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May 25, 2013

Does E=Cash, or is a Structured Settlement the "Money Pulse"?

by John Darer CLU ChFC CSSC RSP CLTC E equals MC squared

E = MC ^ 2  ( "E equals MC squared") famous equations of mass-energy equivalence stands for Energy = Mass times the Speed of Light (C) squared.  Simply said,  if you take the mass of an object and multiply it by the speed of light (299,792,458 metres per second in a vacuum) you will then have calculated the amount of energy.

Structured Settlements Meet "Astro Physics" and Nutrition

Does Einstein's theory of mass-energy equivalence have ANY significance to the structured settlement secondary market? One company that purchases, or arranges for the purchase of structured settlement payment rights  suggests that E=Cash. Does E=Cash?

Consider this...

  • Cash is like a carbohydrate in your diet, a source of energy that you can burn through too quickly, although maybe not "as fast as the speed of light".
  • A structured settlement is gives you a slower burn rate  (and provides tax benefits if you have  a physical injury or sickness, or are receiving the stucture as compensation for a wrongful death or workers compensation)

Everyone knows the energy sapping effect of a large meal. This slump is caused by the body working overtime to digest the large meal you've consumed. Therefore, by switching your usual large meals to smaller, more frequent meals your energy will stay constant and you will be less likely to feel the highs and lows throughout the day as you would from a larger meal. Experts say that that consuming six small meals regulate your energy level and keep you energized for longer, feeling better in the long run throughout the course of your day.  Source: Livestrong.com A Structured Settlement Can Provide a Constant Money Pulse

A structured settlement gives you smaller more frequent guaranteed payments so that your "money pulse" will be constant.

You may be financially healthier if you balance cash needs with periodic payments from a structured settlement or other income annuity so that (1) you will be less likely to feel the volatility of the stock market or bond market (2) mitigate the possibilty that you can completely run out of money through rampant spending (3)  having your need for essential income tied to bad investments (4)  over estimating how generous you can be, or  (5)outliving your income and investments.

Finally, everyone knows that no structured settlement factoring company is literally or figuratively "as fast as the speed of light" .

Alot of it is out of their hands due to variables such as how long documents take to be completed and mandated judicial review. If there is more money mass involved,  do you think the mandatory judicial review will be more or less scrutinizing?

 

 

 

 

Posted at 12:17 PM in Dissipation Risk, Structured Settlement Payment Rights, Structured Settlement Payments |

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Guide to Structured Settlements 2025

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  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
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  • Structured Settlement Payments | Types of Structured Settlements 2025
    In 2025, you can structure your settlement payments in various ways. A structured settlement allows for multiple payment types within one agreement. You can tailor and merge different structured settlement payments to suit your individual needs, either alone or alongside other financial instruments. If desired, diversify your structured settlement by utilizing multiple annuity issuers, treasury-funded structured settlements, index-linked structured settlement payments, and market-based structured options.
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    Structured attorney fees offer a financial strategy that provides a unique method for deferring taxes for attorneys and their firms. Attorneys can structure or defer their legal fees independently of whether the plaintiff structures their settlement. There are various ways to structure attorney fees, including capped or uncapped index-linked structured settlement annuities with payments adjusted according to the S&P 500 or another index's positive changes. Trial lawyers might also opt for a special deferred payment/compensation arrangement if they seek market-based returns without a cap. As the year-end approaches, consider adding structured attorney fee specialist John Darer® to your settlement planning team for 2025.
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  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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Why Take a Structured Settlement?

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