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"Paper Bag Writers" | Anonymous Generators of Structured Settlement Social Media Road Kill

by Structured Settlement Watchdog®

Anonymously registered websites and blogs featuring poor quality content related to structured settlements continue to arrive like a meandering army of "pot heads" to a Grateful Dead concert.

"Dedicated" to those structured settlement websites and those who choose to take the unproductive road of  communicating through multiple sock puppets, proxies and "personalities" and scrambled IP addresses. 

To the tune that a chorus of soccer fans might sing on any given Saturday afternoon in a London derby:

They Know Who They Are

They Know Who They Are.

They're Paper Bag Writers

They Know Who They Are

Our mission to is to encourage others to improve the quality of the content that is disseminated to the public about structured settlements.

As I've clearly shown and been able to back up with facts, alot of content generated by "Paper Bag" writers is poorly researched junk. Instead of doing something positive about it, like improving the quality of structured settlement related content, a select few choose to make threats and engage in bizarre business practices.

 

                 

                                                                                            

 

 

Structured Settlement Social Media Road Kill WhatAreStructuredSettlements.Org

by Structured Settlement Watchdog®

Like this baby who can't figure out how to get the spoon out of his mouth, we have yet another anonymously registered structured settlement website associated with the structured settlement secondary market, that produces some of the dumbest things written about structured settlements. Nobby's Beach Australia, home of erstwhile "redirect scheme" landing page Freedom1stfunding.com is, according to whois records, also the spriritual home of whatarestructuredsettlements.org.

Here are three examples that are demonstrate why whatarestructuredsettlements.org IS NOT a trusted source of structured settlement information.

1.  "People who are compensated a large arrangement from your injuries state seldom notice all of the cash at the same time".

Comment: So let get this straight, you get hurt and someone else gets paid? This ain't the Sopranos folks! And believe me they'd notice the cash!

2. "This is a type of financial loan provided to a person or perhaps a team or even family members (in a few cases) in which the financial loan quantity is generally the entire quantity of the actual organized arrangement".

Comment: Structured settlements are neither financial loans, nor a bouquet of flowers.

3. This particular maintains people through foolishly investing the cash and lower upon cash, that is much more devastating if they happen to be unable to act as a direct result the actual injuries"

Comments: Abject financial illiteracy. Underscores why whatarestructuredsettlements.org is a waste of time for those seeking legitimate structured settlement information.

When you employ people to write for you that don't know their coccyx from their ulnaris, it's no wonder that those associated with this stuff keep their heads under a paper bag.

Click the link if you want to know what are structured settlements  from an credentialed structured settlement expert.

About Structured Settlement Social Media Road Kill

Social Media Road KIll is an ongoing blog series in which Structured Settlement Watchdog® John Darer® identifies and roasts writers and websites that misinform the public about structured settlements. Some of the material that is produced by non experts is so pathetically bad it's funny. We root out the crap and present it for our readers for their entertainment and for educational purposes.  Ideally the Structured Settlement Watchdog would prefer that writers do their homework before publishing so that consumers have the clearest path to accurate information about structured settlements.

Einstein Structured Settlements More "Einstein the Sheep Dog" Than Scientist on Structured Settlements

by Structured Settlement Watchdog®

In " Sailing Away With Structured Settlements", Einstein Structured Settlements demonstrates that they bear more resemblance to the fictional Dr. Emmett Brown's fictional sheepdog from 1985's Back to The Future than the famous real-life scientist.

 

                                                                        "Einie"

A. Their attempt to gain credibility with sailors in Newport Beach California, "capsizes" when they say " there are rough waters and winds that make things a little choppy when at sea". Download Einstein Structured Settlements November 22, 2012 Sail Blogs

E just does not equal mc squared here. Without wind your name is "Bob". It's not a "luffing" matter.

English dramatist George Chapman (1559-1634) wrote “Give me a spirit that on this life's rough sea Loves to have his sails filled with a lusty wind, Even till his sail-yards tremble, his masts crack, And his rapt ship run on her side so low That she drinks water, and her keel ploughs air”  Tragedy of Charles, Duke of Byron. Act iii. Scene 1 (1608)

In Wikipedia it is noted that a sailor manages the force of the wind on the sails in order to move the vessel relative to its surrounding medium (typically water, but also land and ice (think Titanic)  and change its direction and speed. Mastery of the skill requires experience in varying wind and sea conditions, as well as knowledge concerning sailboats themselves and an understanding of one's surroundings

B. Then Einstein gets the "Oracle of Omaha" all wrong when they quote "Sometimes the high tide protects you but as famous investor Warren Buffett has said when the tide comes in you know who has been swimming naked".

