Source: https://structuredsettlements.typepad.com/structured_settlements_4r/financial_protection/
Timestamp: 2020-07-05 16:32:39
Document Index: 226744484

Matched Legal Cases: ['§ 522', '§222', '§ 522', '§ 33', '§222', '§ 33', '§ 431', '§ 5', '§ 60', '§ 22', '§ 16', '§ 500', '§ 42', '§ 3212', '§ 2329', '§ 3631', '§ 56']

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary, Now in 15th Year!: Financial Protection
Structured Settlement Creditor Protection
Structured settlement creditor protection is often cited as one of the benefits of structured settlements. In this blog we take a closer look at structured settlement creditor protection, creditor protections for annuities in general and whether such creditor protections apply to "secondary market annuities"
How are Florida Structured Settlement Payees protected from claims of creditors?
The 2017 Florida Statutes provide the following:
Creditor Protection is a one of the benefits of structured settlements
222.14 Exemption of cash surrender value of life insurance policies and annuity contracts from legal process.—The cash surrender values of life insurance policies issued upon the lives of citizens or residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor.
Windsor‐Thomas Group Inc. v. Parker , 782 So.2d 478 (Fla. 2d DCA 2001). Florida District Court of Appeals held that the structured annuity issuer had standing to raise the statutory prohibition against garnishment.
Mc Collam v. LeCroy, 612 So. 2d 572 (1993). Florida Supreme Court held that an annuity contract awarded to the debtor by a defendant to fund a structured settlement of a personal injury case was exempt. The creditor argued that the annuity contract did not qualify as an exempt annuity contract as being in substance a nonexempt structured settlement. The court noted that the statute does not define “annuity contracts” and hence it did not find the exemption limited to any particular types of annuity contracts, such as those based on the insurance of human lives.
Structured Settlement Creditor Protection in Other States
In re Paul William Orso, Debtor. Valerie Canfield, Appelant v Paul William Orso and Martin A. Schott Appellees, 283 F.3d 686 (5th Cir. 2002) affirmed the bankruptcy and district courts' conclusion that the annuity payments in question ( compensation from 1989 settlement for injuries sustained by Orsi in 1986 automobile accident) are exempt from seizure by ex-wife (from whom he was divorced in 1991), and thus exempt from claims asserted by Creditor-Appellant Valerie Canfield in Debtor-Appellee Paul William Orso's bankruptcy proceedings.
in re Meyer, 2010 WL3369375 (Bankr. D. Minn. 8/25/10) (O’Brien, J.) Minnesota bankruptcy judge overruled a bankruptcy trustee and found that future payments from the structured settlement were, in fact, payment and compensation for the bankruptcy debtor's loss of future earnings. 11 U.S.C. § 522(d)(11)(E) provides an exemption for “a payment in compensation of loss of future earnings...".
Swimlear v. Baker, 2009 WL 3644336 Court ruled favorably with an exemption for the structured settlement annuitant in New York case
However, Dallas bankruptcy attorney Bruce W. Akerly says that the protection is not that simple when filing for bankruptcy protection while receiving structured settlement payments. He says in his 2015 missive "The Impact of Bankruptcy on Structured Settlements", that "In most states, structured settlement payments are listed on Schedule B (personal property) and Schedule C (exempt property). A debtor must identify the payments as exempt to claim them as exempt; otherwise, the trustee or the creditors may seek to treat them as property of the bankruptcy estate".
Furthermore Akerly says "If a debtor fails to identify structured settlement payments in his/her bankruptcy schedules, then, once discovered, the case may be re-opened to allow the trustee to administer the payments, notwithstanding the granting of a discharge in bankruptcy, and payments that had been paid in the interim period may be require d to be returned to the bankruptcy estate. Furthermore, the debtor risks having the bankruptcy discharge set aside.
