by Structured Settlement Watchdog®
StructuredSettlementnews(dot)com) really blows at structured settlement facts.
They can't even get the fundamentals right. According to structuredsettlementsnews(dot)com, the following is a structured settlement fact:
"Discount rate – It is the ratio of the over-all amount of the money you get. Suppose, you are eligible to $100,000 of a lawsuit. And you choose to sell or cash it out with 10% discount rate to a corporation or a broker. So now the overall cash you get is $90,000 and the charge or fee billed by the broker is $10,000".
Unfortunately 11,275 poor souls read this nonsense.
The True Structured Settlement Facts on Discount Rates
1. A discount rate is a part of the calculation of present value when doing a discounted cash flow analysis for payments to be made in the future. A discount rate might be used by an economist to value a life care plan. A discount rate is used in the present value calculation as part of a determination of what a buyer is willing to offer a seller of structured settlement payments.
2. A Discount Rate is not a ratio
A ratio is the quantitative relation between two amounts, expressed as the number of times one value contains or is contained within the other.
Examples
- They outnumbered us two to one.
- In a Margarita there is a two to one ratio of tequila to Cointreau
Notwithstanding the absent nous on show by structuredsettlementsnews(dot)com, the supposition is not characteristic of the typical structured settlement factoring transaction. Anytime you sell structured settlement payments it's always a money loser. You will receive pennies on the dollar 100% of the time.
Postcript: Less than two months following this blog post, the website structuredsettlementnews(dot)com is inactive. A lot of these wannabe structured settlement resources are written by authors with no professional credentials relevant to the subject of structured settlements.