by Structured Settlement Watchdog
Structured settlements provide money now and money later through safe, secure guaranteed income. I often use the analogy that a structured settlement is like a job you cannot be fired from. For those who are unemployable due to physical injuries, physical sickness or are otherwise unable to work or work as productively as before, structured settlements can contractually guarantee income for the rest of their lives.
When you agree to a structured settlement, you are trading receiving a lump sum for a legal contract from a well capitalized insurance company to pay you a customized stream of payments that are tailored to your needs. If you have a structured settlement and your income begins right away you truly have money now and money later. And if your structured settlement payments are for damages on account of your physical in jury, physical sickness, a loved one's wrongful death or workers compensation, subject to IRC 104(a), the payments are income tax free
This image the hourglass (left), used in an advertisement for a company that seeks to get consumers to sell structured settlements to them or a discounted lump sum, demonstrates how a cash lump sum can dissipate in a short period of time. This problem compounds for consumers that trade long term financial security for themselves and their families by selling their structured settlement payments for a discounted lump sum to companies like Client First Funding that use the money now or cash now concept.
Without a budget or control of expenditures, the financial viability of sellers of structured settlement payments rights may very well emulate the top chamber of the hour glass, dribbling out slowly until there is no more left.
In using the ad, Client First Funding simply turns the tables on itself, just as it did in 2014, when it asked "if we have been back to our favorite beach lately only to find there's not much sand left?" The analogy was used in an apparent attempt to unsettle structured settlement annuitants about "inflation and other economic forces". They say the longer you wait for your money the less it it will be worth in a website page on "key concepts". The inflation they predicted is still less than the internal rate of return on a long term structured settlement. We hoisted them on their own petard then as we do now. Sweet!