Structured Settlement where there is no annuity funding may not be exempt in bankruptcy in Florida
In re Dillon, 166 B.R. 766 (Bankr. S.D. Fla. 1994) illustrated the distinction between an exempt annuity contract purchased to fund a structured settlement and a mere structured settlement. In Dillon the judgment creditor agreed to make annual payments and did not purchase an annuity contract to effectuate the annual payments. The court held that the annual payments were not exempt proceeds of an “annuity contract” pursuant to §222.14,Unfunded structured settlement not exempt [Thanks to Miami bankruptcy lawyer Jordan E. Bublick for the cite]
Federal Bankruptcy Exemption For Annuities
Payments from an annuity on account of illness, disability, death, age, or length of service are exempt to the extent reasonably necessary for the support of the debtor and dependents. -- 11 U.S.C. § 522(d)(10)(E)
States With 100% Exemptions for Non IRA, Non ERISA Annuity Cash Value and Payments from Claims Of Owner's Creditors
Arizona Ariz. Rev. Stat. § 33-1126A7
Florida Fla. Stat. Ann. §222.14 (see above)
Georgia Georgia Code Ann. § 33-28-7
Hawaii Hawaii Rev. Stat. § 431-10-232
Illinois 100% for annuity payable to dependent -- I.L.C.S. § 5/12-1001(f)
Kansas 100% if held for more than one year Kan. Stat. Ann. § § 60-2313(a)(7), 40-414.
Louisiana 100% protected. -- La. Rev. Stat Ann. § 22:647(B). Limited to $35,000 if issued within 9 months.
Maryland Md. Code Ann. Ins. § 16-111(a)
Michigan Mich. Comp. Laws Ann. § 500.2207
New Mexico N.M. Stat. Ann. § 42-10-3
New York 100%, however, court may order that debtor pay creditor "just and proper amount" with "due regard for the reasonable requirements" of the debtor and dependents. -- N.Y. Ins. Law § 3212(d)
Ohio 100% for contracts payable to spouse, children or dependent. -- Ohio Rev. Code Ann. §§ 2329.66(A)(6)(b),
Oklahoma 6 Okla. St. Ann. § 3631.1
Tennessee 100% for net amounts payable to spouse, child or dependents. -- Tenn. Code Ann. § 56-7-203.
If you live in one of these states, before you get hustled into selling your structured settlement payments to some "Slick Rick" with a bag of dirty tricks for pennies on the dollar, think again. Maybe there is another alternative worth considering.
Do People Receiving Payments from a "Secondary Market Annuity" Enjoy the Same Creditor Protection?
Despite the marketing gimmick, secondary market annuities are not annuities. Certain intermediaries and some settlement planners have peddled structured settlement payment rights as an annuity, even though it is not an annuity. The question is do structured settlement derivative investments have the same creditor protection as a legitimate structured settlement, independent of whether they are acquired by a domestic asset protection trust?
Consider this, when a personal injury or wrongful death law suit is settled and part of the consideration for the settlement of a lawsuit:
1. The plaintiff does not buy any annuity, the plaintiff agrees to receive part of the consideration in the form of periodic payments.
2. The periodic payment obligation is assigned to a qualified assignment company. The qualified assignment company is the applicant, buyer and owner of the annuity contract it uses to fund its obligation. Nothing changes about that if an annuitant chooses to sell their structured settlement payment rights to a factoring company and the factoring company "lays off" the structured settlement payment rights to a structured settlement investor. It gets even more convoluted when you have intermediaries like SMA Hub, who take the assignment of payment rights into a business trust and then sell them off to investors.
Certain states like Delaware specifically provide that when the formation of the trust predates the wedding, the future ex-spouse has no claim against the trust property. A caution by New York lawyer Daniel S. Rubin is cited in this 2012 Forbes article "The laws of some, but not all, domestic asset protection trust states, provide that a claim for alimony cannot be enforced against a trust that was created prior to marriage. He notes, however, that these laws do not necessarily preclude the income of the trust from being considered in determining the appropriate alimony award".
Further exploration of this topic is needed.
