by John Darer CLU ChFC MSSC CeFT RSP CLTC
Make good use of stuctured settlements and build enduring
guaranteed income streams
Labor Day 2023 is here and you, but lawyers and their clients don't need to labor too hard to find great structured settlement rates. Compelling yields in Excess of 5% are possible on intermediate and long term cash flows.
So what does 5% tax-free mean?
Taxable Equivalent Yields at Different Hypothetical Tax Rates
What about investing in the Stock Market?
Well you're not going to put all your eggs in one basket are you? But let's say you did and if you had the fortitude to ride the ups and downs and stay in the S&P 500 from January 3, 2003 to December 31, 2022 you would have averaged 9.80%.
However, if you missed just the 20 biggest trading days in the S&P 500 from January 3, 2003 to December 31, 2022, you would have averaged only 2.9%. If you missed the 30 biggest trading days the averag would onl have been 0.8% (and it goes downhill from there), according to the J.P. Morgan Asset Management 2023 Retirement Guide published March 2, 2023 p46.
Read Structured Settlement Rate of Return Compared to Alternative Investments (4structures.com) for more details.
Note: Structured settlement rates vary by insurance company and other factors such as duration. Read more about structured settlement quotes