Whether you begin to take payments immediately or defer until sometime in the future, a structured settlement attorney’s fees annuity can help maximize and protect income for the rest of your life. It’s important to keep in mind that the average number of years spent in retirement is growing steadily. People are living longer as advancements in healthcare and science continue to improve. Understanding your life expectancy and how to manage the resources you’ll need to be comfortable in retirement are the first steps of successful planning.
Your Timetable for Retirement May Not Be What You Planned
Retiring Earlier, Living Longer
With longer life spans and an earlier retirement, you may live in retirement for more years than you expected.
Planning for the Future by Structuring Attorney Fees
As an attorney, you can enjoy some of the same benefits as your personal-injury clients by structuring contingent fees for future payment. Before you receive your next fee for an injury lawsuit, you should think about your future and what is most important to you. The first issue to consider is the income taxes that will come due for this lump-sum payment. Depending on your individual tax bracket and where you live, this could reduce your net income by almost half. If you had the opportunity to delay this income for up to 20 years, would that help you with your income taxes?
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What Other Plans Could You Make by Setting Up Different Payout Periods?
The Structure Carriers allow you to customize your payment streams specifically to help manage future needs. Benefit types include:
Payments to You or Your Firm
By electing to have payments made to your firm, you can guarantee income to help meet payroll needs or pay your business mortgage.
Design a Benefits Package to Fit Your Needs
By structuring your contingency fees, you benefit by deferring the income taxes you would normally pay. If you are already in the highest tax bracket, you will be paying the highest rate on all your new income. You can reduce your current income tax burden by postponing the income and spreading all of the taxable income over time. Instead of being taxed on the entire amount now, your income payments are reported to the IRS in the year you receive them.