Structured Settlement Payments – Get Straight Facts

Structured settlement means transacting a settlement deal in a structural sequence. The provision was introduced for the mutual benefit of both the plaintiff and the defender. There are many implications regarding settlement and its viability. Structured Settlement payment is also conducted by insurance companies so as to ease their claim reimbursement burden. The basic purpose of this concept is to fair the compensation over a certain period of time. It allows the compensator to enjoy the benefit of time. Thus a settlement is basically meant to help a lawbreaker or a liability holder in paying off his compensation by dividing the compensation sum over a comfortable span of time.Now you know how structured benefits the payer. So, you must be wondering what are the benefits to the receiver and why would he settle in for a settlement. If you are a plaintiff or the claimant in a particular case you can derive multiple benefits from a settlement option. Firstly, you can negotiate for a higher settlement amount. Is not that good enough? The concept is pretty obvious. You demand for a settlement. You name the settlement digit. And the opposite party is not agreeable with the sum.Under such circumstance when the defending party is not ready to settle with huge compensation amount, you can offer the option of a settlement. You can simply say that, “pay me in chunks, but pay me the entire amount”. This allowance of time is the best way to negotiate for a better compensation. By allowing for structured settlement payment you can surely end up with a 20 to 30 percent higher claim money.Even though the option seems quite easy and straight, there are certain risks associated with this whole concept of structured settlement payment. The most basic risk is related to regular payment guarantee. What if your compensator ends up being a bankrupt? What if he dies before the settlement term expires? To answer these questions, you can bargain for insurance with regards to these possibilities while negotiating the terms of a structured settlement.

How to Protect Your Small Business Ideas With Business Structures

If you have the ingenuity to come up with a stellar idea, develop it into a business, and generate profits with it, you will likely have the foresight to protect that valuable entity. Here, we talk about how you can protect your small business ideas by keeping them behind the business castle wall: your business structure.Business structures, or entities, are generally classified into one of these categories:
sole proprietorship
partnership
limited liability company
corporation
Each type has pros and cons. Here, we will consider some of those.The sole proprietorship is an unincorporated business run by one person, and is by far the simplest form of business to operate. The reasons are straightforward:
It doesn’t require much, if any, registering or paperwork
It is very easy to start, change, or close down
The value of the business (viewed by both buyers and the IRS) is based upon the skills and assets of the owner, not stock
The sole proprietorship may be a simple form, and is often best when there is limited capital and personnel, but there are distinct disadvantages:
The capital is limited to the owner’s capital or what he/she can generate
The owner cannot be an employee of the business for tax purposes
There is unlimited liability for the actions and debts of the business
Liability is an issue in running any business, and increasingly so with the litigious society in which we operate. Liability is the ever-present dinosaur in the cave, ready to break out at anytime. You can’t know when or why or how it may burst upon the scene of your business, but history has proven (as recent as yesterday, or any day) that IT DOES HAPPEN.Simple can be good, but it can also be dangerous. When a sole proprietor operates, his capital, assets, and skills are what make up the business, and these assets become his payment in the event of a lawsuit. A court can freeze assets, force the sale of a residence, attach bank accounts and many other financial nightmares that you can imagine.Fortunately, there are other business entity structures more geared to protecting your small business ideas and your thriving business.Another of business is the partnership. It is a relationship between 2 or more persons who join together to carry on a trade or business. There are some advantages:
It involves more than one member, so it has greater potential for capital than a sole proprietorship
It combines the management skills of multiple people
It has pass through taxation
The partnership also has some disadvantages:
The authority for decision making is divided
Partners cannot be employees for tax purposes
Unlimited, joint and several liability among members
Like the sole proprietor, the partnership members can be held liable for all actions and debts of the business. In addition, there is joint and several liability, which means each partner is responsible for the actions and debts of each other partner.It doesn’t take much thought to see how this can (and frequently does) create issues. Different people have different ideals, different risk tolerances, and different methods. If one partner decides to act in a way in which another partner believes is risky, the other partners often times have no recourse but to dissolve the partnership. Because of this, many partnerships do not stay intact for long.The limited liability company is a more flexible, and in many ways, more desirable business structure. An LLC may be treated as a sole proprietorship, partnership, or a corporation. A single member defaults to sole-proprietorship, 2 or more members defaults to partnership, and either can elect to be taxed as a corporation or a subchapter S-corporation.Advantages are:
Flexibility: members can be individuals, other partnerships, other corporations or even other LLC’s.
Management flexibility and pass through taxation
Members have limited liability for the actions and debts of the LLC
Disadvantages:
It is governed by the laws of the state
It is subject to a base annual tax (in some states) which is increased after profits rise to a specified ceiling
All members must also pay individual earning taxes
Over all, the LLC is a very clever and flexible way to set up a business, but the main advantage is the limited liability to the partners. This is an increasingly valuable quality as revenues and profits increase, because more money means higher chances of being sued. Following the old “risk and reward” equation, as the reward goes up, so does the risk.Corporations are an advantageous way of establishing a business, but especially so when the profits and scope of operations increase. The law treats a corporation as a legal entity, similar to a person. It has perpetual life, meaning it does not pass away when the originator passes – the corporation remains a legal entity until such time it is formally dissolved.Advantages:
The transfer of ownership is relatively simple
It is easy to raise capital and expand the business
All shareholders can be employees of the corporation, and have limited liability
Disadvantages:
Double taxation (C Corp), meaning the corporations profits are taxed and shareholders’ earnings are taxed
It can be difficult and expensive to organize
The corporate officers must follow procedures, such as board meetings, corporate minutes, and others
Again, corporations are ideal for any business that has expanding operations, substantial earnings, or defined liability. Some businesses, by their very nature, encompass more risk, and some businesses are quite complex and require a more centralized structure. For these reasons and more, the corporation can be the best form of business to operate in.Corporations were designed to encourage business. The corporate veil is a strong one and protects people from losing their personal assets in a business catastrophe such as a lawsuit, and empowers them to grow and expand without fear. However, the veil can be pierced, but essentially only one way: fraud. Fraudulent activity among officers of a corporation can pull back the protection and expose them.

