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September 01, 2014

Einstein SS Dispenses Bad Financial Advice on Debt Management

by Structured Settlement Watchdog™

Einstein Structured Settlements is exposed once again for bad advice on helping a family get out of debt.  Here's what they say:

"Paying off $15,788 in credit card debts can effectively increase a family’s yearly income by $15,788 a year. Instead of an increasing spiral of debt, the family can have fewer bills and more cash in the bank"

Earlier in its post, Einstein had mentioned that "credit card debt had an interest rate of 14.8%, which means the average family’s credit-card debt loan will increase by $2,333.66 if they only pay the minimum due on the credit cards".  [document on file]

Comments

Stating the obvious, that has somehow been over Einstein's head,  if the annual interest is $2,336.62  (14.8% times 15,788) then paying off the debt means that it can effectively increase cash flow by $2,336.62 annually, if no more debt is incurred. Cash flow is the pattern of income and expendituresand the resulting availability of cash.

If you sell your payments to pay off debt you are trading income for cash. You are accepting a reduced cash flow in the future for your lump sum now to help pay off debt.  In some cases, where people sell off all their future structured settlement payments they will have no income.  Either way paying off the debt does not result in increased income.

If you still want to work with Einstein because you think the pictures of Einstein are cute,  that's your prerogative.  But you don't have to "take the crap". Einstein structured settlements on debt

 

You're probably better off seeking advice from settlement advisors with licenses and real  credentials. 

 

Image: © Andrei Krauchuk | Dreamstime.com

 

Posted at 12:25 AM in Financial Literacy, Financial Planning, Social Media "Road Kill", Structured Settlement Factoring News |

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Guide to Structured Settlements 2023

  • What is a Structured Settlement? What You Need to Know
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    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
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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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    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
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    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
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  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • 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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