Cash is King, structured settlement income has amazing value

In this edition of Speaking of Settlements, Mark Wahlstrom, the President of Wahlstrom and Associates and the host of The Settlement Channel, discusses the economic downturn, unemployment and financial uncertainty related to JOBS and why guaranteed income and cash has never been more important for families.

One of the greatest mistakes plaintiffs, injury victims and trial lawyers make it to assume they will always be able to generate a secure, sufficient income through their employments, a wifes job, investment income or other sources. The sad fact is that other then a social security check and some pensions from blue chip employers are the only guaranteed monthly income anyone really has, particularly in a market with depressed interest rates, rising unemployment, under employment and sharply lower savings and retirement accounts.

The structured settlement annuity, when issued by a large, responsible life insurance company has proven over 30 years to be the single most effective means of providing stable, guaranteed, tax free income for injury victims, their families and increasingly for lawyers themselves who need to defer taxes and guarantee income to fund their law practices.

Check out this weeks Speaking of Settlements and remind your clients again why the structured settlement is usually the single most effective means of protecting your clients long term financial health.

China is "worried" about US Treasury bond investments. Should you be too?

Well, we knew this was coming but today's pronouncement by the premier of China, Wen Jiabao that he is "worried" about the amount of US debt that China holds and it's value in the face of the current economic melt down is the first big warning shot to the Obama administration. Wen Jiabao, Premier of China

Many commentators, investment firms and others have long been warning that China would not tolerate for long the financial misadventures of the US Congress and our exploding deficits if it threatened the viability and stability in pricing of US Treasury's held by China.

Premier Jiabao said " We have lent a huge amount of money to the US. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried."

Lets just say that China has now officially let it be known that the massive bailout, spending and stimulus program embarked on in the first 50 days of the Obama administration has got it more then a little concerned, as they realize that even more Treasury paper will be flooding the credit markets and that the US has become a debtor nation.

The implications of this policy are laid out in two excellent articles today.

One in the NY Times.

One in the Wall Street Journal.

What this means to the financial markets, tax payers and others is that much as the loan sharks send Vinnie the collector over to your place of business to remind you that Friday is pay day and that they expect you to be on time, China has now sent a clear message to the US that the orgy of spending and printing of money is going to come at a huge cost.

That cost is China and many of the middle east oil producing companies are going to be directing, through the pressure they exert as a major lender, the direction and priorty of US fiscal policy and that our nation is now vulnerable to economic blackmail from countries that are not our friends.

The implications for us are that we as a nation have got to pare back debt, pare back foolish spending, start investing in real businesses, technology and processess that create real wealth and value or we are looking at an extended period of economic decline or malaise as a country. Both parties have their hands all over this deal and it will fall not on political leadership but individual citizens and business people to set the course straight again.

Keep your powder dry, your assets in safe and secure places, invest in your business and educations and spend wisely. It's going to be a new world order and the US and it's citizens just got a glimpse of it this morning.

As settlement planners our focus will continue to be on safety, quality of assets, fixed and floating yield annuity products and assisting clients with protecting their settlement awards and assets.

Major one day seminar on 468b trusts and qualified settlement funds

As many of our news letter readers already know, there is going to be a major seminar held here in Phoenix, AZ on April 17th, hosted by the Tax Institute and featuring national tax expert Attorney Robert W. Wood on the topic of 468b trusts and Qualified Settlement Funds.

This event will be held at the beautiful Phoenix Marriott, literally 3 minutes from the Sky Harbor terminals and strategically planned to allow for either a quick and economical same day fly in to attend, or a quality weekend stay over if you want to enjoy some sunshine and fun a couple of days after April 15th.

The text book, which is included in the CE/CLE cost is 468b trusts and qualified settlement funds, authored by Attorney Robert W. Wood of Wood & Porter of San Francisco, CA. It is published by the highly regarded Tax Institute and is an exceptional resource. I've got a copy and it's about the size of the Gutenberg Bible and almost as authoritative! It covers every tax, regulator and procedural aspect of 468b trusts, qualified settlements funds and their use in both qualified and non-qualified cases. There is no finer expert then Robert Wood, he already wrote the text book used in most law and tax curriculums on taxable damage issues and now has written what I predict will become the standard of practice on 468b trusts.

What makes this seminar so unique is it is open to trial lawyers, tax lawyers and professionals, elder law and probate attorneys as well as structured settlement and life insurance company personnel. Perhaps no area of the settlement and legal profession holds more promise then the broad application of these trust, while at the same time facing unneccessary resistance as a result of a standard of how taxes and process is handled to make them understood to the every day planner, attorney or tax professional.

Listen to what the Tax Institute has to say about 468b trusts and Qualified Settlement funds:

"Qualified Settlement Funds (QSFs) are tax qualified trusts for litigation settlement proceeds. They are easy to set up, and offer unparalleled tax and structural benefits. Defendants get an immediate tax deduction and full release, but plaintiffs can defer their income, structure their recovery, etc. They are revolutionizing case settlements, from complex class actions to mom & pop litigation.

Plaintiffs love QSFs, for they can determine when and how to be paid, structure, cash or both.

Defendants love QSFs, for they get their tax deductions immediately!

Plaintiff Lawyers love QSFs, for they can structure their fees, or get paid immediately, even while their clients are still negotiating.

Settlement Administrators love QSFs, which are orderly, tax qualified, and advance settlement goals."

What this is NOT is a seminar on single claimant cases but a truly thoughtful look at the tremendous opportunity to revolutionize and improve the management of a huge area of litigation and settlements!

Featured speakers will of course be Attorney Robert W. Wood on the tax and procedural issues, famed environmental and Civil Action attorney Jan Schlichtmann on how the use of 468b trusts has revolutionized his environmental law practice, Mark Wahlstrom of Wahlstrom and Associates on the key planning and structured settlement opportunities for settlement professionals as well as other experts and providers who will be there for the breakfast, lunch and social hour functions that will give people an exceptional opportunity to network and meet other professionals who are working in this exciting area of settlement planning.

This is event is currently submitting for both CLE and CE credits and is being produced and filmed by The Legal Broadcast Network and it's production arm, LB Network Studios. This is going to be a high value, time and cost efficient event that can dramatically improve your practice and is open to everyone, from defense firms to plaintiff practices and all other disciplines.

You can learn more by going to the event page on The Tax Law Channel or at the LB Network blog where we will profile the speakers, give links to the hotel, contact information for Attorney Rob Wood and answer most of your questions on this event. We hope to see you there!