by John Darer CLU ChFC MSSC RSP CLTC
Some structured settlement annuitants are being solicited by cash now pushers and their tag team partners to sell their structured settlement payment rights and take the discounted lump sum of cash and put it into commericial real estate or even mutual funds.
Why would you go from safety to risk, or even speculative risk in some cases, at a time when In commentary about the Billonaire Census conducted by UBS and Wealth-X, CNBC's Robert Frank reports September 22, 2014, that "Billionaires are holding mountains of cash, offering the latest sign that the ultra-wealthy are nervous about putting more money into today's markets (emphasis added). Indeed, billionaires' cash holdings far exceed their investments in real estate"
"Members of this global elite are stashing an average of 10 times more than a year ago".
If someone is advising you to "quit" your "steady job" with a "steady paycheck" (sell your structured settlement) and put your "severance" money into mutual funds consider that "in today's increasingly frothy market environment, and after the hangover of 2009, today's billionaires prefer a return of their assets rather than a return on assets. And in fact, they may be happy with a small loss rather than risk a larger one".
"I am more concerned with the return of my money than the return on my money" Mark Twain