Posted at 02:05 PM in Albany New York Structured Settlements, Annuity FAQ, Bowling Green Kentucky Structured Settlements, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, Chicago Illinois Structured Settlements, Detroit Michigan Structured Settlements, Financial Planning, Financial Protection, Hartford CT Structured Settlements, Lexington KY Structured Settlements, Long Island NY Structured Settlements, Los Angeles CA Structured Settlements, NC Structured Settlements, New Jersey Structured Settlements, New Orleans Louisiana Structured Settlements, New York Personal Injury, New York Settlement Planning, New York Structured Settlements, Newburgh Structured Settlements, NH structured settlements, NJ Structured Settlements, North Carolina Structured Settlements, NYC Structured Settlements, Oklahoma Structured Settlements, Palm Beach Structured Settlements, Philadelphia PA Structured Settlements, Rhode Island Structured Settlements, Rochester Structured Settlements, Sacramento Structured Settlements, San Francisco Structured Settlements, Santa Monica Structured Settlements, Sarasota Structured Settlements, Settlements in Queens County New York, South Carolina Structured Settlements, St. Louis Structured Settlements, Structured Settlements in Georgia, Structured Settlements in Illinois, Structured Settlements in Ithaca New York area, Structured Settlements in Louisiana, Structured Settlements in Maryland, Structured Settlements in Michigan, Structured Settlements in Nassau County, NY, Tulsa Structured Settlements, VA Structured Settlements, Washington Structured Settlements, West Virginia Structured Settlements, White Plains Structured Settlements | Permalink
Student Loan Debt Exposure Can be Covered With Disability Insurance Rider
Professionals in medicine, law, pharmacology, dentistry, veterinary science, and business often graduate with large student loan debt between $100,000 and $210,000. and face significant exposure, particularly early in their career.
Why is a disability early in a career problematic?
Unpaid student loans are at their highest and income just beginning to grow.
The conditions under which student loan debt can be discharged are very stringent.
While Federal student loans are forgiven in the event of death. However, when it comes to disability, they require the borrower to be totally and permanently disabled with a condition expected to last at least 5 years and result in death in order to meet the federal standards for loan discharge.
Unlike many other kinds of debt, federal student loan debt cannot be discharged in the event of bankruptcy.
Disability insurance is available for professionals that expressly addresses student loan exposure
•The Student Loan Protection Rider enables insureds to protect their ability to meet student loan obligations in the event of Total Disability. Coverage can be tailored to their specific debt
Key features of Student Loan Protection Rider*
$500-$2,000 per month towards student loan payments for those pursuing an advanced degree (master’s or higher).
$500-$1,000 for all others.
Obtain additional coverage up to $2,000 per month, depending on degree above what they might otherwise qualify for based on income.
Choose a 10 or 15-year term.
•At the time of writing, there is currently only one disability income carrier to offer a student loan disability protection rider.
Is any loan documentation required as part of the application process for the student loan disability protection rider?
No loan documentation is required at the time the policy/rider is purchased. The professional applying for the policy simply selects the desired coverage up the limits set forth above. In the future, if there is a claim made on the policy, THEN loan documentation is required to process reimbursement.
Posted at 01:14 PM in Attorney Financial Planning, CT Financial Planning, Financial Planning, Financial Protection, NYC Financial Planning, Student Loan Debt Protection, Student Loan Disability Protection, Westchester Financial Planning | Permalink
Annuity Payout Rate | Is Annuity Payout Rate an Interest Rate?
by John Darer® CLU ChFC CSSC RSP CLTC
An annuity payout rate is not an interest rate. An annuity payout rate is the percentage of the annuity purchase price that is paid out each year and includes both interest and return of principal. The term "annuity payout rate" is used in marketing as a way to make income annuities more attractive.
If seeking to purchase an income annuity or a salesperson is trying to get you switch from a CD or other income producing investment, caution should be taken when considering the alternatives. Internal Rate of Return (IRR) is probably a better measure of comparison than annuity payout rate.
Posted at 02:37 PM in Albany New York Structured Settlements, Annuity FAQ, Annuity News, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Deferred Income Annuity ("DIA"), Financial Planning, Financial Protection, Immediate Annuity, Information About Annuity, Internal Rate of Return (IRR), Jacksonville Florida Structured Settlements, Life Annuity, New Jersey Structured Settlements, New Orleans Louisiana Structured Settlements, New York City Structured Settlements, New York Settlement Planning, New York Structured Settlements, NYC Structured Settlements, Structured Settlement Watchdog® | Permalink
Lending To Those You Love and Friends
An article in Sunday's Independent, highlights research that shows that Britons are advancing billions to friends and family each year and that relationships are feeling the strain. The StepChange survey revealed that 56% of those clients in debt to family relationships said their relationships had deteriorated.
