In this weeks edition of Speaking of Settlements, Mark Wahlstrom, the President of Wahlstrom & Associates discusses the recent article in the Wall Street Journals Intelligent Investor column by Jason Zweig on the Net-Net-Net returns on most investments.
I have discussed and linked to this article last week in another blog post, but the premise is that the vast majority of investors have exceptionally unrealistic expectations on what they can yield on most investments net of taxes, net of fees and commissions and net of inflation. After all of those elements are factored in the best that some of the most sophisticated investors in America would expect would be between .5% to 4% annually.
When compared to structured settlements yields, net of taxes, net of fee's and with inflation factors available for purchase on the contracts you have returns of 2% to 5% on many contracts even in today's low interest rate environment, but that return is going to go up even more as interest rates increase and tax rates climb as well.
Watch this weeks edition of Speaking of Settlements on how to learn the accurate way to compare structured settlements against other investments and start educating clients on how competitive and effective our core product is for the vast majority of personal injury victims.