Binary Options Trading As an Investment Vehicle

It is human nature to try to make the most of our assets, including our financial assets. Apart from those people who have no ambition and throw away their money, the majority look for ways to increase the amount they have. They look to the future, and try to build enough resources to let them see out their retirement in a financially stable way.One of the most common ways to try to build up cash reserves is to use existing cash to put into some kind of investment scheme. There are many different investment vehicles available, and one of the most popular ones in recent times has been binary options.Like all investment schemes, there is an element of risk involved, but one of the reasons binary trading has become so popular is it provides an opportunity to make substantial profits over a relatively short time period.Bad investmentsThere was a time when people were quite happy to leave their spare cash in a bank. They felt it was secure there, and that gave them such confidence that they did not worry too much about the poor rates of interest they were receiving.Today, unless you have a very large sum of money to invest, putting your money in a savings account is like throwing it away, albeit over a long time period. Interest rates on standard savings accounts are now almost always lower than the rate of inflation.That means that even though the dollar amount in your savings account may be growing year on year, its real value is actually falling. In other words, you can buy less with the amount in your savings account now than you could with the amount you originally invested. In the present financial situation, putting your money in a bank savings account has to be regarded as a bad investment. This is especially the case for long term goals, such as a comfortable retirement.Why binary options trading is a viable alternative?As already stated, binary trading provides a way to make decent profits over relatively short time spans. One of the key aspects of this type of trading is that results are known quickly, giving investors the option to take corrective action before large losses are incurred.Later, we will look at how this type of trading compares to other forms of investment. First, it is important for the potential trader to understand what this type of trading involves, and how it is different from other more standard types of investing. The best way to do this is to compare this type of trading with stock market investments.To make our explanation clearer, we are going to create a fictitious company called Ace Products Inc. whose stocks are traded on the NASDAQ. The company is doing well, and its share price has risen by more than a dollar in the last year to $7.95 today.StocksStocks or shares are issued by companies that have floated on one or more of the world’s stock exchanges, such as the NASDAQ or the London Stock Exchange. Companies issue shares at a given price, and anybody can then buy some of these shares. Shares are bought and sold through the stock exchanges. The price of shares is dictated by supply and demand. The more demand for a given the share, the higher the price will be.When you buy shares in a company, you become a part owner in that company, no matter how small your share allocation is. That means you have a say, albeit a tiny one, in how the business is run.Shareholders are entitled to vote at the company’s AGM, where they can take part in votes to appoint people to the board, and to approve the company’s annual accounts. Most people who have small shareholdings do not bother to attend the AGM to do this. They can appoint a proxy to vote on their behalf. If they do not attend and do not appoint a proxy, they assign the right to vote on their behalf to one of the board members.If the company they have invested in makes a profit, the board may decide to issue a dividend. The company decides it has a surplus of cash that will be divided amongst the shareholders. Each share will have some monetary value, and the total payable to a shareholder is the share dividend value multiplied by the total number of shares he or she owns. When the dividend is paid out, most companies permit shareholders to reinvest the money by purchasing new shares, or they can opt to receive a cash amount.For the purposes of our illustration, we will assume you own 1,000 shares in Ace Products Inc., which you bought 6 months ago at $7.25 each. The company has announced that it will pay a dividend of 2c per share. That means you are entitled to a $20 payout from the company. For simplicity’s sake, we will ignore brokerage fees and bid/offer spread (of which more later), but if you decide to sell the shares, you can now make a profit in your investment. Here’s how:Sale price: 1,000 x 7.95 = 7,950Dividend: 20Gross worth: 7,970Amount invested: 1,000 x 7.25 = 7,250Gross profit: 720The key factors here are:1. As a part owner of the company you got a dividend of $20 from profit distribution.2. When the company is doing well, the price of shares tends to rise.3. If the company did not do well, there almost certainly would have been no dividend, and the price of shares is likely to have fallen.4. If the price of shares falls below the price at which you bought, your holding will be worth less than what you paid for it. You will have just two choices. You either sell at a loss, or hold on to your shares in the hope that the share price will go up again.5. When you bought your shares, you did so because you expected the share price to rise.6. You own your shares, and you can hold on to them for as long as you like.Binary options tradingThe term “binary options” harks back to the early days of this type of trading, when there were only two possible outcomes. You either made a profit or make a loss – there was