Rule One: Don't Lose Money

Insulate yourself from catastrophe with
structured settlements and secure income annuities
during good and rough economic times.
August 16, 2019 - Few choices in life are as critical as the ones you make to secure your financial future.

Hire the wrong money manager (Bernie Madoff), buy the wrong stock (Enron) or simply fail to reassess finances during times of economic volatility and your fortunes can change in a hurry.

The adverse impact of drastic wholesale financial losses on one's overall well-being cannot be understated. Consider suicides increased 25% during the depths of the Great Depression and similar increases occurred during the more recent Great Recession.

Television and radio commercials may lure you into thinking "if you're not making (insert ridiculous number here) percent on your investments, then you are doing it all wrong and need to call us," even as the fast-talking disclaimer at the end of the commercial reveals the limitations of their insincere ploy.

"If it looks too good to be true, it probably is."

Anon

True, some investments can skyrocket for a time. But dollars to donuts those commercials will be off the air and the company hiding behind bankruptcy laws when the market changes and your money is gone.

Slow, steady and even keel always wins the day.
Primum Non Nocere

It's a shame only prospective doctors take the Hippocratic Oath since "First, do no harm" is sage advice for all of us regardless of background or circumstances.

Modified to apply to one's financial situation, the Oath could easily read "First, don't lose money." After all, even money stuffed in a mattress is better than losing 10%, 20%, 30% or more as has occurred in past recessions.

People with limited ability to earn future income are especially vulnerable to detrimental consequences of sharp declines in their net worth. Consider:

  • A car accident survivor rendered paraplegic now totally dependent upon cash flow from his injury settlement proceeds to provide medical care and support for life;

  • A 55-year-old who successfully wins a court battle for wrongful termination but whose job prospects are grim for the duration of her working life;

  • A near-retiree whose days in the workforce are coming to an end and who needs to ensure their 401(k) balance will be sufficient to supplement Social Security;

  • A widower with young children whose principal wage-earning spouse was killed and who needs to ensure the insurance settlement proceeds can support his family;

  • A wrongfully imprisoned exoneree with limited work history who needs to ensure her wrongful incarceration settlement lasts a lifetime;

  • A plaintiff attorney who wants to parley his attorney fee from a career case into a series of secure, guaranteed, tax-deferred cash flows;

  • A trustee for a family inheritance who wants to defer capital gains on several investment properties the estate needs to liquidate.

These are but a few of the real-life situations our safety-and-security-seeking clients have turned to us for help with in recent months. They all have one thing in common:

They'd rather earn some money than lose any money.

Safety and security trump speculation when you need those funds to sustain you.

Even though nobody can ever accurately predict the future, with so many signs pointing to some rough times ahead, structured settlements and guaranteed income annuities offer security for those who can't afford to live without it.

"Rule No. 1: Never lose money.
Rule No. 2: Never forget Rule No. 1."

Warren Buffett
For Retirement and Post-Injury Settlement Security,
You Can't Beat Annuities
In the coming days, weeks and months you'll read and hear a lot of back-and-forth about whether or not we're heading into (or are already in) a recession. The "experts" will weigh in with advice and you'll make yourself dizzy trying to keep up with them.

Those who worry far less about such things and who sleep better at night are those receiving guaranteed, secure income from structured settlements and income annuities.

If you have or will be receiving money you absolutely, positively cannot afford to lose, a structured settlement or income annuity should be the first thing you consider.

Structured settlements and retirement annuities may not be the shiniest tools in the financial toolbox. But if you were stranded in the middle of the ocean, would you want your rescuers to throw you a solid gold life buoy? Or a proper, less flashy flotation device designed to carry you safely to shore?

Take care of your fixed needs first. Play with the rest if you must.
How Can We Help You Steady Your Life?
If you need advice on how best to put your money at risk, this newsletter isn't for you.

But if you are like most people who prefer a solid financial foundation free from worry, we can help.

We're not against sensible, balanced investing in stocks, real estate or many other wealth-building options for many people. Even some with structured settlements and retirement annuities can benefit with some market exposure.

But because we deal primarily with those who don't get second chances if they incur losses, our focus is and will always remain preservation over speculation.

So, don't burn your money or even let it get too close to the fire. Ashes aren't legal tender, after all. Once it's gone, there's no getting it back.

I hope you found our newsletter helpful. Thank you for reading and best wishes to you for continued success in your personal and professional lives.
Dan Finn, CPCU, MSSC℠, RICP®
Master's Certified Structured Settlement Consultant℠
Retirement Income Certified Professional®

"Building lifetime client relationships!"
CA Insurance License: 0A96173