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<b>Basics Revisited:</b> Investing Your Lump Sum Without Taking Your Lumps

By Jim Berliner
October 03, 2005

[Editor's Note: Many of our specialist readers are so involved in financial intricacies that it may be difficult for them to answer questions on investment basics from non-initiates. Jim Berliner's clear explanations should be useful not only in advising professionals who earn a large fee but also for any firm member or client who is faced with a major investment decision.]

In February of 2000, attorney Don Mackey was on top of the world. The seven-figure jury award he had achieved for a client in a wrongful termination case had withstood its final post-trial challenge, and his long awaited payday was imminent. After accounting for taxes, Mackey was expecting to net around $700,000, his reward for the considerable effort expended over years on the case, not to mention the inherent risk involved in taking the case on a contingent fee basis.

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