Building a lifetime plan for a young claimant

CASE STUDY DETAILS

Planning for decades, not years

A young claimant received a multi-million-dollar wrongful death settlement after losing a parent. The settlement needed to support him for decades, not just cover immediate costs.

A traditional annuity alone would lock in payments certain to lose ground against decades of rising costs. The plan needed near-term stability and market growth on the back end, where time favors the claimant.

Designing the structure

Through Growth Structured Settlements (GSS), the team structured $1 million into two tranches. Payments are larger through age 55, when they are most useful for major life events, then step down once other investments and retirement funds can offset the reduction. Funds have the opportunity to grow over time before distributions begin.

Modeling long-term outcomes

Invested through BlackRock, the structure models a total benefit of $10.9 million on $1 million of funding. The first $600,000 tranche models a baseline of $29,950 per year, beginning 15 years after funding and paid for 20 years. The second $400,000 tranche models $20,000 per year, beginning 35 years after funding and paying for 20 years. Both tranches pay more if the fund performs, with no cap on market upside.

Delivering Lasting Value

The plan pairs guaranteed near-term stability with market-based growth on the back end, so payments are designed to grow rather than erode. Market-based settlements can serve claimants with multi-decade needs better than annuities alone.

This is a hypothetical scenario created for illustrative and educational purposes. It does not describe an identifiable claimant or actual client results. Investment projections are hypothetical and are not guarantees of future performance. Market-based investments involve risk, including potential loss. Tax treatment depends on the nature of the underlying claim and the terms of the arrangement.

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Imagine what we

could do together.

Prospera Market Strategies create market-based structures that turn simple settlements into meangful legacies.

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Feel Connected

Imagine what we

could do together.

Prospera Market Strategies creates market-based structures that turn simple settlements into meangful legacies.

LET'S MEET