by John Darer CLU ChFC CSSC
On March 16, 2008, The Wall Street Journal early edition reported that the once venerable Bear Stearns brokerage house has been sold to JP Morgan Chase for $2 a share. At its high in January 2007 the shares were priced at $170 per share.
Thoughts for Consideration
- Had you invested $100,000 of settlement money in the stock of Bear Stearns at $170 per share in January 2007 and held it until March 2008, your investment would be worth approximately $1,176. That's one
of an investment!
- Had you sold your structured settlement payments in the secondary market for a discounted amount of cash now in January 2007, because someone told you about "a great investment opportunity" (which happened to be Bear Stearns stock) and you sold your annuity payments, bought and held the investment in the stock through today, you would have been a two time loser. You would have effectively destroyed a safe secure program, taken the discounted amount of cash and it would now be worth less than 2% of the amount you subsequently invested!
- Had you taken the $100,000 and placed it in an annuity or Treasury Funded Structured Settlement in January 2007 you would still be receiving your payments without reduction.
Structured settlements provide income tax free*, secure and guaranteed periodic payments.
*where payments represent damages for personal physical injury, physical sickness, workers compensation or wrongful death as defined in IRC 104(a)1(1) and IRC 104(a)(2)
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