount paid over time may not be the best choice".

Comments:

1. In my opinion Flynn's explanation of present value either highlights how easy it is to manipulate discount rates to confuse those who are unfamiliar with financial calculations or how even an attorney can be befuddled by such calculations.

2. Flynn uses 5% for his example of a reasonable interest rate for a conservative investment lasting 100 months even though 100 months, at 8 years and 4 months  is probably a candidate for a discount rate of 2.46%, the rate on the 7 year United States Treasury on May 23, 2011. If that rate were used the present value of the $6,000 per month for 100 months  is $543,665.36

3. But then Flynn also ignores the taxation of interest. Let's just shave off 15% for taxes to be ridiculously fair . Thus  85% of 2.46% is 2.091%  If that rate were used the present value of the $6,000 pe rmonth for 100 months  is $551,562.72

4. Let's fly cast a few more if say we were to use Flynn's "thumb in the wind" discount rate as "bait"... here's what we "catch"

15% bracket PV

$507,831.54

28% bracket PV

$520,387.44

5. Then Flynn goes off on a tangent and talks about time value of money and factoring.

Flynn's writing style in this article is more typical of a pay per post writer rather than a money or legal  expert. He should have researched his subject better, articulated it like the lawyer he is and been more comprehensive instead of cramming so much disparate crap in his work like a bear getting ready to hibernate.

I'm done.

But Peter Arnold, Number 2, (you can call him #2) for the NSSTA has come out swinging with the oddly titled "Rocky Mountain High" but well written watchdog piece that might be more aptly titled ""Huckleberry Flynn by Tom Lawyer". The structured settlement watchdog is proud of Peter Arnold for joining the "Charge of the Right Brigade". Peter, this song's for you...

 

 

The Road To 3,000: "Wade Blogs" Writes 4 as Derek Jeter Goes 0 For 5

by John Darer CLU ChFC CSSC RSP

"Wade Blogs" beat Derek Jeter on the night as Jeter went 0 for 5 on the night against the Toronto Blue Jays, including two strikeouts.

Yankees fan John Darer (a/k/a "Wade Blogs") a Registered Settlement Planner with 4structures.com, LLC in Stamford, Connecticut and the structured settlement industry's most prolific blogger is also striving for 3,000...blog posts. His Structured Settlements 4Real blog has been in Cyberspace since November 2005.

Darer has stated that if Jeter manages to get reach 3,000 hits before Darer reaches 3,000 blog posts, 4structures.com, LLC will issue a $1,000 check to Derek Jeter's charity Turn2 Foundation, Inc.

As it stands after tonight's game

Derek Jeter 2,975

John Darer (a/k/a "Wade Blogs")  2,928

 

Why Are Some Non Qualified Assignment Companies Offshore?

by John Darer® CLU ChFC MSSC CeFT RSP CLTC

Non-qualified assignment companies are commonly used for structured settlements involving taxable damages, because taxable damages do not qualify under the IRC 130 exclusion used by qualified assignment companies.

A qualified assignment or non-qualified assignment is part of the establishment of the majority of structured settlements because the funding defendants or insurers want finality instead of a long tail periodic payment obligation that exceeds the cost of the structure. The IRC 130 exclusion only applies to periodic payment of damages for personal physical injury, physical sickness, wrongful death, or workers compensation [i.e. damages that qualify for the tax exemptions afforded under IRC 104(a)(1) and 104(a)(2)]. Wrongful incarceration settlements, that represent damages excludable under IRC 139F, may be funded with structured settelment annuities, however the IRC 130 exclusion does not apply and must be completed by way of a non qualified assignment,

At the time of original posting non-qualified assignment companies were located outside the United States, typically in Barbados or Ireland. For a brief period of time there was also one in Bermuda.  When this post was updated, a few domestic non-qualified assignment companies are available but there is still a robust need for non-domestic companies, particularly in the following circumstances:

1. Non-qualified assignment where the start date for payments is more than one year from funding  (e.g. 55 year old claimant wants payments to begin at age 65 to fund lost pension differential in an employment case). It should be noted that American General and United States Life Insurance Company offer a fixed funding agreement funded periodic payment option with a domestic assignment company that permits a start date of longer than one year. A funding agreement is not an annuity and thus avoids the constraints of IRC 72(u).
2. Payments are not subtantially equal and do not qualify under IRC 72(u)
3. An uncapped index linked structured periodic payment funding annuity is desired

In the video below, structured settlement expert John Darer discusses when to consider the use of Non-Domestic Assignment Companies with structured settlements and periodic payment settlements.

 

More information  Non Qualified Assignmments (Non-Qualified Structured Settlements)

Last updated September 14, 2022

 

 

Settlement Planning Is a Process To Help You Through The Financial Transition

by John Darer® CLU ChFC MSSC CeFT RSP CLTC

Settlement Planning is a process not just the sale of a product. Settlement planning is about helping you make the financial transition from the major life event that gave rise to the lawsuit, working through the settlement, addressing your needs, wishes and resources, making a plan and implementing it and hopefully moving on with your life.

