Every bear market feels like the end of the world. As a plaintiff attorney, a bear market looming on the horizon may leave you scrambling to protect your clients, keep your firm’s finances in order and trying to manage your own retirement nest egg, but the reality is we’ve been here before and we’ll be here again.
Surviving a volatile financial market comes down to one thing: diversification. If your clients have been taking their settlements in cash or you have been accepting your contingency fees in a cash lump sum, it’s time to get educated on alternatives and rethink your game plan.
Challenges Facing Claimants
Injured claimants face a variety of obstacles when settling a case, regardless of the state of the economy and regardless if they are trying to protect their retirement or they are just starting to invest. Claimants accepting lump sum cash settlements during volatile financial times are even more susceptible to:
- Family and “friends” asking for money
- Predatory financial “advisors”
- Emotional spending
- Poor investment choices
- Loss of needs-based government benefits.
Structured Settlement Annuities: Long Term Safety & Security
A structured settlement annuity provides what no other financial product can promise: a guaranteed1 safety net during difficult financial times. Kiplinger’s agrees. In a recent article, the personal finance site listed annuities as one of the top five tools to make retirement savings last. By utilizing structured settlement annuities as a reliable revenue stream to cover basic living expenses, the remainder of a portfolio can be diversified to include more aggressive investments. Even the structured settlement annuity payments can be reinvested down the line to offset current low-interest rates.
Diversification Options for Plaintiff Attorneys and Claimants
By working with your trusted Sage settlement consultant, you and your clients have access to a range of financial vehicles that can help create a diverse portfolio that balances safety and growth potential.
Insurance-Based Options
- Structured Settlement Annuity: Flexible payment design, guaranteed1 payments, no overhead or annual fees
- Deferred Income Annuity (DIA): Payments starting after 12 months, guaranteed and lifetime payments, no underwriting
- Fixed Indexed Annuity (FIA): Lump sums, lifetime or annuitization (period certain & life) with a guarantee of principal and upside tied to an index (S&P 500 or similar)
- Multi-Year Guaranteed Annuity (MYGA): Fixed-rate and guaranteed payments for a specific term, guarantee a return of principal
Market-Based Options
- Settlements Plus™: For the injured plaintiff looking for tax-free income and market-based returns, and the ability to use their own financial advisor
- Fee Structure Plus®: For any contingency fee attorney looking for tax-deferral, market-based returns, and the ability to use their own financial advisor
- Investment Accounts: Low-cost platforms offering financial education and investment management services
- Special Needs Trusts, Pooled Trusts, Minors’ Trusts, Settlement Preservation Trusts and more: Depending on the claimant’s age, individual needs, income, and level of disability, options are available to preserve settlement proceeds while providing for life’s necessities
Contact Sage Settlement Consulting Today
The verdict? Don’t panic and don’t let fear get the best of you and your clients. By taking a proactive approach, you can face any financial downturn with confidence in your financial choices. Contact Kimberly Overby today to learn more.
1 Guarantees are subject to the claims-paying abilities of the issuing insurance company.
