The Cost of Waiting

When to Say "YES" to Annuities

Sometimes waiting to spend money makes good financial sense.

Buying patio furniture after Labor Day or calendars in January, for instance.

Having your furnace serviced in the summer or taking a cruise in the off season are all examples of choices thrifty people make.

But when it comes to arranging for your lifetime security, does the waiting game still make sense?

The Break-Even Rule of 100

One of the most common reasons given by people who reject the opportunity to structure their insurance settlement proceeds or attorney fees or who put off rolling over their retirement savings into an annuity is that they believe interest rates are "too low."

Often, they don't actually know what interest rates are paying or what they will receive by annuitizing.  Instead, they simply make assumptions based on what they've heard others say.

So they choose cash instead assuming they'll be able to make up any lost ground once interest rates improve.

Setting aside the possibility that interest rates may not rise in a meaningful way for a long, long time (or could actually drop), what if you could make a more informed choice about what you should do?

This is where a handy little thing called the "Break-Even Rule of 100" can be useful.  This simple formula can help quantify the cost of waiting and help you make better decisions:

100 / (interest rate increase %) = # years it takes to break-even

We just uploaded a new pamphlet from one of our life company partners to the Brochures section of our website that covers a few examples of the Break-Even Rule of 100 in practice.

Many people fail to realize waiting can be so costly. 

But by pushing a few buttons, anyone with basic calculator skills can see for themselves that it's entirely possible for rates to improve in the future but not enough to offset what they will lose by waiting because of the time value of money.

Additional Considerations

Measuring the cost of waiting is only part of the story though. 

Because physical injury structured settlements pay benefits (principal and interest) that are 100% income tax-free, the advantage of structuring NOW can be compounded because post-settlement annuities are priced differently and are partially taxable making structured settlements the superior choice.

And since structured settlement decisions must be made prior to any negotiations being finalized, you won't get a second bite at this apple.

Finally, because it's possible to "even out" a high tax bracket this year by structuring taxable settlements and attorney fees in such a way that they are paid out, with pre-tax interest, over future years (when an anticipated tax bracket might be lower), passing up structuring these opportunities can prove even MORE costly.


There might be dozens of good reasons to not structure settlements or attorney fees or to hold off converting one's retirement nest egg into an annuity. 

But interest rates being "too low" should not be one of them.


Securing your future with guaranteed income that is safe will never go out of style.  Choosing a structured settlement, structured attorney fee or other annuity can help accomplish just that.


So grab your calculator and run a few scenarios for yourself.  Then call us to let us know how we can help you. 


Thank you for the opportunity to be of service and best wishes for continued Success!

Dan Finn, CPCU, CSSC

Certified Structured Settlement Consultant

[email protected]



NOTE:  This newsletter is presented for educational purposes only and should not be construed as tax or legal advice.  All rights reserved.


Find Out How
About Finn Financial Group 
The Finn Financial Group is a full-service, specialty planning firm with a commitment to ensuring the long-term financial stability of its clients. We believe this can best be achieved through a stream of guaranteed, tax-advantaged payments carefully tailored to each individual's specific needs. Our diligent work has resulted in a long list of satisfied clients across all lines of advocacy and a high degree of trust. 

Impacted by a Hip Recall?  


If you have been impacted by the recent DePuy ASR Hip Recall, Finn Financial Group is here to help. 


Find out more and watch an informative video now at

Our Services
The Finn Financial Group provides customized, guaranteed future income options and ancillary services to a variety of clients throughout the United States. We pride ourselves on our commitment to the overall financial well-being of the individual. For a greater understanding of the services we provide, click on your area of interest.

Find Out How


Click the image above to watch a short intro video about The Finn Financial Group or visit    


CA Insurance License: 0A96173