In his 2001 Berkshire Hathaway Chairman's letter, Warren Buffett actually declared "You can only find out who is swimming naked when the tide goes out."  (emphasis added).

C. Then they say "So the question that begs is what to do when times get tough and the sailboat is being dragged down? Thats the million dollar question. Don't be afraid to ask for help and sell off assets when need be. It's important to think about yourself."

Does the question beg? Or does something "beg the question" ?

If one is to continue the nautical theme, a captain of a vessel is traditionally the last one off a sinking ship, not necessarily think about himself first.  The BBC posted an informative article "Must a captain be the last one off a sinking ship?" in its January 18, 2012 commentary of the Costa Concordia crash off the Italian coast,  where the captain purportedly abandoned ship before all the passengers.

Moving on to the unlikely event of "when a sailboat is being dragged down", Archimedes Principle explains the concept of buoyancy, which is that in order for an object to float, it must displace an amount of water equal to its weight. Archimedes of Syracuse is regarded as one of the leading scientists in classical antiquity and one of the greatest mathematicians of all time (like Einstein).  As a sailboat's weight pushes downward and displaces water beneath it, an upward force equal to that weight holds the boat up.

To be more "spinnaker" than "spin doctor", instead of getting themselves twisted in the abundance of distracting technical flaws,  why has Einstein not simply used an image or animation of a boat that has sprung a leak, that is rapidly filling with water and needs to be bailed out?   

I continue to be unimpressed with lack of knowledge displayed by Einstein Structured Settlements in their publications. My opinion is based on what I have observed and subsequently recorded in this post and my November 20, 2012 post "Who is Einstein Structured Settlements?"

 

 

Hardy Boy John Curran's "Hardy Har Har" to Mass Tort Lawyers

by John Darer® CLU ChFC MSSC RSP CLTC

I think what John Curran is trying to say is that busy Mass Tort plaintiff lawyers should be referring their clients to settlement planning experts and that by doing so, it may be more efficient,  lead to better decisions by their clients, improved client satisfaction and ultimately, more referrals to the lawyers.

John Curran is a "Hardy Boy", a staff writer for Top Mass Torts, one of J. Scott Hardy's internet properties established July 13, 2012. His November 19, 2012 mis-titled post " Structured Settlements A Risk For Mass Tort Lawyers (sic) Clients" at www.topmasstorts(dot) com is replete within inexplicable errors.

For example

A. "For many people the amount of the jury award or specialist settlement can be larger than what they're (sic) expected lifetime income would have been"

Comments:

• Define "specialist settlement" in the context of mass tort or personal injury?
• If the number is greater than the the expected lifetime income it means that the mass tort lawyers have done a great job in securing a recovery for their clients.
  

B. "However both plaintiffs' and defendants' legal teams often take advantage of settlement brokers who may not have the best interests of mass tort lawsuit lawyers' plaintiffs in mind".

Comments:

• Rather cynical, isn't it? Who is taking advantage of whom?

C. "One option is to consult with planners such as those with the Society of Settlement Planners or those that simply do not work on commission".

Comments:

• If there is a structured settlement being placed there is a commission being paid by the annuity issuer or treasury funded structured settlement provider. Other financial products or services may have fees associated with them. This should be disclosed.
• With all due respect to the SSP, whether or not "planners" are "with the Society of Settlement Planners" is irrelevant with respect to this point. What is important, in my opinion, is the knowledge and credentials of the settlement planner.

D. "The decision about what to do with this money then, means that lawyers and mass tort attorneys may want to step aside".

Comment

Some lawyers may indeed be busy. Others may wish to limit the scope of the advice they provide beyond their specialty. I think the point is that a lawyer should ( and many of them do) recognize the importance of proper planning for their clients and the need to bring in expertise that can help their clients.

E. "It's important to consider whether not mass tort lawsuit attorneys should recommend the plaintiffs hire a financial adviser to monitor these structured settlement options. For example, while it may represent an added cost it could limit any potential backlash against the law office while also providing a plaintiff the ability to guarantee their financial security".

Comment

• In a settlement planning context, financial advisers provide advice and solutions. They do not guarantee financial security for a commission for a $1,500 fee. The guarantees are provided by the institutions behind the solutions.
  
• A skilled financial adviser, settlement planner, financial planner, insurance agent, broker...etc., with the proper credentials and intangibles from years of practical experience, is helpful in explaining the process, discovering your needs through a skilled line of questioning, helping you understand your  exposures and the potential consequences of leaving the risk exposed, making recommendations, answering your questions, implementing recommendations
• Often services are provided by a team of specialists as part of a community of practice.
  

