October 25, 2013 – In just about eight more weeks, the 2013 calendar will be ready for the recycle bin.

For contingency fee-based plaintiff attorneys who’ve had a successful year, recycling one of the best-ever tax deferral strategies is also on their minds as 2013 winds down:  Structured Attorney Fees.

Since the passage of the American Taxpayer Relief Act of 2012, our firm has experienced an EXPLOSION of requests from attorneys inquiring about structuring their fees.

Add to that the impact of Proposition 30 in California and similar tax increases in other states across the nation and the importance of effective tax planning for successful plaintiff attorneys becomes clearer.

These various tax hikes have combined to affect so many practitioners this year that structured attorney fees account for approximately 36% OF ALL OUR FIRM’S ACTIVITY so far in 2013.

Structuring fees just makes so much sense for those who qualify.

Yet surprisingly, attorneys who would never dream of leaving money on the table during a negotiation for one of their clients do it all the time when it comes to their own finances.

That’s where we can help.

With the right amount of analysis and planning, attorneys can arrange to structure their fee so that they credit the income in a future year (often, when an anticipated tax bracket will be lower) to maximize tax efficiency.

Add some pre-tax interest earned and most conclude that they simply cannot pass up such a money saving strategy.

So don’t leave YOUR money on the tax table.  Put it in your own pocket instead.  Call us for an analysis BEFORE you finalize your client’s settlement.

October 10, 2013 – With all this talk about quantitative easing, shutdowns, debt ceilings and similar esoterica, it’s easy to lose perspective about interest rates.

True, interest rates might seem low by historical standards but it really depends on your frame of reference.

That’s why we created this one-page flyer for you:  Historical Long-Term Interest Rates

Taking a broader view of history, many people are shocked to learn that precedent exists which makes very real the possibility that interest rates probably aren’t going to be heading too far north anytime soon.

Oh, sure, they’ll probably go up.  Then again, they may go down.  But whatever they do, history is telling us there’s a very good chance they’re going to remain in their current range for awhile.  Possibly for an entire generation.  “Bond King” Bill Gross recently said as much. 

Truthfully, though, only time will tell.

But while bond traders may obsess about interest rate changes, making and losing small fortunes along the way, people who have the opportunity lock into one of the most highly secure, tax-advantaged opportunities ever conceived (aka a structured settlement annuity) should ask themselves one very important question:

“What else am I gonna do with this money?”

If your needs are very short term, then choose cash.

But if you’re seeking safety, security and superior COMPARATIVE rate of return for long-term financial stability, nothing can match the benefits of structured settlements.

When put into place for a personal physical injury, all principal AND interest is 100% income tax-free making the comparative yield significantly better than most bonds.

When a structured settlement is chosen for a personal non-physical injury, all proceeds, principal and interest are taxable; however, because interest is earned on pre-tax dollars otherwise lost in the year of dispersal, the comparative yields can be up to 4-times better than anything else the individual can find without assuming significantly more risk.

This is why so many smart attorneys choose to regularly structure their attorney fees, by the way.

So I hope you find our flyer helpful as you plan for your future.  While you’re at it, check out the entire new BROCHURE section of our website where you can find lots of helpful information in easy-to-read pamphlets.

    “Substitute me for him – Substitute my coke for gin – Substitute you for my mum – At least I’ll get my washing done”

– Pete Townshend –

October 4, 2013 – Ever try to find a good substitute for security?

Betcha can’t.

At least not on synonym.com you can’t.  I tried but all I got was this message:

“Sorry, I could not find synonyms for ‘security’.”

I had to smile when I saw the website’s somewhat allegorical response since it contains meaning beyond its literal apology.

After all, when you’re talking about security, whether physical or financial, is there really anything else that can compare to “the state of being free from danger or threat?”

Structured Settlement Security

Individuals who choose structured settlements when resolving their personal physical or non-physical injury claims are choosing one of the most secure settlement options available.

The entire structured settlements industry was founded with safety and security in mind.  Structured settlements add stability to an unsettling process and provide people with the peace of mind necessary to resume as normal a life as possible following an injury or loss of a loved one.

JUST ADDED TO OUR WEBSITE:

Check out the new BROCHURES section of our website featuring a variety of pamphlets touting the security of structured settlements.

Moral of today’s story:  There is no substitute for security.

So don’t fight the truth.  Just call us next time you have a need to secure your financial future.

October 2, 2013 – For years, I have been working hard to help clients temper their enthusiasm about the prospects of interest rates rising significantly anytime soon.

Even though I wish the message were different, it’s somewhat gratifying when a world renowned “bond king” finally seems to agree with what I’ve been saying for some time:

Interest rates are pretty much going to linger in their current comfort zone for some time.

