Our calculator will provide you with the remaining life expectancy of the average Canadian of a particular age and gender, based on the most recent Statistics Canada life expectancy data*.
*Source: Statistics Canada, Life Table for Canada (2017-2019).
Our immediate present value calculator will provide you with the approximate present value of a future stream of $xxx.xx per year, paid monthly, for a given number of years. You will need to select the appropriate discount rate depending on the type of payments (level or indexed) to be made.
For tort claims in Ontario, the discount rate is set annually as per Rule 53.09 of the Ontario Rules of Civil Procedure and is noted as ON in the discount rate drop-down list.
Our deferred present value calculator will provide you with the approximate present value of a future stream of $xxx.xx per year (current dollars), paid monthly, for a given number of years after the deferral period. You will need to select the appropriate discount rate depending on the type of payments (level or indexed) to be made, as well as the length of the deferral period and the payment term.
The Present Value of $2500 per year, paid monthly, for 10 years using a discount rate of 3.00% is $21617.17
Our calculator will provide the current value of a past Court award adjusted for inflation. The current value is calculated using the most recent Consumer Price Index data available. If you are unsure of the month of the Court Award, you can select the Average annual option ("Use Avg. Ann.").
A $ Court award in , adjusted for
inflation*, would be equivalent to $ in
When considering whether a structured settlement is the best choice for part of your personal injury settlement, it is natural to wonder how a structure might compare with other investments. Often, before making a decision, people take our structure illustrations to a financial planner or advisor at their bank for a second opinion.
All too often, we are subsequently told “my financial advisor said he or she could do better” and, in the end, none of the settlement funds are structured.
The truth is that achieving a better result than a structured settlement, even in the current interest rate environment, is much harder than you might think. Even the most experienced and capable financial advisor would be hard-pressed to achieve a net return that matches the returns available from a structured settlement, much less outperforms them.
While seeking a second opinion is generally a good idea, bear in mind that traditional financial planners or advisors cannot implement structured settlements and, accordingly, their understanding of how structured settlements work is limited at best.
When comparing structured settlements to other investments, it is important to compare apples to apples, not apples to bananas! The Financial Planning Standards Council (FPSC) can be of assistance with this.
The FPSC recommends that prudent financial planners, when they are providing illustrations of projected gross returns for conservative investors, assume returns of no more than 4.48%, before fees and taxes. The FPSC guidelines can be accessed by clicking here. A return of 4.48% (which is a projection only, and not guaranteed) will then be reduced by fees and taxes and may also affect the plaintiff’s eligibility for various means or income-tested Government Benefits. When these often overlooked factors are taken into account, these other investments simply cannot compete with the “in your pocket” returns from a structured settlement.
Bear in mind that projected returns from financial planners or advisors are not guaranteed and are subject to market pressures and volatility (past results are no guarantee of future performance…).
The same FPSC Guidelines suggest an assumed projected gross return of just 6%, before fees and taxes, for even the most aggressive investor. When even nominal fees and taxes are considered, that return hardly seems worth the increased risk!
In the end, no matter the interest rate environment, structured settlements continue to offer higher guaranteed rates of return than the FPSC guidelines, because they carry no fees, are tax free, and do not affect income-tested Government Benefits.
For more information, please contact us.