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The Attraction To Structured Settlements 2017

Date post: 14-Apr-2017
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STRUCTURED SETTLEMENTS IN 2017 ARE STRUCTURED SETTLEMENTS STILL RELEVANT? By John Darer® CLU ChFC MSSC RSP CLTC Sudden Money® Advisor 4structures.com® LLC
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Page 1: The Attraction To Structured Settlements 2017

STRUCTURED SETTLEMENTS IN 2017

ARE STRUCTURED SETTLEMENTS STILL RELEVANT?

By John Darer® CLU ChFC MSSC RSP CLTC Sudden Money® Advisor

4structures.com® LLC

Page 2: The Attraction To Structured Settlements 2017

A Few Things Structures Have Outlived

Page 3: The Attraction To Structured Settlements 2017

A Structured Settlement Is…

• A core tool in the settlement tool chest • Like a ‘job’ that you can never be fired

from. [ without taxes on most damages in PI/WD cases, also WC]

• A way to reduce cost of an MSA by 20-30% • A way to defer taxes for taxable damages

or attorney fees payable to individual lawyers or law firms

And that’s for starters! ©4structures.com®LLC 2017

Page 4: The Attraction To Structured Settlements 2017
Page 5: The Attraction To Structured Settlements 2017

Where Structured Settlements Fit In the Settlement Tool Chest

STRUUCTURED SETTLEMENTS

WEALTH MANAGEMENT

TRUST ADVISORY

• Structured Settlements • Settlement Planning • Sudden Money ®Transition Planning • New York CPLR 50B Structured

Judgment Expertise Analysis/ Projections

• Mediation Support • Structured Legal Fees • Attorney Fee Deferred Comp • Structured MSA • Settlement Trusts • Funding Agreements for B2B disputes,

environmental, commercial litigation • Structured Installment Sales • Life Insurance • Life Insurance Conversions for LTC • Life/Viatical Settlements • Law Firm Buy /Sell Ins, • Disability Buyout Ins. • Long Term Care Ins. • LTC Annuity • LTC Life Insurance • Medigap Insurance • Medicaid Compliant Annuity • Longevity Insurance • Indexed Annuities , Indexed Linked

Structured Settlement Annuity • Deferred Income Annuities, SPIAs

TRANSITION PLANNING

Page 6: The Attraction To Structured Settlements 2017

Why People Allocate to Structured Settlements

• Address Longevity Risk • Risk Tolerance • Backed By Regulated Insurance Product • Tax Benefits • Interest Rates

©4structures.com®, LLC 2017

Page 7: The Attraction To Structured Settlements 2017

Structures Address Longevity Risk

HOW LONG? HOW FAR? ©4structures.com LLC 2017

Page 8: The Attraction To Structured Settlements 2017

Stable Income For Life, or As Long as You Like

©4structures.com®, LLC 2017

Page 9: The Attraction To Structured Settlements 2017

Longevity Insurance Backed by Life Insurance Companies With Lots of Longevity

• New York Life Insurance Company (C19th) • MetLife (C19th) • Pacific Life Insurance Company (C19th) • Prudential Ins. Company of America (C19th) • US Life Ins Co. in City of NY (C19th) • Liberty Life Assurance of Boston (105 yrs) • American General Life Ins. Co. (102 yrs) • United of Omaha (80+ years) • Berkshire Hathaway/Natl Indemnity (75+ years)

©4structures.com®LLC 2017

Page 10: The Attraction To Structured Settlements 2017

Tolerance For Ups and Downs

FUN NOT SO FUN

©4structures.com LLC 2017

Page 11: The Attraction To Structured Settlements 2017

Fine Margins in Risk Tolerance

Faced with these margins, many people find structured settlements attractive

4structures.com® LLC 2017

Page 12: The Attraction To Structured Settlements 2017

Are Annuities a Passing Fad?

Annuities actually go back 2,000 years, underscoring the immutable fact that

annuities have outlived centuries of passing fads

Page 13: The Attraction To Structured Settlements 2017

Condensed Hx of Annuities

• Origins in Roman Empire (27BC-476AD), from Latin “ Annua”

• Middle Ages- Tontine policies, the ultimate ‘Dead Pool’. Popular with wealthy investors.

• 1759 introduced in America as retirement pool for church pastors

• Ben Franklin left annuity to City of Boston in his will that paid out until the 1990s!

Page 14: The Attraction To Structured Settlements 2017

Condensed Hx of Annuities • 1929 Stock Market Crash Safe Havens Sought • 1952 First Variable Annuities • 1975 Structured Settlement Early days in USA • 1982 Periodic Payment Settlement Act • 1985 New York CPLR Article 50A • 1986 New York CPLR Article 50B • 1995 Lump Sum Commutation Rider at Death PLR • 1997 Non qualified assignment facility established by Liberty

Mutual • 1999 Variable Structured Settlement PLR • 1995 Structured Medicare Set Aside • 2008 Non Qualified Assignment PLR (Taxable Damages) • 2014 Index Linked Structured Settlement

Page 15: The Attraction To Structured Settlements 2017

Interest Rates

• Observed to be a secondary consideration for most

• Interest rates have been improving • Structured settlements are part of an

allocation in PI/WD cases • Huge tax leverage on taxable damage

cases

Page 16: The Attraction To Structured Settlements 2017

Are Structured Settlements Still Relevant?

OF COURSE THEY ARE!


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