 

 

JG Wentworth (JGWPT) Securitization Underscores Value of Structured Settlements to Investors

by John Darer® CLU ChFC MSSC RSP CLTC

“This deal proved extremely successful from both a placement and a yield perspective for both the issuer and the investors. The final pricing was in line with assets of similar characteristics, while still allowing investors a healthy spread pick-up. In addition, there were several new investors in the transaction, which together with our traditional investors, underline the growing popularity and understanding of this asset class as a conservative and traditional investment opportunity.”  JGPWPT Chief Investment Officer Stefano Sola, in a press release announcing a new $215MM securitization November 19, 2012 backed by structured settlement and fixed annuity payments. 

The irony of all this is that to get the business, some cash now pushers (including Peachtree) attempt to induce structured settlement annuitants to sell the rights to their structured settlement payments by mocking their value.

American College Announces PhD Program in Financial Services and Retirement Planning

by John Darer® CLU ChFC MSSC RSP CLTC

The American College has created the only PhD of its kind, a doctorate in Financial Services and Retirenment Planning with a goal to advance public literacy in financial planning and retirement income with this remarkable degree. 

Doctoral scholars will participate in two, one-week residencies on the American College campus in Bryn Mawr, PA, as well as at least one intensive debrief with faculty prior to the dissertation defense. Scholars will complete one course per quarter online over twelve quarters, in addition to the residencies. Potential scholars should only consider the program if they can make a four-year commitment while working full-time.

The program has been funded with a generous endowment from New York Life Insurance Company, one of the companies that issues structured settlement annuities. New York Life is the model of a stable insurance company having stood the test of time since 1845. The significance is that New York Life has has possibly even insured the retirements or lives of the great grandparents and great great grandparents  of many of today's Baby Boomers.

Although not specifically catering to them, The American College offers numerous resources for settlement planners  , who can augment their industry specific professional designations with a more comprehensive financial education. The American College has two programs for the Chartered Healthcare Consultant and Chartered Special Needs Consultant which should be of of keen interest to settlement planning professionals. The latter of the two, the ChSNC, will be rolled out beyond Mass Mutual agents in June 2013.

 

Who Is Einstein Structured Settlements?

Even Uncle Albert Says "Bollocks!" to Einstein Structured Settlements

by Structured Settlement Watchdog®

Einstein Structured Settlements sensationally and falsely claimed that the product of factoring companies paying cents on the dollar is a dirty little secret that insurance companies and lawyers do not want the public to discover.  This nonsense was set forth in a press release dated November 19, 2012, a time when Einstein had barely even done a deal at a time that Einstein was fraudulently advertising paid actors giving paid testimonials as if they were real customers of the company.

Einstein Structured Settlements' press release is simply not credible on its face because the structured settlement transactions are negotiated. In order for a structured settlement to be a created, a release specifying the periodic payments must be executed by the parties (including the injured person,  or guardian if applicable). There is no secret.

Einstein Structured Settlements website lacks credibility, is full of careless inaccuracies and general "bollocks bolognaise":

For example, Einstein Structured Settlements says

A. "There are some other restrictions to structured settlements. In most cases, you cannot leave them to your heirs if you die. That means the source of income can die with the recipient. Nor are structured settlements truly tax free, because the IRS regards any money you receive in settlement payments as income"

When In fact

• With a structured settlement that includes a certain period and/or guaranteed lump sum payments YOU CAN leave what is remaining and due to be paid from those payments to your heirs.
• Structured settlement payments are income tax free if the payments represent damages on account of personal physical injury, physical sickness, wrongful death or workers compensation. [see IRC 104]

B. "It should be noted here that many people will get a better deal on a loan if they sell the annuity for the cash, put the cash in the bank, and take out a bank loan. The bank loan (or line of credit) will usually have a lower interest rate and more flexible terms than the structured settlement loan".

• Comment: This just shows how out of sorts Einstein is.

 

C.  "A structured settlement confuses a lot of people who are not in the factoring industry. Below are some examples of awards and agreements from defendants (the factoring company acts as the plaintiff) in real life for the structured settlement industry".

• Comment: Cue the circus elephants and bears on unicycles. The "factoring company acts as a plaintiff?"

D.  "Jonathon worked in a factory and was standing on a ladder installing new hardware for the company. When he slipped and succumb (sic)  to an untimely death the court had ruled that the factory was negligble (sic)in his death. His wife Diane was the recepient (sic) of his structured settlement. The factories (sic)insurance company agreed to pay out for the next 30 years..."

