Lawsuit ends with settlement - best uses?

[LillFilly]

I might have mentioned that I've been involved in a lawsuit since about 2008. We were to go to court this spring. We had a great chance I was told, and from what I researched, everything seemed to be on our side. But it seems the judge in that state coupled with the government organization overseeing things didn't agree. The judge decided to throw out the first couple of cases for not proving their cases, and has said that any subsequent cases will most likely be thrown out as well. So attempting to go to trial and having the case get thrown out means I will see nothing. But, the company that is being sued has offered-up a sum be be divided amongst the plaintiffs. At least 95% of us have to agree to it; there will be approx. 3,200 of us spilling the sum. What we will get depends a bit on our injuries, out of pocket expenses, time in the hospital, etc. Whatever money we owe to collections or medicare will be taken out as well, along with the lawyer's share. So I would be looking at about $20,000. I guess it's better than nothing; it will pay off my bills, but I am so worried about future medical issues regarding my injuries; I have no clue how they will affect me as I get older. I cannot take hormones and having children could kill me. I don't want to think about what menopause may bring! After the bills are paid, I'm wondering what the best thing to do with the amount left will be. I was thinking of opening a savings or CD so I can be prepared for medical issues down the road. I wonder if it should be in an account I can access or if I should lock it for a few years so I'm not tempted. There are SO many things around the house that need to be done, but I don't want to blow it; There's new gutters, drainage, trimwork, damage from the ice storm, plumbing, etc. I can see that it could go FAST.

So what do you think? Put it away and pretend it's not there? Maybe use some of it for repairs before the problems become issues I have to spend thousands instead of hundreds on? Use it only for medical expenses?

[Akasa]

I'd say maybe $3k for urgent repairs, then lock it away in a CD or some other interest bearing account.

[Aethian]

Do all four, put some into a CD, some into a easy access account incase of emergency, some into repairs, and pay off some bills.

[It's me]

My suggestion: take a hundred or two and use it to pay a fee-based financial advisor to help you decide.

[Seshat]

Use some of it on current medical issues that could become long term issues down the road. (EG, dental.)

Consider whether your best plan may be to move to a country which gives its citizens health care regardless; and becoming a citizen. It's not the best reason to haul ass and move to a different culture; but if you're anticipating long term medical expenses, it's also not a bad one. And going now means that when they hit, you've outlasted the waiting period.

[Gizmo]

I agree with the financial advisor.

However something my mother taught me (as I was to receive a large sum on my 18th) was to take a portion of it and use it. That way you don't feel so 'ripped off' about using the rest sensibly.

In my case it was 10% to have some fun. In your case it could be a few thousand to get a 'nice' house repair done.

[taxguykarl]

Keep in mind that this is likely to be taxable, yes your legal fees for this can be deducted. You're welcome to PM me to discuss this further.

I would recommend saving at least a quarter of your settlement 'til next tax season. I have a niece who is still paying the taxes on her sexual harassment settlement.