Taxable Portfolio vs. Tax-Free Structured Settlement

The chart above compares the returns on two hypothetical $100,000 settlements. One is invested in conventional taxable investments at an interest rate of 6 percent. The other flows through a structured settlement earning the same rate.

After 20 years, the total net income generated by the lump sum settlement is $158,991. By contrast, the total net payout generated by the structured settlement is $213,994 - a 35 percent increase.