While the article clearly does not say you should always refuse to lend to people close to them, it is important to recognize that most arguments and fallouts tend to occur when money is owed. The moment you ask for it back, the tension starts to build. You must have clarity over the repayment of the loan BEFORE you lend the money"
If you have received a settlement in a personal injury case, it's not a windfall even if it's the largest sum of money that you've ever had in your bank account, or if its the longest "job" guarantee you've ever had (structured settlement) Take at least a minute to think about the reason why you received (or are receiving the money) the money and what you had to go through to get it. You've first suffered a physical injury or you've lost a spouse, parent or child, and perhaps endured a joyless roller coaster ride through years of litigation including invasive discovery, attended depositions and been frustrated by many stops and starts.
Then consider that your settlement money may be all that you have. The payments from your structured settlement may be your sole source of income. These are not conditions where it makes sense to be lending money under any circumstance.
If you have a structured settlement you should absolutely not sell your structured settlement payments or any portion of them to lend money to anyone because you get hit on both ends. Selling your structured settlement payment rights means selling your future payments at what could be a sigificant discount. Then you turn around and loan to a friend or family member thinking you are helping, but now knowing that there is more than 50% chance that the relationship will deteriorate?
Read A Time Bomb is Ticking When We Lend To Those We Love
Posted at 06:31 AM in Albany New York Structured Settlements, Boca Raton Florida Structured Settlements, Bowling Green Kentucky Structured Settlements, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, Chicago Illinois Structured Settlements, Connecticut Settlement Planning, Corpus Cristi Structured Settlements, Detroit Michigan Structured Settlements, Financial Planning, Financial Protection, Hartford CT Structured Settlements, Jacksonville Florida Structured Settlements, Kings County Structured Settlements, Long Island NY Structured Settlements, Los Angeles CA Structured Settlements, Louisville Kentucky Structured Settlements, Maryland Structured Settlements, Missouri Structured Settlements, NC Structured Settlements, New Jersey Structured Settlements, New Orleans Louisiana Structured Settlements, New York City Structured Settlements, New York Personal Injury, New York Settlement Planning, New York Structured Settlements, Newburgh Structured Settlements, NH structured settlements, NJ Structured Settlements, North Carolina Structured Settlements, NYC Structured Settlements, Orange County Structured Settlements, Orlando Florida Structured Settlements, Palm Beach Structured Settlements, Philadelphia PA Structured Settlements, Providence Rhode Island Structured Settlements, Rhode Island Structured Settlements, Rochester Structured Settlements, Sacramento Structured Settlements, San Francisco Structured Settlements, Santa Monica Structured Settlements, Sarasota Structured Settlements, Seattle Structured Settlements, Settlements in Queens County New York, South Carolina Structured Settlements, St. Louis Structured Settlements, Structured Settlement Factoring News, Structured Settlement Watchdog® | Permalink
Mr. Wentworth is Belted Up as JG Wentworth Urges Them to go "Strapless"
In one of JG Wentworth's latest commercials we see a virtual kaleidoscope of actors seeking instant gratification. The attention to detail by its ad agency, to attempt to capture every demographic group is amazing. There's a cop, there's a hispanic who needs "dinero ahora" and because you just can't be too careful, in the signature sign off from Mr. Wentworth, ironically in a taxi while wearing a shoulder strap seat belt. Holy misplaced metaphor!
A structured settlement is a seat belt of sorts. Seat belts are designed to keep you safe and not ejected through the windshield if there is a car accident. One way to look at a structured settlement might be as a seat belt of sorts, to prevent you from "getting ahead of yourself", from being "ejected " from a safe and secure financial plan.
People that go "strapless" may perceive more freedom of movement and may perceive a certain "aesthetic" benefit, yet there's always the possibility of a financial "wardrobe malfunction" eh?
As we approach St. Patrick's Day, should we not be saying "Erin Go BRA-gh"? (cue "homonym alert" and snickers)
"Bragh" of course means "to eternity". A structured settlement can be designed to continue until the end of "your time". Think about it! By all means give up meat for Lent, but don't ditch your structured settlement for St. Patty's Day.
