DD got her first annuity check today!

[Blessed]

Better for her to burn through $2,700 in 2 weeks than to have a couple million that she could burn through all at once. That's exactly why we went with the annuity and not the lump sum. Even if the person is irresponsible at a young age, there is still the opportunity for them to see the light and handle the monthly payments better in the future.

Yes that is true. They were strongly urged by the lawyer to do it this way. It protected her from herself and others. Honestly if I had her income at 18 I likely would have blown it all too! I still wish she would go to school or get a job because she is a very bright kid. Since she grew up in a family whom didn't work with lots of gov assistance she thinks this is rich. She will be going into her first apartment in Dec and I think that will help her learn.

I'm glad you DD came out of such a terrible accident and is doing so well.

[disneysteve]

I still wish she would go to school or get a job

I do worry a bit that DD will see this money as a replacement for work, at least early on. She commented when she opened the check that it is more than she earned working at camp this summer. Of course, the flip side is that she won't need to work during college (during school months) and can better focus on academics and extra-curricular stuff.

[bjl584]

I do worry a bit that DD will see this money as a replacement for work, at least early on. She commented when she opened the check that it is more than she earned working at camp this summer. Of course, the flip side is that she won't need to work during college (during school months) and can better focus on academics and extra-curricular stuff.

I worked here and there while I was in under grad college. I would come home one weekend a month and work. It didn't cut into my school work at all. I'd make about $100 or so. It was nice being one of the only people in my social circle that had some money.

I did have the advantage of having a job back at home that was very flexible in allowing me to come work for them one weekend a month and willing to give me the hours that I wanted. Home was also only about an hour and a half from school, so it wasn't that bad of a drive to make once a month.

[LivingAlmostLarge]

Amazing that she came through that accident. Did you have to sue or did they just settle with you?

[HereForTheCheese]

Sounds like she already has the right idea with the Roth...Another good way for her to view the money is by seeing how much it will save her in terms of school debt. Being able to graduate with close to no debt, and a Roth earning tax-free interest would really put her ahead.

[JoeP]

Wow, that must have been a horrible experience for everybody, probably the driver as well.

Some people might have negative opinions of compensation like this after hearing all the radio and TV ads about "injury attorneys" and how they can make you rich just by being a victim of a car accident. But there are real world situations like this that actually deserve financial benefits.

[disneysteve]

Some people might have negative opinions of compensation like this after hearing all the radio and TV ads about "injury attorneys" and how they can make you rich just by being a victim of a car accident. But there are real world situations like this that actually deserve financial benefits.

Very true. Being in the medical field, I see this all the time.

In DD's case, the main reason for the suit was to provide funds for future medical care. At the time, the doctors fully expected that she would require additional surgery down the line, whether cosmetic or functional. We wanted to be sure that the insurance company took care of that. We weren't just looking for a free payday.

[disneysteve]

Did you have to sue or did they just settle with you?

There was legal action and a court hearing (also traumatic for a 6-year old, and for her mother).

[Deteria]

You can never have too much money, unless you are already millionaires. I'd invest that money or save it for the rainy days. Just because you are decent/well off right now doesn't mean it's guaranteed.

[disneysteve]

I think I like this annuity thing. Today is DD's birthday. She used part of her first check to buy herself a present. She bought Apple TV for the house (but said when she leaves for college she's taking it with her).

[cardtrick]

I do worry a bit that DD will see this money as a replacement for work, at least early on. She commented when she opened the check that it is more than she earned working at camp this summer. Of course, the flip side is that she won't need to work during college (during school months) and can better focus on academics and extra-curricular stuff.

Best way to approach college if you can afford it! I missed out on a lot of the extra-curricular stuff because I was working all the time!