How Structured Settlement Annuities Offer Tax-Free Income

In Episode 47 of Annuities with Fexingo, Lucas and Luna explore structured settlement annuities — a niche product that pays tax-free periodic income to injury victims. They break down how Section 104 of the tax code works, why insurance companies use special purpose vehicles, and how a structured settlement compares to a lump sum for a plaintiff. The episode walks through a concrete example: a $500,000 settlement for a 45-year-old, showing the tax savings and yield differential versus a taxable bond ladder. They also highlight the secondary market — where investors can buy assigned payment streams at a discount, earning yields between 4% and 7% in today's rate environment. The conversation concludes with a caution about the complexity and illiquidity of these instruments. Perfect for advisors working with personal injury clients or investors seeking alternative fixed-income assets. #StructuredSettlement #Section104 #TaxFreeIncome #Annuity #PersonalInjury #LumpSumVsAnnuity #SecondaryMarket #FixedIncome #QualifiedAssignment #Insurance #WealthManagement #RetirementPlanning #Finance #FexingoBusiness #BusinessPodcast #AnnuitiesWithFexingo #LucasAndLuna #Episode47 Keep every episode free: buymeacoffee.com/fexingo