Posted at 11:22 AM in Boca Raton Florida Structured Settlements, Boston Structured Settlements, Financial Protection, JG Wentworth, JG Wentworth Commentary, Los Angeles CA Structured Settlements, Maryland Structured Settlements, Philadelphia PA Structured Settlements, Radnor Structured Settlements, Structured Settlement Factoring News, Structured Settlement Humor | Permalink
Does Your Structured Settlement Need "After Care"?
One of the benefits of a structured settlement is that it does not need "after care". With the exception of an occasional address , beneficiary or bank change, or to explain to your child that they have a structured settlement once they reach the age of majority, there is nothing that you need to do with your structured settlement once you set it up. Structured settlements provide safety, security and guarantees to people who want a stable income with minimal maintenance. It's like a "job you can't be fired from". Even if you're naughty you still receive your structured settlement payments.
This has not stopped structured settlement cash now pushers from attempting to create an illusory need for "after care" services for structured settlements, that really are not necessary.
If you need financial advice, seek financial advice only from those who are registered to do business in your state, who possesses professional credentials and, if required, relevant licensing.
Posted at 12:07 AM in Albany New York Structured Settlements, Boca Raton Florida Structured Settlements, Bowling Green Kentucky Structured Settlements, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, Chicago Illinois Structured Settlements, Detroit Michigan Structured Settlements, Financial Protection, Hartford CT Structured Settlements, I've Got A Structure and I'm 18, Jacksonville Florida Structured Settlements, Lexington KY Structured Settlements, Long Island NY Structured Settlements, Los Angeles CA Structured Settlements, Louisville Kentucky Structured Settlements, Maryland Structured Settlements, Missouri Structured Settlements, NC Structured Settlements, New Jersey Structured Settlements, New Orleans Louisiana Structured Settlements, New York Structured Settlements, Newark NJ Structured Settlements, Newburgh Structured Settlements, North Carolina Structured Settlements, NYC Structured Settlements, Orange County Structured Settlements, Palm Beach Structured Settlements, Rochester Structured Settlements, Sacramento Structured Settlements, San Francisco Structured Settlements, Santa Monica Structured Settlements, Sarasota Structured Settlements, Settlements in Queens County New York, South Carolina Structured Settlements, St. Louis Structured Settlements, Structured Settlement FAQ, Structured Settlement Watchdog®, Structured Settlements Florida, Structured Settlements in Fresno County, Structured Settlements in Georgia, Structured Settlements in Illinois, Structured Settlements in Ithaca New York area, Structured Settlements in Kentucky, Structured Settlements in Louisiana, Structured Settlements in Maine, Structured Settlements in Nassau County, NY, White Plains Structured Settlements, WV Structured Settlements | Permalink
Tags: after care for structured settlements, aikman structured finance, structured settlement
Qualified Long Term Care Insurance | Tax Benefits of LTC Insurance
The IRS has announced increased tax deductions for long term care insurance policies purchased in 2015.
“Tax advantaged long term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners,” says Jesse Slome, Executive Director of the American Association for Long Term Care Insurance in a press release issued by AALTCi. “While deductions may not apply for individuals who are still working, they often can be taken during retirement when income stops and medical expenses often occur.”
Attained Age Before Eligible Annual
Year End 2015 LTC Premiums (per person
40 and younger $380
41 - 50 $710
51 - 60 $1430
61 - 70 $3800
71 and older $4750
Source: IRS Revenue Procedure 2014-61
For tax-qualified long term care insurance plans, the long term care benefits you receive are not considered taxable income and you can deduct long term care insurance premiums as medical expenses to the extent that your total qualified medical expenses exceed 10% of your annual adjusted gross income (AGI) or 7.5% if you are age 65 or older.
Qualified Long-Term Care Insurance Contracts
A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. The contract must:
Be guaranteed renewable,
Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed,
Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits, and
Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses.
Paying Long-Term Care Insurance Premiums through a Health Savings Account (HSA):
The premiums for long-term care insurance that you can treat as qualified medical expenses and reimburse yourself from an HSA are subject to limits based on age and are adjusted annually. (See above limitations) For example, someone 41-50 years old or younger can reimburse themselves up to $1,430 from the HSA for long-term care insurance paid in 2015. Available even if the HSA is offered through an employer-provided cafeteria plan.
