E equals MC squared is one of the famous equations of mass-energy equivalence. It stands for Energy = Mass times the Speed of Light (C) squared. Simply said, if you take the mass of an object and multiply it by the speed of light (299,792,458 meters per second in a vacuum), you will then have calculated the amount of energy produced.

‘Astro-Physics’ And Nutrition

Does Einstein’s theory of mass-energy equivalence have any significance to the structured settlement secondary market? One company that purchases, or arranges for the purchase of structured settlement payment rights, thinks it does and suggests that E=Cash. Does E=Cash?

Consider this…

• Cash is like a carbohydrate in your diet, a source of energy that you can burn through too quickly, although maybe not "as fast as the speed of light."

• A structured settlement gives you a slower burn rate (and provides tax benefits if you have a physical injury or sickness, or are receiving the structured settlement as compensation for a wrongful death or workers compensation).

Everyone knows the energy-sapping effect of a large meal. This slump is caused by the body working overtime to digest the large meal you have consumed. Therefore, by switching your usual large meals to smaller, more frequent meals, your energy will stay constant and you will be less likely to feel the highs and lows throughout the day as you would from a larger meal.

Experts say that that consuming six small meals regulates your energy level and keeps you energized for longer, feeling better throughout the course of your day.

Likewise, a structured settlement gives you smaller, more frequent guaranteed payments so that your "money pulse" will be constant. You may be financially healthier if you balance cash needs with periodic payments from a structured settlement or other income annuity so that you will: (1) be less likely to feel the volatility of the stock market or bond market; (2) mitigate the possibility that you can completely run out of money through rampant spending; (3) avoid having your need for essential income tied to bad investments; (4) avoid over-estimating how generous you can be; or (5) outliving your income and investments.

Dealing With Lump Sum

An oft-cited statistic is that "90 percent of people have no money left after five years" focuses on stereotypical wasteful dissipation that occurs when some people receive a lump sum payment.

Here’s an example: As many as 57 percent of the people who depend on retirement accounts, and who withdraw the rule-of-thumb-rate of 4 percent a year, run out of money, according to an article titled "Retiring on CDs Not Viable," author by Sheyna Steiner and published in April 2013 on Bankrate.com. Even a 3 percent annual withdrawal rate results in a more than 20 percent failure rate for all asset allocations.

Steiner observes "that it may be a very long time before Americans can feel safe in retirement without purchasing a guaranteed income product." She asks: "Is this going to be the age of annuities?"•