by John Darer CLU ChFC MSSC CeFT RSP CLTC
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To Structure or Not to Structure?
“To structure or not to structure”—that is the question that frequently stirs the thoughts of claimants, plaintiffs, and the legal counsel or advisers guiding them as a lawsuit approaches its conclusion.
Generally a structured settlement for children, or people with substantial impairments, is automatically considered.
But how about structured settlements for seniors and other adults, the survivors of a person who has died and those whose friend has made some money in the stock market and thinks they will have the same luck***?
Bob LeClair’s Finance and Markets Email Newsletter 4.22.2006 reports that despite the generally positive stock market, only twelve of the twenty most widely-held stocks are up for calendar 2006. On the plus side, Cisco Systems leads with a +20.8% gain, while Intel brings up the rear with a decline of -23.6%.
The above is interesting statistic for a plaintiff or plaintiff attorney faced with a decision to accept or reject a structured settlement as part of the resolution of the claim or lawsuit.
Accept a structured settlement for contractual guarantees with no volatility**.
**For further discussion on volatility have your structured settlement consultant run a Monte Carlo Analysis. If you are considering a lifetime of need be sure that your structured settlement broker, consultant, planner or adviser uses a software package which takes into account the mortality variant.
*** e.g. during the 2000 stock market mania when stocks were such a popular discussion topic it was not unusual for literally anyone to offer a stock tip whether qualifed or not. Many people invested without an understanding of the risks.
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