Litigation Finance: A Tool to Beat Inflation

When it comes to investing, we are frequently asked about how long it will take to see a return and if that return will beat inflation. Given the state of the economy and the constant threat of inflation, these are questions that every investor should be asking themselves.

As Venita VanCaspel once said, inflation takes from the ignorant and gives to the well informed. Increasing your knowledge of options and remaining aware of what’s going on in the markets are great ways to protect yourself from seeing your investments depreciate from the effect of inflation.

Global inflation rates have put pressure on long-term investments in the last few periods, and short-term investing has always presented a higher risk.

Here are some of the latest figures (figures from worldpopulationreview.com)

• Australia – 1.8%
• Canada – 0.9%
• China – 4.3%
• Germany – 1.4%
• Italy – 0.1%
• Portugal – 0.0%
• Singapore – 0.0%
• South Africa – 4.1%
• Spain – 0.0%
• United Kingdom – 1.5%
• United States – 1.5%

There are several ways to beat inflation; traditionally, investors have looked to bonds or stocks. Bonds are a popular option to increase your savings rate, but they are a low-return investment. Stocks offer a higher-return investment, but they are tied to the stock market’s overall performance. If the market performs poorly, you’re likely to see lower returns.

To bolster your portfolio, you need to look beyond the traditional structures and increase your exposure to other asset classes. Litigation finance offers an opportunity for short-term investing and above-inflation returns and is not linked to market performance.

Litigation finance allows investors to fund a wide variety of legal proceedings. Cases are only considered if the plaintiffs (or defendants) have a 65%-or-higher chance of winning the case, but don’t have the capital to fund the projected proceedings. Investing in a portfolio of cases gives the investor a much higher chance of seeing significantly higher returns than inflation.

In recent years, investing has become a lot more complicated, with new investment options constantly being introduced. While this can be a good thing, in the long run, it can be pretty confusing for investors to make sure that they are making the right choices for their money.

One of the best ways to make sure that you’re making the most out of your investment is to keep track of how long it will take to get your money back. This will give you an idea of how much risk you’re taking with your money and will help you compare different investment options and make sure you’re getting the best return possible. With litigation finance, the return can be anywhere from four to thirty-six months, depending on how you want your portfolio to be structured.

When you need to diversify your portfolio, you need as many tools in your toolbox as possible, and litigation finance is a proven tool to beat inflation.