Despite a recent pause in interest rate hikes, Federal Reserve Chairman Jerome Powell recently announced that more rate hikes are on the way this year in an attempt to slow inflation further. While this is bad news for those who are seeking a mortgage or car loan, it’s good news for personal injury claimants.
Annuity Yields. Structured settlement annuities base their yields primarily on Treasury securities and other safe investments. Ten-year Treasuries are currently yielding about 3.7 percent—compared to just .69 percent in June 2020. Annuity returns are guaranteed so claimants never have to worry about market fluctuation affecting their settlement payments. The real rate of return is even higher since structured settlement payments to personal injury claimants are state and federally tax free. And, the payouts can be adjusted to account for any increase in inflation.
If you have questions about structured settlement annuity products, give me a call. We can discuss current returns and long-term strategies.