Comment:  Wasn't the factory negligent or was its responsibility "negligible"?

Einstein Structured Settlements' website, which features a caricature of Albert Einstein that appears to be stoned beyond any "theory of relativity", was only registered on October 14, 2012 and the Internet has been flooded with "do it yourself press releases" featuring what is gibberish, in my opinion.

Other things that raise red flags here:

1. Einstein Structured Settlements has an anonymous Domain Name registration
2. The address on the website says 5600 Wilshire Blvd, Los Angeles. Yet in another reference it says 550 Wilshire, which is in Santa Monica.                                                                                        So is it           or     ?
   
   
   
3. Despite showing an address on its website of 5600 Wilshire Blvd, a business entity search with the California Secretary of State has no record of Einstein Structured Settlements, LLC. Neither does Delaware, Nevada or Maryland where a call to the toll-free number rolled over to a Maryland Verizon number.
4. Yet another anonymously registered website has popped up in the name of one of our nation's historical heroes. It turns out Ryan Einstein is related to Franklin Structured Settlements as well, at least according to something he posted on a cooking website November 14, 2012 called " The Best Fruit Is" [Kiwi he says, because it has more potassium than a bannana (sic)  and more calcium than an orange]. The toll-free number listed on the Einstein and Franklin structured settlements websites appears to be the same.
   
5. YouTube channel created November 17, 2012, 1 video  The one video is a testimonial of someone who purportedly did business with the company. The video has drawn over 300 views in 2 days for something that is not particularly notable.  [ Evidence later emerged that the Einstein "testimonial" and another one published at the same time were fake testimonials using paid actors]
   
6. Einstein Structured Settlements has no Better Business Bureau accreditation or rating. [ It later emerged that Annuity Sold, a related company has a very poor D+ rating from BBB]
   
7. Last evening a person purporting to Ryan Einstein contacted me from a cell phone with a 410 area code. It later turned out to be Ryan Blank of Owings Mills Maryland. He responded with a startling level of paranoia that made me even more skeptical of who Einstein Structured Settlements is. What company CEO when presented with the opportunity to promote his company responds with "My lawyers have told me not to say anything"?  Naturally with that response I wonder if the company or its principals are presently involved in any litigation? Do the lawyers run the company or does he?  [ It later emerged that Richart Ruddie was in the midst of litigation for Deceptive Trade Practices
   

In my opinion, based on what I have been able to glean (as related in my commentary above), I wouldn't trust referring structured settlement funding to Einstein Structured Settlements. There are other players in the structured settlement secondary market that are more established and possess a better grasp of the facts.  

Postscript:  In January 2018, the Maryland Attorney General banned a slew of Ryan Blank and Richart Ruddie associated entities from doing business in Maryland for 7 years over their fraudulent business practices. Richart Ruddie also was forced to plea bargain with the Rhode Island US attorney over another fraud related to his reputation management business and had to pay monetary compensation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sell Structured Settlement Two Months After Creation | Would You Pay to Get a Bad Haircut?

by John Darer CLU ChFC MSSC RSP

The first call she thought she had the wrong number

The second call she asked if we handled structured settlements and said she was seeking "a loan" from her structured settlement.

So I asked a few screening questions:

Q. Was this a personal injury or liability settlement?  A. Personal Injury

Q. What company is the annuity with?  A. I don't know?

Q. When was the structured settlement set up? A. Two months ago

Q. Two months ago?  Are you aware that if you sell you will take a big hit?  Why are you selling? A. Don't worry about it

Snip Snip Snipped Off as You Get It Rip Rip Ripped Off

She Tragically, based on the following assumptions this person will end up with 45% less than the cost of funding the structure 2 months earlier if she sells it with a 9.8% discount rate. Even with a 5% discount rate it would be about a 21% haircut off the cost of the annuity.

Assumptions: $1,000 per month for 240 months starting January 1, 2013, Annuity issuer is one of the leading A+ rated companies and for illustrative purposes it is priced out with all payments being sold. Prices will vary by settlement purchaser and the haircuts could even be larger with some purchasers.

 One factoring company executive aptly observed that a sale shortly after creation of the structured settlement "would be tantamount to being underwater in a car lease if you chose to trade cars after two months of taking possession.  It simply does not work".

 Plaintiff lawyers and settlement consultants should be diligent about asking questions and probing for a plaintiff's immediate cash needs prior to the creation of a structured settlement.

