Memorial Funded by Structure Will Help Motivated Students

The 2022 bear market – which began officially on June 13 – should serve as a stark reminder of the exclusive advantages available to injured people and their families through a structured settlement. Steady, predictable income is the equivalent of financial oxygen for accident victims. Impairing its flow can make things very unpleasant very quickly. Imagine what it’s like to depend on a fixed income and receive monthly statement after monthly statement showing your portfolio (and future security) withering to a fraction of what it once was.

Regardless of interest rates, a structured annuity has – and always will be – KEY to a balanced investment allocation that includes liquidity, guaranteed income for necessary expenses, and non-guaranteed investments to manage the risk of inflation (when appropriate). Because:

• Income is guaranteed by annuities backed by the general portfolios of major insurance companies.
• Earnings and payments are tax-free thanks to a congressionally-granted exception ONLY available to injury victims.
• Returns are not subject to ongoing investment management expenses.
• There’s protection from emotional decision-making at a vulnerable time, especially when well-meaning (and often, not so well-meaning) relatives, friends, neighbors, etc., are involved.

And perhaps most important of all, smiling your way through all the roller-coaster market plunges, knowing your most important obligations are covered, like mortgage or rent payments, college tuition, future medical costs, and other basic expenses. No wonder people receiving guaranteed income via annuities are happier and healthier, as we wrote earlier.

But Hey, How About Those Interest Rates?

Despite all the built-in advantages of a structured settlement, people may think they can do better in the market. Never mind that average investors generally UNDERPERFORM the market by 3 to 4 percent. Add in taxes and management fees, and market-based portfolios struggle to match annuity-based structures over the long haul, even when bond rates are low.

Structured settlements may not be as exhilarating as a bull run in the stock market, but when the bear roars as it has thrice since 2000, the resulting market losses should remind us that GUARANTEES can be worth their weight in gold and quality of life. Contact your RINGLER consultant for help with the latest in settlement planning fashion – structured settlements.