by John Darer CLU ChFC CSSC
Andy Stern author of "A Country That Works: Getting America Back on Track" says (as reported in today's Parade Magazine) only 20% of Americans have enough in savings to survive three months of unemployment. Moreover not even 25% have enough put aside to pay for some major emergency (he states on average $3,313 in out-of- pocket costs). Stern's Service Employees International Union and the Center for American Progress commissioned the study.
Setting up a reserve fund is a good idea, particularly for those receiving a settlement. Even if you have grand ideas for your settlement money or perceive yourself as risk taker, a structured settlement which provides a steady (or increasing) guaranteed tax-free payment stream to pay all or part of the mortgage or rent, medical insurance premiums , deductibles and co-pays will give you a strong core financial foundation to fall back on. A structured settlement does not have to be all or nothing. It can also be a "stepping stone" to assist you in making these payments and greater financial security.
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