Working with a settlement planner offers advantages to plaintiffs and their attorneys. You engage a professional with relevant experience who is skilled at formulating and asking the right questions, the answers from which help unlock an extensive body of knowledge to help you work through transitional financial planning issues at a time when decision making may be overwhelming.

New York/Connecticut/New Jersey area Registered Settlement Planner and structured settlement expert John Darer elaborates in this informative video about settlement planning.

Read John Darer's article about Registered Settlement Planner from the Connecticut Law Tribune 5/25/09. Download Reprint_JOHN DARER article on Registered Settlement Planner_052509

The Road to 3000: Derek Jeter v "Wade Blogs" Update

Derek Jeter had two hits for the Yankees on Sunday in the Yankees' comprehensive demolition of the New York Mets. Yankees fan John Darer  (a/k/a "Wade Blogs") of 4structures.com, LLC in Stamford CT who is challenging Jeter in the race to 3,000, wrote three more blog posts on the Structured Settlements 4Real blog.

Both Jeter and "Blogs" are striving to reach the 3000 milestone. If Jeter beats "Blogs", 4structures.com, LLC promises to donate $1,000 to Derek Jeter's charity Turn 2 Foundation Inc.

Today's standings

Derek Jeter  2,975

John Darer (a/k/a "Wade Blogs")  2,925

Structure Firm Misinforms About Structured Annuity Issuing Companies Due to Website Neglect

 
It says that it "strives to keep its clients updated on the latest news in the industry". (emphasis added). But does this Florida based structured settlement firm actually do that with its website?

 

 

 

 

 The company claims "...the following carriers (to be) providing annuities for structured settlements":

A. AIG Life Insurance Company

Why is this wrong? Hasn't written structured settlements in years.

B. AI Life Assurance Company of New York

Why is this wrong? "AI Life" merged with United States Life Insurance Company in the CIty of New York December 31, 2010, the latter the surviving name.

C. Hartford Life Insurance Company

Why is this wrong? Hasn't written structured settlement annuities since 4th quarter of 2009, although it is purportedly making a cameo later this summer.

D. John Hancock Life Insurance Company

Why is this wrong? As the result of a re-structuring of underwriting entities by parent Manulife on January 1, 2010, the two underwriting entities are John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York

E. Pacific Life Insurance Company

Why is this wrong?  Pacific Life Insurance Company is neither the underwriter, assignee or guarantor of the Pacific Life structured settlement program. Pacific Life and Annuity Company is the underwriting entity.

F. Prudential Insurance Company

Why is this wrong? The legal name of underwriting entity is The Prudential Insurance Company of America  (emphasis ours)

Comment: The company in question has a New York office. It is a requirement under New York Insurance Law that the full legal name of the insurance company be listed in advertisements along with the city and state of its home office.

Message: If you are going to put yourself out there as "striving to keep its clients updated on the latest news in the industry", strive a little harder. I find it embarrassing when industry colleagues who've been around the block neglect their storefronts.

List of Structured Settlement Annuity Companies, including assignment companies and guarantors

 The Breakfast of Champions!

 

 

 

Derek Jeter or "Wade Blogs"? Who Will Get to 3,000 First?

by John Darer CLU ChFC CSSC RSP

Derek Jeter of the New York Yankees and John Darer have something in common. We're both trying to reach 3.000. So I'm going to give him a challenge.

Let's pit one of the Yankee's most prolific hitters against the structured settlement industry's most prolific blogger. He's going for hits and I'm going for blog posts. I've been blogging about structured settlements since November 2005.

If Derek Jeter manages to beat me to 3,000, my company 4structures.com, LLC will make a $1,000 donation to Turn 2 Foundation, Inc. Derek's charity that creates and support signature programs and activities that motivate young people to turn away from drugs and alcohol and "TURN 2" healthy lifestyles

As it stands at time of posting Derek's in the lead.  I've got triple the ground to cover, but I'm coming dude.  At about 2 plus posts a day I should hit 3,000 in about a month. As a lifelong Yankee fan I hope you go on an rampant tear Derek, but I intend to push you all the way man.  Every little bit helps right?

Derek Jeter                                       Career Hits  2.973

John Darer (a/k/a "Wade Blogs")*       Blog Posts    2,922

John Darer, President of 4structures.com, LLC in Stamford CT,  is a Registered Settlement Planner and structured settlement broker. His blog Structured Settlements 4Real provides structured settlement information, settlement planning issues/ ideas, and recovery management news, muckraking commentary, watchdog exposes and expert opinion that may be helpful to attorneys, claimants, adjusters, media and interested others, delivered with a dash of humor and occasional irreverence.

Updates to follow...