Here’s the headline and link to the article about the bond, not James Bond, king’s views on the subject from today’s CNN/Money:

Bill Gross: Get used to low rates ‘for decades’

You heard the man. For decades!

Regular visitors to our website and subscribers to our newsletter may recall us sounding this bell four years ago in our September 24, 2009 newsletter with the rather straightforward caption, “Historical Interest Rates.”

You’re a little late to this party, Bill.

When I founded Finn Financial Group in 2009 with the commitment to helping clients achieve long-term financial security, I knew I wanted to do more than simply give someone a structured settlement or annuity policy every once in awhile and send them on their merry way.

I wanted to be a source of trusted advice based on sound, quantifiable research and analytics so they could feel confident when making choices about their future.

In truth, I’m no more or less prescient than the next person since nobody can ever really know what the future holds.  Bill Gross has sure been wrong before.  But I do firmly believe more information is better than less information and I work hard to help people plan for a safe and secure future.

Impact on Structured Settlements and Annuities

Though it may seem counter-intuitive, all this actually bodes quite well for the structured settlement and annuity industries.

In fact, here are two important take-aways from today’s lesson as it relates to these two themes if you accept, as I do, rates are in the range they’re likely to remain for awhile:

Lesson One:  Don’t reject a structured settlement or annuity simply because you believe rates are “too low.”  Factoring in safety, security and tax advantage, the rates are superior to everything else out there of comparable risk in most instances.  And anything you’ll likely be able to find as an alternative in the near future.  (“Near” being relative if we’re talking about decades)

Lesson Two:  If you are anticipating a taxable settlement or attorney fee of any meaningful size, you can be EVEN MORE CONFIDENT that structuring makes sense for you.  That is, unless you enjoy giving away money you could easily keep for yourself.

All this, by the way, assumes the only reason to choose a structured settlement or annuity is rate of return.  When factoring in happiness, peace of mind, security and other more subjective benefits, the desirability of these options becomes even more pronounced.

But that’s a conversation for another day.

Meanwhile, Bill, if you’re reading this, maybe you and I can get together for lunch one of these days to compare notes on this and similar subjects?  Since your PIMCO headquarters is walking distance from mine, we could pull it off pretty easily.

Heck, I’ll even spring for the Bill if you agree to get the TIP. 

(All puns in this post inspired by Leonard Pinth-Garnell)

October 1, 2013 – Day One of the Affordable Care Act mandated Insurance Exchanges.

I am a licensed life and health insurance agent.

Although the majority of business I have conducted since forming my own company in 2009 has involved structured settlements and fixed annuities, I have had one client who, each year, chooses to buy a health insurance policy from me.

His name is Dan Finn.

That’s right.  I sell myself my own health insurance policy.  I do not have coverage provided by an employer or access to any group plans that I’ve tried to find so I need individual coverage.

As one who likes to choose his own doctors but also believes health insurance should be more like car insurance (pay the small stuff yourself, have the insurance for the catastrophes and major expenses), I prefer a high deductible PPO policy linked to a Health Savings Account (HSA).

This risk sharing just makes financial sense to me.  For both sides.

I can keep premiums a little lower, pay expenses I do owe out of a tax-advantaged HSA, see the doctors I want (mostly) and if anything terrible ever does happen, I limit my out of pocket risk and can rest assured I’ll be taken care of.

Up until today, that policy was pretty expensive though.  Truthfully, I was actually lucky I could even get it at all.

That’s because of a certain baggage I bring with me to the health insurance application process.

Having had a few skeletal makeovers in recent years, I fell into the “we really don’t want you here because of your stinkin’ pre-existing conditions” category and had to pay a higher premium for the privilege of the coverage I’d always enjoyed when I was part of a group plan.

Even though my bilateral total hip replacement and double-level cervical fusion surgeries were successful (Steve Austin’s got nothin’ on me!), to the health care actuaries, I was a mere pariah who carried such an increased risk of siphoning off resources from the system that they had no choice but to raise the price of my personal membership dues.

This happens to individual policyholders.  At least, it used to.

Now that the Exchanges are open for business, I just priced a new policy for myself with essentially the same coverage.  Slightly higher deductible, slightly lower total out of pocket maximum but comparable co-pays and benefits.

And guess what?

My insurance premium will be ALMOST HALF of what I have been paying these past few years.  For the same coverage!  45% less to be precise.

As evidenced by the goings-on in Washington this past week, opinions about the viability of “Obamacare” vary considerably.  It’s far too soon to tell how successful the law will or won’t be.  But from my seat, based on my own personal experience, I’m kind of OK with it.