Litigation

 "A structured settlement for workers? compensation or physical injury tort claims is a special provision under the United States Internal Revenue Code [Sec. 104(a)(1) and (2), respectively] that exempts all payments from current year income taxation, whether received as a lump sum or over a period of time. If the entire settlement is taken as a cash lump sum, that amount is excluded from current year taxable income, but the first dollar earned on the award becomes a taxable event" -

-Robert Risk Structured Settlement Services, LLC, an affiliate of Settlement Professionals, Inc. (SPI)-Tulsa, OK  ("Okie")

We Carry "Okie"

1. Definition of "Basis"- Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. Source: Investorwords.com
2. Perhaps Risk was referring to "basics"?
3. A structured settlement IS NOT defined in Internal Revenue Code Section 104.    

"If the total settlement amount is taken as a cash lump sum, the growth from an investment will be subject to federal and state income taxes, which reduces the net performance of the investment by the marginal tax rates, which can approach 50%".

-Robert Risk Structured Settlement Services, LLC, an affiliate of Settlement Professionals, Inc. -Tulsa, OK.

We Carry "Okie"

1. The total settlement amount is the amount before the attorneys take their cut  
2. Robert Risk misleads he reader by failing to account for tax treatment of municipal bonds under IRC 103.
3. Robert Risk misleads the reader by omitting capital gains from his analysis.Only short term capital gains are taxed at ordinary income tax rates. Short term capital gains are those investments that are held for a year or less before being sold. Long-term capital gains, which apply to assets held for more than one year, are taxed at a lower rate than short-term gains. The maximum long term capital gains rate is 15% in 2010.  Based on this point alone those who work with Risk should be checking his math.
4. The net investment performance is the amount left over after deductions for investment management fees, tax and other costs have been taken away.  Net investment performance allows for both gains (positive) and losses (negative), depending on actual investment performance.

There is no excuse for the inability of any settlement professional to articulate the BASICS. Why should the rest of have to carry "Okie"?

This  "Lab-a -oscopy" brought to you by someone who cares about financial literacy in the profession.