The dollar is shrinking in value: How it affects your lawsuit settlement.

March 9, 2008

The dollar is at a record low. It shows no signs of going back up. What does this to to your settlement? This SHRINKS it! Unfortunately neither you or I can control whether it goes up or down but you can assert SOME control. You can counter this affect by getting a lawsuit cash advance and then investing in something that will earn more interest than the dollar devalues. Recently, I had a client ask me, “Do you think I should borrow money from a bank or get an advance on my lawsuit to buy this business?” He had gotten a smaller advance from me and was looking into buying businesses. Smart man. My answer to him was this, ‘When you borrow money from a bank you are creating debt. When you add to the interest the devaluation of a dollar it makes it VERY difficult to pay it back. By getting a settlement advance, you are using an asset, you just don’t have the money in your hands yet. This is what the wealthy do.” He then realized how much of a better deal that was. In addition, I asked him if he wanted the bank to be a partner in his business. He replied “no”. He then realized by getting an advance, he gets the dollar today at it’s current value and by using his settlement to fund his business purchase instead of a loan, he doesn’t have debt and the bank is not a business partner.

While you may not be purchasing a business, you should keep a watch on what the dollar is doing and assess how it will affect your settlement.

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