A Challenge Even For Nobel Prize-Winning Economists
You would think that Nobel Prize-winning economists would know how to invest their award windfall. For most, it’s the largest single sum of money they will ever receive. Yet, according to an October 11 MarketWatch article, some of these economists have “fizzled away” much of their winnings.
If the best economists in the world have trouble managing sudden large sums of cash, just imagine how an injured plaintiff, with little or no financial experience, would fair after receiving a large settlement. One economist said he splurged on clothes, travel and “lavish furnishings.” Another said a good part of his winnings went to friends and relatives who travelled with him to Stockholm to see him receive his award.
While the economists interviewed made light of their spending, for injured plaintiffs, their settlement is serious business and often critical to their family’s financial security. There must be enough money to pay for day-to-day living expenses, medical costs, college tuition and other large and small purchases. A structured settlement gives plaintiffs a specific long-term plan with guaranteed tax-free income to make sure expenses are met. The structure also removes the temptation to make impulse buys and provides the ideal excuse to say no to relatives or friends looking for a handout.
For more information about structured settlements, feel free to give me a call