 

 

 

 

 

Peachtree's Advice "Sell Structure To Retire Early or Take Vacation'"

by Structured Settlement Watchdog

If you are thinking about retiring early, does it make sense to take Peachtree's advice* and sell a stream of tax free income that you are already receiving (or scheduled to receive) and sell it for a discounted amount of cash which you then invest (most likely on a taxable basis) hoping to produce more income (on the discounted amount), in an environment in which taxes are likely to go up in the long term?


While sometimes legitimate reasons to sell your structured settlement are raised, the implications of this bit of 'dog do" retirement planning from the Peachtree mutt suggests that more "puppy pads" and 'crating" may be required, in my opinion.

Fortunately a judge must approve structured settlement transfers under the structured settlement protection acts in effect in 48 states.

*appeared in a web page linked to a Google alert of November 19, 2012.

The Financial Security Behind Structured Settlement Annuities

by John Darer® CLU ChFC MSSC RSP CLTC

If you have a structured settlement or are considering a structured settlement and the current level of economic uncertainty is causing you some concern about all things financial, consider this commentary from A.M.Best;

"Defying a host of economic challenges, financial impairments in the (life insurance) segment have appeared to reach their lowest point in half a century in terms of number and frequency in 2011". Emphasis added.

Source:  Insurance Company Facts and Stats 2012 Edition, published November 12, 2012. 

That's the lowest in the industry since 1962. when many Baby Boomers were still in diapers!

Some of my other observations from the excellent A.M. Best publication:

A.  The Life Insurance Groups that issue Structured Settlement Annuities Are Among The Top U.S. insurers in Terms of 2011 Admitted Assets

1. Metropolitan Life & Affiliated Companies 

includes  current structured settlement annuity issuer Metropolitan Life Insurance Company and reinsurer  MetLife Insurance company of Connecticut

2. Prudential of America Group

3. Manulife Financial

includes current structured settlement annuity issuers John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York

5. Sun America Financial Group

includes current structured settlement annuity issuers (American General Life Insurance Company, United States Life Insurance Comapny in the City of New York and former issuers, Variable Annuity Life Insurance Company ("VALIC") and Western National.

6. New York Life Group

7.Hartford Life Group

includes former structured settlement annuity issuer Hartford Life Insurance Company

9.ING USA LIfe Group

includes former structured settlement annuity issuer Security Life of Denver

10.  AEGON USA Group

includes former structured settlement annuity issuers Monumental Life, Transamerica Life, Transamerica Occidental, Commonwealth, People's Security Life

B. The Life Insurance Groups that issue Structured Settlement Annuities Are Among The Top U.S. insurers in Terms of 2011 Capital & Surplus  (what's left over after liabilities are deducted from assets)

2. Metropolitan Life

3. New York Life Group

5. Sun America Financial Group

6. Mass Mutual Financial Group

includes former structured settlement annuity issuer Massachusetts Mutual Life Insurance Company

7. Prudential of America Group

8. AEGON USA Group

9. ING USA LIfe Group

The A.M. Best report presents an assessment of the challenges facing life insurers

• How to match returns guaranteed to policy holders without taking too much risk in their investment portfolios.
• Exposure to commerical mortgages, commerical mortagge backed securities amd home-equity asset-backed securitgies exceds 20% of total industry invested assets.
• Product development in the retirement security area and how it may impact growth

While recognizing the challenges Best observes "As the recent financial crisis has demonstrated , secure-rated companies have the capital to withstand a reasonable amount of investment losses"

Consider this List of Recessions in the United States since 1797 along with the dates that many of the companies currently and formerly offering strctured settlement annuities were founded. While each financial crisis has its own set of risk characteristics, some of these companies could easily say "been there done that". They, and other life insurers who do not write structured settlement annuities but write other financial products that are important to financial planning, settlement planning estate planning, long term care and wealth management, have proven the ability to stand the test of time.

 New York Life 1845

MassMutual 1851

John Hancock Life 1862

Met Life 1868

Pacific Life 1868

Prudential 1875

Transamerica 1906

Liberty Mutual 1912, backs Liberty Life Assurance Company of Boston 1964

United States Life Insurance Company in the CIty of New York 1919

Allstate Life 1931

It is worth pointing out that banks have had a far worse history of failure than insurers issuing structured settlement annuities from 2008-2011. 

Problembanklist.com stated on January 12, 2012

"For perspective on the size of the failed banking assets held by the FDIC consider the following comparisons.

• Total assets of the 92 banks that failed during 2011 totaled $36 billion.
• The FDIC Deposit Insurance Fund (DIF) currently has a balance of only $7.8 billion which provides insurance protection on a staggering $6.78 trillion in deposits".