$200,000 settlement money

[Well Spent]

She sounds like a scam artist. I would stay away from her if I were you, Boosami, especially if you're a man.

[boosami]

She sounds like a scam artist. I would stay away from her if I were you, Boosami, especially if you're a man.

I know her well, and she's not a scam artist--she's just a victim of a series of bad circumstances throughout her life. Here's the reader's digest version...

She got married very young, before ever holding a job. Her husband was abusive and would barely let her out of the house, let alone allow her to work. After almost a decade they divorced, and since he's a deviant she's left with sole custody (he is a fugitive currently because he refuses to pay child support). Since then she has had to rely on friends/boyfriends because she simply does not comprehend the working world and is having a lot of trouble integrating into it. It doesn't help that she's had too many friends and boyfriends that enable her dependant lifestyle and don't encourage her to get into the workforce.

Some time ago, she was at a big box store and improperly stacked merchandise fell on her. She injured her spine and had to have surgery. She was able to raise money to pay for it from friends and family, which is why there is no debt there. Meanwhile, it has taken the case years to come to a conclusion. Finally, she will be getting a check for damages.

[disneysteve]

she simply does not comprehend the working world

What exactly does that mean? You get a job, show up every day, do the work, collect a paycheck. What's to understand? Is she disabled now? If so, is she collecting disability payments?

[bjl584]

What exactly does that mean? You get a job, show up every day, do the work, collect a paycheck. What's to understand? Is she disabled now? If so, is she collecting disability payments?

Probably more of a matter of her not having the work ethic or motivation to get up and go to work everyday to earn a paycheck. I know a lot of people like that. My friend's mother has claimed to be "disabled" since the mid 80's with back pain. I've seen her work around the house, and I think that my back is worse than hers. She seems fine to me. In the end, it is just an excuse to get ongoing prescriptions for painkillers and lounge around the house all day drinking beer.

[gamecock43]

All I can suggest is that if shes going to spend it, come up with a plan of what she should buy before she gets a check. Maybe prepay her mortgage, pay off her car, pay off her credit cards...that way the money is gone- but her immediate needs are taken care of for a few months.

[Investing First Steps]

I'd like to vote for the annuity as well. Much more of a "behavioral" decision than a "financial" decision, but it's the most likely to make her life better in the long run I think.

[sweeps]

Problem with an annuity is what if she really needs to get to the money for a valid reason. The principal will be locked away for good.

[Investing First Steps]

However, if I'm understanding the problem situation, the risk that she will misjudge something as being "a valid reason" is the crux of the problem.

[KellyJef]

What are the chances of her actually putting a good portion of it into a high interest savings account ............

What bank offers a "high interest savings account"????

I'd be interested in knowing that

[m3racer]

[QUOTE=boosami;204391] Since then she has had to rely on friends/boyfriends because she simply does not comprehend the working world and is having a lot of trouble integrating into it. It doesn't help that she's had too many friends and boyfriends that enable her dependant lifestyle and don't encourage her to get into the workforce.

[Bernz]

If you can direct her to this forum and learn about finances will be worth a try. Otherwise, just make sure you make her payoff her credit card bills asap.