no other scenario. Today, there are many more complex ways in which you can take part in this type of trading, but beginners should stick to the most basic.Binary trades always have an underlying asset. This could be a stock, a currency, a commodity, a stock market index, and so on. We will use Ace Products Inc. as our underlying asset.A key element of this type of trading is that you must specify an expiry time in the future. This could be just a few minutes, an hour, a month etc. Another key element is the strike price. When you make a trade, you take a position that says the strike price will be at or above a certain level at some time in the future.If you think that Ace Products Inc.’s share price will have risen to $8 in 30 days’ time, you can make a call option. You back your belief with an investment amount. On the trading platform, another trader will have the opinion that your prediction is wrong. He or she will make an offer that will be a percentage of your investment amount.You both enter into an irrevocable options contract. When the contract expires or closes, the Ace Products Inc. will either be at or above the $8 you predicted. Is so, you get your investment amount back, plus the additional percentage you were offered. If the share price is below $8, you lose your entire investment amount.When you make a call option in a binary options trade, you are not buying anything physical. If you take a call option on the share price of Ace Products Inc., you do not own any shares in the company. Taking a call option means you think the price of the share is going to increase to at least the specified price at the specified time.For the sake of completeness, it is worth pointing out that even if the share price of Ace Products Inc. had exceeded $8 during the lifetime of the contract, which is irrelevant. It is the price at the exact expiry time that counts.With this type of trading, you are not restricted to making contracts based on rising prices. You could also make contracts based on the value of the underlying asset falling. This is termed a “put” option. This works in exactly the same way. For example, you can take a put option that Ace Products Inc. price will have fallen to $7.90 in 30 days’ time. You will be shown an offer amount that you will get if you are right. If you are wrong, you lose your investment.Why is binary options trading better than investing in the stock market?Hopefully, it should be fairly clear from the example above that this type of trading provides you with a vehicle for making quick profits. This is almost impossible with share investments.If you buy or sell stocks, there are other factors you must take into account. We mentioned the bid/offer spread above. This is often referred to as the bid/ask price. When you see a quoted price for Ace Products Inc. share price, which is an average of the selling price and the buying price, because these two prices are different. The amount that you can buy a given share for is always higher than the amount you could sell it for at that particular time. The difference between the two is the bid/offer spread.The bid/offer spread can be quite substantial, and it is not unusual to see spreads of 1 – 2%. That means if you buy some shares in Ace Products Inc., the share price has to rise by at least the bid/offer spread percentage before you could possibly make a profit on selling the shares. In addition, you will almost always have to pay brokerage fees on both your purchase and on your sale.This means your investment is going to be tied up for some time before there is any chance of making a profit on it. Another vital aspect of investing in stocks is that there is no way to make a profit or even break even if the stock price goes down.If the stock price starts falling, you are faced with the agonizing decision of whether you should sell at a loss, or wait in the hope that the price will rise again. There is nothing you can do to improve your position. Another important factor is that you will have to make quite large investments in stocks to gain a reasonable profit.With binary options trading, you can make a good profit from a series of small investments. You will know the results very soon, and you have the opportunity to offset negative results relatively quickly. In other words, you have much more control over your investments.Is binary options trading better than investing in property?As with stocks, when you invest in property you own the asset. You will have to make a large investment in buying property, and that can be tied up for quite some time. The costs of buying property are high and there are many associated fees for owning/buying a property. You can expect to pay about 10% above the purchase price in fees, duties and taxes. You will also have to pay legal fees when you sell property.All this means that you cannot possibly make a profit from property investments until the price of your asset has risen by at least 10%. That means your investment has to be considered a long term one, and your capital is completely tied up. As with stocks, if property prices go down instead of up, there is no way for you to regain your investment.So in conclusion, there are always risks involved in all kinds of investments. When you invest in stocks, property or other standard investment vehicles, you have no way to offset falling prices. Investments in these vehicles tend to be long term.Investing in binary options trading gives you much more control over your capital. You are dealing in a short-term marketplace, so you get the opportunity to take corrective action if trades go against you. You can invest small amounts of money and still have the chance to make good profits. Binary options trading is certainly something to which the savvy investor should give some thought.

