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AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: Dennis S
Date: June 29, 2016 01:33AM
I don't have any details. He was hurt working in Iraq a few years ago and they have been paying him a monthly payment. I don't know how much or for how long. I'm not going to ask him those questions. He's 58 and has a job driving a truck locally. He got a letter today asking him if he wants to meet a rep and discuss a lump payout.

First, I imagine since they are paying a rep to come down here, it's in their interest (and not his). Second, he is awful with money - not necessarily blowing it, but just making unwise assumptions and decisions. I'm sure he'll do that in this case - help out his kids, help out our mom, upgrade his pickup, and on and on until it's gone.

Does anyone know if this is a common tactic by these companies and just how bad are the scales tipped? Do you have an answer to why he should retain the stability of a regular check to supplement his job?
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: N-OS X-tasy!
Date: June 29, 2016 01:37AM
He should contact a financial advisor.



It is what it is.
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: ADent
Date: June 29, 2016 02:12AM
Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: pRICE cUBE
Date: June 29, 2016 02:26AM
I don't have the story but I read somewhere once that lottery winner that tend to take the lump sum tend to burn through the money faster, to the point if bankruptcy.

If it were me, I would not tell anyone about the lump sum. People have a sudden way of falling into sudden need when someone has a lump sum of money around. Just let them keep thinking that I am getting the monthly payments if they already are aware of it. Then you can help as you see fit and not become people's I made bad choices and I need you to bail me out fund.



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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: Speedy
Date: June 29, 2016 05:42AM
He will take the lump sum even if you can prove it is not in his best interest. Nothing you can do about it.



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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: Mr645
Date: June 29, 2016 06:04AM
Make sure it's not a sales pitch for a buy out. Where a third party takes over the monthly payments in exchange for giving him a l;ump sum. Often they take 3 or 4 % right off the top.
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: Pam
Date: June 29, 2016 06:22AM
It's a safe assumption that they will pay out less than they would have over his lifetime. It'd be up to him to invest it and live on the investments to the same level. If he takes a lump sum and spends large amounts, he'll run out of funds way too early.

Maybe you could get him to understand that if the money coming in now isn't enough to help him get a truck and help mom on a monthly basis, then he'll find himself in even worse financial conditions in as little as 10 years.
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: 3d
Date: June 29, 2016 09:02AM
Quote
Dennis S
..he is awful with money - not necessarily blowing it, but just making unwise assumptions and decisions.

DO NOT TAKE THE LUMP SUM.
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: mattkime
Date: June 29, 2016 09:15AM
i don't have a strong opinion about lump sums in general...but if a large company is coming to you to sell you on a lump sum.....its unlikely they're acting in your interest.



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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: GuyGene
Date: June 29, 2016 09:46AM
No! I sure hope he doesn't let the lump sum turn his head. mattkime got it right. agree smiley



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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: N-OS X-tasy!
Date: June 29, 2016 10:30AM
Let me rephrase my previous response:

Don't get involved in the financial matters of family members. He should contact a financial advisor.



It is what it is.
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: 3d
Date: June 29, 2016 10:50AM
You know your brother better than any financial advisor out there. Without going into much detail,, just tell him to ignore the letter and keep the monthly payments going. "It's for the best".
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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: Filliam H. Muffman
Date: June 29, 2016 11:23AM
Quote
3d
You know your brother better than any financial advisor out there. Without going into much detail,, just tell him to ignore the letter and keep the monthly payments going. "It's for the best".

agree smiley



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Re: AIG paying my brother settlement monthly. They are now asking him if he wants a lump sum.
Posted by: mikebw
Date: June 29, 2016 03:29PM
I agree with the above, but just wanted to say that in a scenario where he currently has a large amount of high-interest debt he could stand to resolve that by taking the lump sum, thereby opening a door to a potentially better financial future. BUT, given what you already know I doubt that the outcome would be that bright.
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