If you or a loved one has been in an accident resulting in a personal injury and you are in the process of negotiating a settlement, you are about to make decisions that could impact you financially for the rest of your life.
Depending on the extent of the injury, you're ability to earn income for you and your family may have been cut short or stopped depending on the severity of the injuries. The result will be that you will receive compensation. This could be a few thousand dollars to hundreds of thousands of dollars. The issue is what do you do with that money? The facts are that most people burn through that money in less than five years. Ninety percent lose the money.
Jeff Booth: So what is a structured settlement annuity? Thankfully our congress recognized the problem and in 1982 amended the tax code to provide 100 percent of every structured settlement annuity to be exempt from federal and state taxes. To qualify, the money must be taken in the form of a structured settlement annuity. An insurance company receives the lump and sends you a tax free check as agreed to. So it is a financial plan for an injured person.
Jeff Booth: So why take a structured settlement annuity versus a lump sum? In today's financial market, if you were about to awarded $25,000 or $2,500,000 what would you do with the money? Buy that large flat screen TV, that new car you have been waiting for and surely "friends" would come forth to provide you many suggestions.
But instead you met with a member of our team and developed a financial plan that would provide you $6,000 per month increasing annually four percent compound interest to keep pace with inflation and guaranteed for life or 30 years, whichever is longer. In addition, you and your wife want to guarantee your new child the best education from preschool through college. So you agree to the following:
For each year in life, $72,000 with a 30 year guarantee and each year it would increase by four percent.
For preschool through high school, you would be guaranteed $24,000 for 12 years also with four percent annual increases.
And for college $50,000 for five years would be increased for inflation of percent.
With a structured settlement annuity the above can be completed with a settlement of $2.5 million. You would be guaranteed an income of $5.1 million. And if you lived to life expectancy, you would receive $8.2 million and again all tax free.
I am not wishing anyone to be faced with a personal injury, but if it did happen, it is important to make prudent decisions and you could have your income replaced with guaranteed raises and the best education for your child all tax free, that would be tremendous peace of mind.
Depending on the extent of the injury, you're ability to earn income for you and your family may have been cut short or stopped depending on the severity of the injuries. The result will be that you will receive compensation. This could be a few thousand dollars to hundreds of thousands of dollars. The issue is what do you do with that money? The facts are that most people burn through that money in less than five years. Ninety percent lose the money.
Jeff Booth: So what is a structured settlement annuity? Thankfully our congress recognized the problem and in 1982 amended the tax code to provide 100 percent of every structured settlement annuity to be exempt from federal and state taxes. To qualify, the money must be taken in the form of a structured settlement annuity. An insurance company receives the lump and sends you a tax free check as agreed to. So it is a financial plan for an injured person.
Jeff Booth: So why take a structured settlement annuity versus a lump sum? In today's financial market, if you were about to awarded $25,000 or $2,500,000 what would you do with the money? Buy that large flat screen TV, that new car you have been waiting for and surely "friends" would come forth to provide you many suggestions.
But instead you met with a member of our team and developed a financial plan that would provide you $6,000 per month increasing annually four percent compound interest to keep pace with inflation and guaranteed for life or 30 years, whichever is longer. In addition, you and your wife want to guarantee your new child the best education from preschool through college. So you agree to the following:
For each year in life, $72,000 with a 30 year guarantee and each year it would increase by four percent.
For preschool through high school, you would be guaranteed $24,000 for 12 years also with four percent annual increases.
And for college $50,000 for five years would be increased for inflation of percent.
With a structured settlement annuity the above can be completed with a settlement of $2.5 million. You would be guaranteed an income of $5.1 million. And if you lived to life expectancy, you would receive $8.2 million and again all tax free.
I am not wishing anyone to be faced with a personal injury, but if it did happen, it is important to make prudent decisions and you could have your income replaced with guaranteed raises and the best education for your child all tax free, that would be tremendous peace of mind.
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