A famous study conducted at Stanford University in the 1960s and 70s concluded that 4 year olds who deferred consumption of a marshmallow when promised a greater reward for waiting 15 minutes tended to have better life outcomes than those who opted for immediate gratification.
An ongoing study by Brook Hollow Capital draws a parallel conclusion when it comes to attorneys and deferring their fees: good things come to those who wait. Obviously, the fees you’ve earned (or will earn) in the TVM litigation are worth far more than marshmallows and the waiting period far exceeds 15 minutes. But the principles are the same.
Consumption and investment – finding the right balance
Striking the right balance between investment and consumption is key to setting the stage for future financial success. With the right financial guidance, you can defer your $2 million TVM fee, borrow up to 97%, use a portion for consumption and the balance for investment. This strategy is almost always superior to consuming strictly after-tax dollars when all the economic implications are considered.
Savvy mass tort attorneys prioritize their war chest and consume mindfully today to build a better tomorrow.
Check out our full TVM article to learn more. Click link below.
Also, you should take 2 minutes to view our new "whiteboard" video. It's simple, fun, and finally strikes the right balance between big picture and fine details as it takes you through the Brook Hollow process. Click here to view the video on our homepage www.brook-hollow.com.