January 31, 2013 – While most parties involved in settling Workers’ Compensation claims are familiar with the concept of Structured Medicare Set-Aside Arrangements (MSAs), it remains a surprisingly underutilized approach to satisfying the parties’ obligations under the Medicare Secondary Payer (MSP) laws.

That’s why we were pleased to read the straightforwardly titled “The Value of Using Structured Settlements When Addressing Medicare Set Asides” published on Amaxx Risk Solutions, Inc.’s website yesterday.

The article hits all the high notes and provides an excellent example of how MSAs can work to the advantage of both parties:

Because the structured MSA can potentially lower the cost of satisfying the MSP obligation, the defense can benefit in cost savings.

Because the structured MSA can “free up” some of the settlement dollars, the injured worker can potentially end up with more cash at settlement while ensuring medical needs are properly addressed.

We compliment author Rebecca Shafer, JD on a terrific piece on a timely topic.

For additional information on structured settlements and for MSA quotes, please call us anytime we can help.

January 31, 2013 – A few days ago, we passed along the news that A. M. Best has just upgraded the outlook for American General Life from stable to positive.

We cheered that good news.

Today, we’re cheering even louder because of the 2 minute YouTube video we just watched which was produced by American General and is 100% dedicated to structured settlements.

We don’t want to take up any more time talking about this today.

We just want you to grab your popcorn  and join us in saying . . .

“THANK YOU American General!”

. . . for your commitment to the structured settlements industry and all the people it helps.

January 30, 2013 – At first blush, this may seem like news to yawn about.

But today’s close of the 10-Year Treasury yield above 2% for the first time in nine months is important for a couple reasons.

Reason One

Today’s close at 2.03% means the yield is 42% better than it was at its bottom of 1.43% six months ago.

This may be bad news if you are a bond investor since rising yields mean loss of investment value but for those who are only looking for future guaranteed benefits from fixed products like structured settlements, it means you get appreciably more “bang for your buck.”

Reason Two

If you look at the longer term historical trend line, it looks like the yield bottom may finally be in our rear view mirror.  Only time will tell for sure but it’s starting to look like investors are feeling progressively bearish toward bonds.

This will only bode well for structured settlement recipients going forward.

Reason Three

Small movements are BIG movements.  Let me explain:

A 0.5% rise when yields are at 5.0% means you’re only getting about 10% more money per purchase dollar; however,

A 0.5% rise when yields are at 1.5% means you’re getting about 33% more money per purchasing dollar.

Moral:  At these levels, learn to celebrate small movements!

Fixed products like structured settlements don’t track in total lock step with Treasuries per se but the latter is often used as a general benchmark for where things are headed in our industry.  And we like what we’re seeing.

So lock in those fixed interest mortgage rates while you can, folks!  Quite possibly, the low rate opportunities may soon be gone for good.  Or at least for another generation.

Meanwhile, we’re cheering the rate improvements we’re seeing from most of our life company partners and are optimistic the best is yet to come.

January 29, 2013 –  Independent rating agency A. M. Best has revised its credit rating outlook of American General Life from “stable” to “positive” according to last week’s press release on the topic.

American General is one of the four domestic life/health subsidies impacted by this action taken on parent company American International Group, Inc.

A “positive” outlook, according to Best, “indicates that a company is experiencing favorable financial and market trends, relative to its current rating level. If these trends continue, the company has a good possibility of having its rating upgraded.” (Emphasis ours)

While still too early to call, expectations are high that American General, currently rated A (Excellent), will soon reclaim its A+ (Excellent) rating in the near future.

American General is a major provider of structured settlement annuities currently responsible for writing approximately 10% to 12% of the annual structured settlement business.  They could potentially double that market share with the return of an A+ rating based on prior year results.

This is yet another positive (pun intended) step in the right direction for the 160 year old company committed to the structured settlements industry.  We wish them continued success and congratulate them on this development.

January 27, 2013 – With the Superbowl only a week away, the future of the sport is coming into question because of the seriousness of the injuries some players have suffered.

Just this past week, the family of former San Diego Chargers star linebacker Tiaina Baul “Junior” Seau, Jr. filed a multi-count lawsuit against the National Football League and several other defendants after an autopsy revealed evidence of Chronic Traumatic Encephalopathy (CTE).

Seau, who also spent time with the Miami Dolphins and New England Patriots before retiring, committed suicide last May.

He is not the first pro football player to be diagnosed with CTE postmortem.

The President of the United States even weighed in on the seriousness of the concern in an interview released today. President Obama, a lifelong Chicago Bears fan, confessed he’d have to “think long and hard” before letting a son of his play football given this developing body of evidence.

Structured settlements are frequently used to resolve Traumatic Brain Injury (TBI) and wrongful death claims when damages are paid.

January 22, 2013 – The first trial in the nation involving the recalled ASR artificial hip implant devices, manufactured by DePuy Orthopaedics, is scheduled to begin this week in a California court room according to today’s Wall Street Journal.

Tomorrow’s Washington Post includes some interesting details about the pre-trial expert testimony on the case styled Kransky v. DePuy.

The Finn Financial Group has been closely monitoring this litigation for the past several years because of a personal connection we feel to the plaintiffs involved.