6 Qualities/ Details To Consider About A Property!

If, you are a qualified, committed, potential home buyer, be careful to, pay close attention, to many details, but, be certain to fully consider, and examine, the property, characteristics, etc, as well as the house, before committing to purchase, what, to most, is their single – biggest, financial asset! There are many characteristics to consider, but, this article will briefly, consider, six of the key ones. After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have discovered, few buyers, are, as prepared, as they should be, and it would be wise, for them, to pay, far – more attention, to many aspects, related to the property, the house, is situated – on! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these six, and why they are essential, important considerations.

1. Size of property: Are you seeking a specific – sized, property? In general, larger properties, require more maintenance, and expense, to up – keep! How would you like to balance, your needs, wants, reality, costs, expenses, privacy, and other considerations, and, is, the specific size of this particular property, up – to, your preferences, etc?

2. Tree – filled, versus open: How much of your lot, is usable, and, how much is not? Different areas, have, specific regulations, regarding, protecting trees (as opposed to knocking them, down. How would this impact, your desired enjoyment, of the land?

3. Terrain: Is it, a hilly, flat, or something, in – between? How this terrain, affects usage, and possibilities, should be considered, from the onset! Does the pitch, of the land, keep water, from flowing, away, or towards, the house? Obviously, expansion – related issues, etc, are simpler, and less – costly, when property, is more – flat!

4. Distance from neighbors: Some prioritize personal privacy, and, thus, should seen properties, which are a significant difference, from their neighbors, while others, care, far – less, about this! Is there significant distance, to ensure privacy, or, some sort of barrier (such as bushes, etc)?

5. Frontage/ side – yard/ back: In many communities, frontage, is a major factor/ consideration, in terms of real estate taxes! What balance do you seek, between, frontage, front – yard, set – back, from the street, usable side – yard, and back (behind the house? Since, we are all different, with differing tastes, needs, and requirements, make certain, the property layout, fits your needs, and personality, etc!

6. Grounds condition: Evaluate the condition of the grounds of the property! How much will it cost you, to bring – it, to where, you desire? Will landscaping renovations, be urgently needed, and costly, or, basic? What is the overall condition, and what might require immediate attention?

Before buying a house, pay attention to the overall property, and, whether, it fits your needs, requirements, specifications, and will bring you pleasure! The better prepared a buyer is, the more he will enjoy his new home!