by John Darer® CLU ChFC CSSC RSP CLTC
I was at a social gathering recently when one of the guests approached me and related that his CPA is suggesting that he purchase structured settlements for his retirement plan.
Of course what we're talking about is structured settlement receivables not annuities. And they are not annuities.
I've reported here that the purchase of structured settlement payment rights is no longer simply the province of hedge funds and big European banks. According to our sources and research, personal injury lawyers have bought them, grandma and grandpa have bought them and some sophisticated financial strategies involving Roth IRA conversions are afoot according to a Massachusetts fianncial planner.
Some in the structured settlement industry are fearful that the widespread knowledge of these strategies could affect Congress' view of the tax exclusion for injury victims that is essential to making structured settlements work.
Yet these strategies are already out there, entering the mainstream by being offered in many cases by credentialed financial advisors to clients seeking stable income alternatives to low interest rates on CD and Treasuries.
One of our sources tells us they are enjoying record activity at this time. The structured settlement watchdog believes that in a fair system, to the extent possible, these cash flows should be channeled to other injury victims.
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