To learn more about the structured settlement option that could be available to plaintiffs depending on the outcome of the trial, please visit a special website we created to help potential clients understand this excellent settlement option.  Here you’ll learn more about why we feel so strongly about this matter:

ASRHipSettlement.com

For further information or for a personal consultation, please contact us so we can help you make an informed decision about your future.

We will continue to monitor this and all DePuy lawsuits with great interest.

January 22, 2013 –  Taking the time to share an article from a colleague of mine who truly understands the under-appreciated and fragile interconnection between risk, loss, security, pride and how structured settlements fit into the picture.

Don McNay is a best selling author from Kentucky I’ve had the pleasure of knowing my entire career.  In addition to sharing an affinity for vintage rock ‘n’ roll music, we also share a passion for helping people.

We also both believe passionately in the power of structured settlements.

In his recent article, the rhetorically titled “Is It Time to Make a Bold Move?” for The Voice-Tribune, Don waxes philosophical about some famous rebels and risk takers who ended up accomplishing some pretty amazing things because of their counterintuitive choices.

Among the underlying messages of this particular article, as it pertains to financial decision making, is this:

Being a contrarian can pay dividends.  (Pun intended)

And given the frequent, incorrect perception that “interest rates are too low to structure,” he’s indirectly urging people who make the bold, if not completely popular, move of choosing a structured settlement in the face of advice from well intentioned advisers to the contrary, to do so with confidence.

But it’s less about being bold, argues Don, than it is staying true to your values.  And those who value peace, security and sleeping well at night can never regret choosing a structured settlement if given the opportunity.

Well done Don!  My only complaint is that you didn’t find a way to work a line from Axis: Bold as Love into your article.

Maybe next time.

Don’t Sweat the Big Stuff

January 21, 2013 – There are few golfers on tour more popular than Phil Michelson.

Movie star good looks.  Four major championships.  Second on the “all-time money” list of tournament prize money won.  Endorsements through the roof.

And apparently it’s the latter that’s finally catching up to Lefty.

According to Sports Illustrated, Phil Mickelson earned over $57 Million dollars in endorsements in 2011.  That figure accounts for about 94% of his entire earnings for that year.

Makes his 3.7$ Million in salary and winnings seem like chump change.

It now seems the new 2013 tax rates have put a burr under Phil’s saddle if you’ll pardon the out-of-context metaphor.  Fred Altvater, reporting in Bleacher Report, claims that the new rates have incensed the golfer so much that he’s pledging “drastic changes” because his “tax rate is “62-63%.“

Two quick bits of advice for the golf legend-in-the-making.

First, get a new accountant and financial planner because that just doesn’t sound right.

Second, take a good, hard look at Structured Celebrity Endorsements.

As Jerry Reed cautioned in his 1971 crossover hit, “When You’re Hot, You’re Hot,” winning streaks make life seem grand.  But when the tide turns, watch out!

Every “hot” celebrity should heed this caution because fame can be so fleeting.

One day you’re the lead singer of the most popular band in the world.  The next day, you’re just the bass player.

Celebrities who understand this dynamic can capitalize on their popularity and secure their future by spreading their endorsement earnings out over a number of years, even a lifetime, with a Structured Celebrity Endorsement – an offshoot of the structured settlement concept.

Choosing a Structured Celebrity Endorsement can help prevent the next tale of woe such as that which befell the likes of Jake LaMotta, Mike Tyson, Lance Armstrong or countless others whose star, and earnings potential, faded earlier than planned.

Give us a ring, Phil.  We’re here to help.  We want to keep you competing on the links in your native California.  Don’t pay all those taxes this year.  Spread it out and save yourself some money at  the same time.

Besides, I just can’t see you playing bass.

January 16, 2013 – Passing along today’s blog from the National Structured Settlements Trade Association (NSSTA), entitled “The Key to Workers’ Compensation,” which highlights the benefits of structuring workers’ compensation claims.

The blog provides an excellent summary of an article which appeared in last month’s Claims Management on the benefits of structuring these types of claims and why they are often perfect candidates for claims professionals to consider for structured settlements.

Because the workers’ compensation system in most states has built-in provisions for steady future periodic indemnity payments already, transitioning to a structured settlement when it comes time to compromise the claim for settlement seems a natural fit.

Further, because future medical needs are often a component of any settlement for an injured worker, structuring future dollars to meet those needs makes for a very sensible resolution for all concerned.

And because satisfying the Medicare Secondary Payer Act obligations is an omnipresent worry, the structured settlement can play an integral role in helping to bring about a successful resolution for all involved.

January 16, 2013 – Yesterday’s CNN/Money column “California Shale Boom Possible” was a timely article for us to remind our clients about a money-saving option available to those who lease their land for oil and gas exploration.

In August of 2011 we announced the availability of a new application of the structured settlement concept designed to help landowners defer taxes on the bonus payments they typically receive for leasing their land.

In addition to potential future royalties, landowners are commonly offered substantial up-front cash bonus payments as an inducement to leasing the land for prospecting.  Because this bonus payment is fully taxable, the Structured Oil & Gas Lease Bonus Option can help spread the tax burden out over a number of years saving the taxpayer money.

To learn more about this unique approach to saving money on oil & gas leases, visit our companion website at:

MyStructuredLeaseBonus.com