A structured settlement will appeal to an individual who is in or near retirement age, especially if he/she plans to use the settlement proceeds to supplement their income. Typically, such an individual will be risk adverse and attracted to the safety, security, and guarantees inherent in a structured settlement.

Another significant factor is that earnings within "annuities" are not considered in the calculation of taxes on Social Security income unlike earnings accumulating in CD's, Municipal Bonds, Mutual Funds, etc. The payments can be designed to maximize current income, as well as provide estate estate planning strategies for tax-free income to beneficiaries such as a spouse, children, or grandchildren.

Here is an example of what can be done:

A married couple, age 60, has $200,000 to invest. One option is to provide an income tax-free monthly benefit of $1,221.54 at retirement (age 67) for as long as either one of them is living, with a 15 year guarantee. The advantages:

  • Both claimants can count on monthly income for their entire lifetimes;
  • The level of monthly income is greater than what can safely be obtained from other conservative investments;
  • If both claimants die prematurely, the remaining guaranteed monthly payments can be paid to children or grandchildren.

    We can design numerous plans to fit your individual client's needs.