Curated News
By: NewsRamp Editorial Staff
October 22, 2025
Self-Directed IRAs Can Now Invest in Legal Settlements & Litigation
TLDR
- Next Generation Trust Company enables investors to gain high-return advantages through litigation financing in self-directed IRAs, offering significant profit potential from successful legal cases.
- Litigation financing works by providing non-recourse cash advances to fund legal cases through self-directed IRAs, with returns based on settlement percentages or investment multiples.
- This approach helps plaintiffs access justice funding while providing investors passive income opportunities that can secure better financial futures for retirement planning.
- Investors can now fund legal battles through their retirement accounts, turning courtroom victories into portfolio gains with structured settlement purchases at discounted rates.
Impact - Why it Matters
This development matters because it significantly expands investment options for retirement savers seeking diversification beyond traditional stocks and bonds. With growing concerns about market volatility and low returns in conventional assets, litigation financing and structured settlements offer alternative pathways to potentially higher yields and income streams. For individual investors, this represents an opportunity to participate in legal markets previously accessible primarily to institutional players, while structured settlements provide relatively low-risk income similar to annuities. As retirement planning becomes increasingly challenging amid economic uncertainty, these alternative assets could help bolster retirement security through diversified portfolios that aren't solely dependent on stock market performance.
Summary
Next Generation Trust Company, a leading custodian of self-directed retirement plans, has published an informative article highlighting two innovative alternative investment opportunities within the legal sector that can be incorporated into self-directed IRAs. The company's founder and CEO, Jaime Raskulinecz, emphasizes that while structured settlements represent a well-established investment vehicle, litigation financing emerges as a newer and rapidly growing trend in alternative asset allocation. Through self-directed retirement accounts, investors can participate in litigation funding via non-recourse advances that support plaintiffs or law firms in exchange for a portion of final settlements, creating potential for substantial returns when cases succeed. This passive investment approach carries inherent risk since returns are contingent on successful legal outcomes, but offers the possibility of high rewards typically calculated as a percentage of damages or multiples of initial investments.
The investment landscape for litigation financing spans diverse case types and can be accessed through specialized funding groups, online platforms, or hedge funds that manage portfolios of legal cases. Meanwhile, structured settlements provide a contrasting risk profile, offering steady passive income with minimal exposure. These court-ordered arrangements spread compensation payments over extended periods, similar to annuities, with insurance companies typically handling disbursements. Investors can leverage their self-directed IRAs to purchase plaintiffs' future payment streams at discounted lump sums, subsequently receiving the full scheduled payments that exceed their initial investment amounts. The comprehensive guidance available through Next Generation Trust Company's educational resources helps investors navigate these complex alternative assets effectively.
For those seeking detailed information about incorporating these legal sector investments into retirement portfolios, the full blog provides extensive insights into both litigation finance and structured settlement opportunities. Additional resources about self-directed IRAs and the diverse range of alternative assets these plans accommodate are readily accessible through the company's comprehensive online platform at www.NextGenerationTrust.com, where investors can explore various strategies for diversifying their retirement holdings beyond traditional stocks and bonds.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, Self-Directed IRAs Can Now Invest in Legal Settlements & Litigation
