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John Darer of Structured Settlements 4 Real pointed out an error in Settlement Quotes most recent post. We provided a chart that illustrated the amount of money an individual could receive if they invested their lump sum payment after factoring their structured settlement. It is important to note that the future value figures are not accurate due to tax implications involved in investing money.

To clarify: the initial lump sum check that an annuitant receives after factoring a structured settlement is tax free, but once this money is invested it can be taxed. The figures that were illustrated in Settlement Quotes latest post were not taxed, therefor they are inaccurate.

Our goal of the last post was not to mislead annuitants into thinking that factoring a structured settlement can yield more money by investing the lump sum at a 9% interest rate. This money will be taxed! One of the great benefits of a structured settlement is that the annuitant receives periodic TAX FREE payments.

If you have any questions, please let us know.

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