Without proper wealth orientation, and settlement planning this means that both investment and longevity risk rest with the individual plaintiff. Taken together with the unique human life transition experience of the plaintiff, first through their life altering event and then leading up to, at, and after receiving their recovery, it should not hard to imagine where things can go wrong. Unfortunately that is not always the case if the lens is cloudy.
Experiencing a market drop in the early years following settlement can create serious problems that go beyond the immediate drop in value of your invested settlement proceeds. Such a drop in value, combined with excessive withdrawals, could reach a point where your settlement proceeds might not last as long as you planned and need. If you have no other means to support yourself, possibly with significant medical needs, and without family resources and support, that could prove catastrophic.
William F. Sharpe, the Nobel Prize-winning professor of finance, emeritus at Stanford University's Graduate School of Business has described decumulation as "the nastiest, hardest problem in finance": the challenge of managing finances during retirement. This critical phase, known as the decumulation stage, involves transitioning from accumulating wealth to drawing down assets to sustain one’s lifestyle. But decumulation risk is not just the province of the retiree.
Professor Sharpe acknowledged that there is no easy solution to the Decumulation dilemma.
The core of the challenge lies in striking a delicate balance between three essential aspects:
For recipients of legal settlements, some financial products such as structured settlement annuities (like annuities with cost-of-living adjustments) can mitigate investment uncertainty and address mortaliuty risk.
4structures.com, LLC
The Structured Settlements and Settlement Planning Company
43 Harbor Drive, #309 Stamford, CT 06902 USA
888-325-8640
646-849-1588
New York City (Manhattan, Bronx, Brooklyn, Queens, Staten Island), Westchester(NY), Nassau County (NY) , Suffolk County on Long Island (NY), Albany County (NY), Oswego County (NY), Steuben County (NY), Broome County (NY), Onondaga County (NY), Monroe County (NY), Fairfield County (CT), New Haven County (CT), Hartford County (CT) New London County (CT), Tolland County (CT), Litchfield (CT), Middlesex (CT) , Bergen County (NJ), Middlesex County (NJ), Ocean County (NJ)
Structured Settlement Experts and Settlement Planning Consultants for settlements from claims or lawsuits arising out of Aviation accidents, Medical Malpractice, settlements involving Serious Personal Injury, Wrongful Death, Wrongful Incarceration, Employment, Civil Rights, Discrimination of any type, Auto accidents, Motorcycle accidents, Maritime accidents, Workers' Compensation, Product Liability, Real Estate Liability, Construction Defect claims or lawsuits, Landlord/Tenant,
Property, Attorney Fee Deferrals, Funding Agreements, Structured Installment Sales, Environmental Liability and Commercial Dispute settlements.
Structured settlements and structured settlement brokerage, settlement planning, Sudden Money®, financial transitionist, funding agreements and insurance related services provided by 4structures.com LLC.
Financial Advisory Services provided through Groove Financial Advisors , LLC, and its service partners.
Fiduciary services, including the custody and administration of trusts provided via service partners.
Securities and Insurance Products are NOT Insured by the FDIC, nor by any other Federal or State Government Agency, are NOT a Deposit of and are NOT Guaranteed by a Bank or any Bank Affiliate, and securities MAY lose value.
4structures (USPTO Reg. 4640532) , 4structures.com (USPTO Reg. 4640531) , We Know Structured Settlements (USPTO Reg. 3089738),
Because Certain Sells (USPTO Reg. 6237309) and We Know Structured Sales (USPTO Reg. 3490489), are Registered Trademarks of 4structures.com LLC.
John Darer is a Registered Trademark of John Darer (USPTO Reg. 4674907)
John Darer California insurance license 0761076
4structures.com LLC CA license OF19785 d/b/a 4structures Settlement Insurance Agency