by Structured Settlement Watchdog
Add financial writer Fairlane Raymundo to the "experts" who have failed to pick up on Bronx Judge Norma Ruiz' mischaracterization of the discount rate in last year's Feliciano decision, in which she denied Peachtree "the juice".
In a "timely" report that comes some 8 months after the decision, Fairlane Raymundo states January 9, 2011:
"Let us go through the math to give the statement the proper context.
The discount rate of this transaction was 17.9% effective. Peachtree used the gross net amount of $19,540 prior to deducting $2,200 of legal fees charged to the annuitant to calculate the discount rate. This is against an established but informal rule of including the legal fees in the initial quote.
The discounted present value of $60,677 with a net payout of $17,340.00 would result in a final discount rate of 71.40%. This is more than twice what the whish (sic) banks are charging".
In the immortal words of Ford Fairlane "Have a twinkie snapperhead!"
Structured Settlements 4Real has already explained why the 71% figure stated by Judge Ruiz is grossly inaccurate. While Judge Ruiz deserves some slack because she didn't have the luxury of the extensive commentary surrounding the decision, Raymundo does not.
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