Small Business Owners Get LTCi tax break
Small business owners who itemize may be able to deduct 100% of their medical, dental, and qualified Long Term Care Insurance up to the Eligible Premium amounts listed above [IRC 162(l)]. for themselves, their spouse, and their dependents if they fit into one of the following categories:
A self-employed individual with a net profit reported on Schedule C, C-EZ, or F.
A partner with net earnings from self-employment reported on Schedule K-1 (Form 1065), box 14, code A.
A shareholder owning more than 2% of the outstanding stock of an S corporation with wages from the corporation reported on Form W-2..
It is not necessary to meet an AGI threshold in order to take this deduction.
However, a self-employed individual may not deduct LTCi premiums during any calendar month in which he/she or his/her spouse is eligible to participate in a subsidized LTCi plan (where the employer pays all or part of the premiums for LTCi).
There are other nuances to the tax issues. Be sure to speak with your CPA.
Posted at 11:21 PM in Attorney Financial Planning, Connecticut Settlement Planning, Financial Planning, Financial Protection, Long Term Care Insurance, New York City Settlement Planning, New York Settlement Planning | Permalink
SFSP Voluntary Group LTD Plan Enhanced Benefits and Reduced Rates!
The voluntary long term disability insurance plan offered to members of the Society of Financial Service Professionals (SFSP) has not only been enhanced but rates have been REDUCED 20-40% (depending on age)! Got to love the law of large numbers.
Disability insurance through the SFSP plan offers valuable protection including:
Protecting your income stream in the event of an extended disability
Benefits for both total and partial disability
"Own occ" for the life of the policy (3 years limit removed)
90 day elimination period
60% of income (trailer income generated pre-disability does not reduce residual benefits,.
a cost of living adjustment
Benefits to age 65, or later if still working.
A monthly assisted living benefit
A monthly annuity contribution to help make up possible reduced pension funding when disabled.
Insured by Standard Life Insurance Company, one of the leading LTD insurers.
The law of large numbers means that the plan is guaranteed issue. That's right, guaranteed issue, but open enrollment is only available for eligible SFSP members during a window period through November 15, 2014. A 6/24 pre-existing condition provision applies. There is now a $12,000 per month cap. No proof of income required when enrolling but will have to prove income loss at the time of claim. More details are in the SFSP LTD brochure and the online enrollment materials.
Disability insurance is an important pillar of financial security. Losing your ability to produce earned income is devastating both mentally and physically. Without disability insurance, your savings can melt down pretty quickly potentially impacting your financial viability and those you love.
Structured settlement brokers and settlement planners who have the erequsite credentials to become a member of the Society of Financial Service Professionals (SFSP) may wish to consider joining the SFSP to be able to supplement their current individual disabilty insurance, not to mention the significant benefits of membership for information and professional growth.
Society of Financial Service Professionals (SFSP) is an 80 year old credential only organization. 85% of its 15,000+ members have over 20 years of professional experience, according to a information provided by the SFSP.
Image credit: © Alexmillos | Dreamstime.com - Disability Insurance Photo
Posted at 08:51 PM in Financial Planning, Financial Protection, Society of Financial Service Professionals (SFSP) | Permalink
Gimmicks Are Gimmicks | An Important Financial Planning Adage
The recent Post headline Hackers stole $437M worth of bitcoins in 'tinker toy' currency mess portrays something in some ways worse than a Ponzi scheme in sheer speed of its collapse. The story, is that Mt. Gox — formerly known as Magic: The Gathering Online Exchange — made 750,000 bitcoins worth $473 million disappear, the company said Friday. The former trading-card exchange declared bankruptcy.
As the New York Post's Jonathon M. Trugman points out March 2, 2014, a bonafide currency has a homeland, and it is that country's specific approved form of money, with a seal and a traceable serial number, backed up by the gross domestic product, taxes and oversight.
Trugman opines that "anyone referring to bitcoin as a currency is slimy or just plain stupid".
If you are receiving a settlement or already have the proceeds of your settlement beware of speculative and risky investments. A gimmick is a gimmick. Instead start with a structured settlement, establish a core stream of income that is unaffected by the stock market, or the real estate market, before you start taking risks in the market, or starting a business, investing in someone else's business, or taking on a lot of debt.
Posted at 06:49 PM in Financial History, Financial Planning, Financial Protection, Settlement Planning, Structured Settlement Information | Permalink