Sometimes a picture (or in this case a chart) is worth a thousand words. MetLife has just published a comparison between structured settlements and other types of investments.
Besides structures, the investment product comparison list includes cash, trusts, municipal bonds, investment portfolios, CDs, Treasury bonds, real estate and 529 College Plans.
It looks at whether the investment type meets certain criteria. Does it guarantee returns, provide tax-free or lifetime income? Is it free of ongoing costs and additional upkeep? Does it offer cost-of-living adjustments? Is it safe from market fluctuations? How about liquidity?
Structured settlements check off all of the boxes (except liquidity). Coming in a somewhat distant second (a tie) were Treasury bonds and 529 College Savings Plans.
For claimants with little or no investment experience, the decision of where to place their settlement funds can be an overwhelming task. It’s why claimants often lose much of their settlement in ill-advised investments or rely on less-than-trustworthy people with their money who promise them unrealistic returns.
If you’d like to discuss structured settlements in general or a particular case, please give me a call.