My Annuity Adventure Part III
The Quest for Understanding via Simplicity.
I have been professionally helping people organize their lives, their homes and their office spaces for many years. So my quest for understanding annuities has led me back to my basics. Simplicity!
Organizing thoughts is similar to organizing your closet. When things are all jumbled together and confusing, it is wise to divide things into simple categories like piles of shirts, sweaters and coats. I have two annuity piles.
Pile# 1: Structured Settlement Annuities
Pile #2: Single Premium Immediate Annuities (Immediate Annuities for short).
These are the two types of annuities Prosperity Partners buys.
The next step in our closet organizing is to get rid of the things that do not fit you, or you do not use anymore. I narrowed down my search to Structured Settlement Annuities, setting the Single Premium Immediate Annuities aside for another day.
JohnHancock.com gives a very easy and simple description of a structured settlement annuity. A structured settlement annuity provides injury victims or the victim’s family with a steady stream of income over time. Instead of taking a lump sum payment – awarded through a pre-trial settlement or court order – the claimant takes an annuity. Then the victim or the victim’s family can receive regular tax-free payments to meet future medical expenses and basic living needs. A similar option exists for personal injury lawyers seeking regular income over time versus a lump sum fee.
I will continue to organize our annuity closet in the next post.
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