May 15, 2013 – A note of appreciation to one of my colleagues in the structured settlements industry and best selling author, Don McNay, for calling my attention to an interesting article appearing in The Lane Report, a periodical focusing on business and economic issues in and around Don’s home state of Kentucky.

The article, “Pike County economy gets $54 million boost each year from pensions,” sheds light on a little talked-about economic reality:

People receiving regular, ongoing cash flows stimulate economies!

Much is written about the benefits of steady income, whether from pension, structured settlement or Social Security payments.  So much so that most of us can extol their benefits in our sleep:

Makes it easier to pay your bills;
Safe, secure cash flows help lower stress;
Steady income creates peace of mind;
“Protects the needy from the greedy” (to quote attorney Joe Jamail);
And so on

But the focus of all the dialog is almost always on the benefits to the recipient of the cash flows.

This article goes a step beyond, quantifying the benefit of guaranteed cash flows to the broader economy.

Big lump sums might be nice.  For a short while.

But when windfalls are spent, what then?

Who benefits when individuals no longer have the means to take care of themselves because they have no cash flow?

Not them.  Not their families,  And not their economy.

Even though people spend about one-third of their lives sleeping, you’d never consider going to sleep in 2013 expecting to wake up twenty-five years later, would you?  (Although this option would have appealed to a number of my college friends)

And for the same reason it’s healthier to eat several small meals during the course of a day than it is to consume all your calories in one sitting, it’s better to have your financial means spread out over time.

All of this speaks to the wisdom of the “slow and steady wins the race” philosophy.

Pensions, structured settlements and retirement annuities.  The Big Three of safety and security.

By the way, this article just emphasizes the benefits of pensions payments to one county in one state.

Imagine what happens if we extrapolate these statistics across the entire country and include structured settlement and annuity payments?

That’s a lot of economic stimulus that doesn’t cost the taxpayer a dime.

So, in a way, it’s not just a pretty good idea to choose a structured settlement instead of a lump sum when anticipating a personal injury settlement.

It’s practically your patriotic duty to do so!