Structured Settlements or U.S. Treasuries for Better Yields?

Structured Settlements or U.S. Treasuries for Better Yields?

May 27, 2016 – Yesterday the United States Treasury sold $28 billion worth of 7-year notes.

Probably safe to assume the collective wisdom of those doing the buying don’t believe rates are going to improve anytime soon. Otherwise, they’d sit on the sidelines and wait for a better bargain, wouldn’t they?

The 7-year Treasury yields were 1.652%.

Twenty-eight billion dollars.

One point six-five-two percent interest.

Combined, this seems a pretty good indication lots of investors are choosing safety and security over risk and aren’t anticipating any wholesale rate improvements anytime soon.

Too bad those folks can’t buy structured settlements directly since a structured settlement designed to mirror a 7-year Treasury is currently yielding about 2.15%.

In other words, when compared to Treasuries, a structured settlement would yield investors about 30% more money!

Apples to appelz

AmbroUnited States Treasuries are widely considered the ultimate risk-free investment. Buyers know promises will be honored.

Much of the same is often said about structured settlements.

Backed by some of the highest rated and most well capitalized life insurance companies in the world, structured settlements offer peace of mind to people who choose them because future payments are being promised by companies that have been in business an average of over 125 years.

Maybe they aren’t exactly the same color but it’s not a stretch to compare Treasuries to structured settlements.

Both pay interest that is 100% income tax-free and both are unmatched in terms of financial security.

To be clear, structured settlements aren’t guaranteed by the federal government. Insurance is, after all, regulated by the states. But with the many consumer protection laws in place for structured settlements and the state guaranty funds established, it’s hard not to draw safety and security parallels.

With structured settlements providing higher returns than Treasuries, those who qualify for them are uniquely positioned to take advantage of one of the best settlement options available.

Post-settlement asset preservation should always be a primary goal of anyone settling a personal injury claim.

By dedicating some portion of one’s recovery to a structured settlement, anyone settling an injury claim can feel confident they’re making a smart choice.

PSĀ  Works great for attorneys who structure their fees also!


Finn Financial Group