You are working in a Walmart, and then unexpectedly, you get injured. You sue them and get a settlement. What next?
Here are tips on making the most of your Walmart injury settlement funds.
Avoid Risky Investments
With this new settlement money, you might think about investing it to grow your money faster. However, “get rich quick” investing ideas like crypto, penny stocks, options trading, and more are really just forms of gambling that you usually lose money on. One wrong risky bet can mean losing most or all of your settlement funds.
Instead, talk to a qualified financial advisor about safer, smarter ways to invest your settlement for growth over many years.
Low-fee index funds and exchange-traded funds can allow you to invest small amounts into many different stocks and bonds, lowering your risk. Certificates of deposit and money market accounts at your bank can also earn you interest that is better than what a regular savings account does.
While they cost money, hiring financial advisors is worth it because their investing know-how will help grow settlement funds wisely in the long run. They can make a custom investment plan that accounts for your risk, comfort level, and financial goals.
Often, financial advisors save you more money through prudent long-term investing guidance than their fees and even costs.
Set Specific Financial Goals
Getting extra unexpected money from an out-of-court legal settlement gives you a chance to really improve your finances over the long term.
To succeed, use your leftover settlement money towards specific financial life goals.
These goals could include:
- Saving for retirement – Injury settlement money isn’t taxed, so saving it for retirement helps make sure you’re financially secure later in life.
- Funding a college savings account for you or your children – Higher education often costs tens of thousands of dollars, even at public state colleges.
- Paying off your mortgage – Eliminating this huge monthly bill that takes decades to pay off helps your finances so much.
- Starting your own business – Use settlement funds to start up a business you have a good idea for.
- Making home improvements – Updating your house pays off hugely when you eventually sell it.
Talk to financial pros like advisors and settlement-experienced lawyers about your money priorities. They can give you tailored tips and ideas for your specific situation.
Having clear goals for separate savings accounts makes it a lot easier.
Consider Annuities for Steady Payments
Structured settlements provide reliable ongoing income for injury victims – through annuities that pay settlement monies out gradually per an agreed schedule, often monthly or yearly, rather than a single lump sum.
With a structured settlement, an independent third party handles making the periodic payments to you per the set schedule.
Structured settlements have unique legal protections requiring the payment schedule to be followed. If the paying company has money troubles, state guarantees will ensure you still receive what you are owed.
Getting predictable recurring payments reduces risks you’d otherwise take when investing a large lump sum all at once. However, structured settlements also can’t be changed once set, locking you into fixed payments on a timeline. And so sometimes, lump sum payouts allow more flexibility if your life circumstances or financial needs change.
Talk to financial and legal experts to decide if getting settlement money through a structured settlement makes sense for you or not.
Recognize Setback Dangers
Life mishaps happen.
So realize that even this settlement money could end up having to be used for normal living costs if catastrophes like major illnesses, permanent injuries stopping you from working, job loss, or other disasters occur. Things like that could eat up all your settlement savings quickly.
To prepare for the unexpected:
- Maintain strong emergency savings – Adequate savings means not having to tap into settlement funds to cover daily costs
- Get protection insurance – Long-term disability insurance and life insurance offer vital financial backups.
- Keep debt low – Less debt means lower regular living costs if income disruptions occur.
No one wants to think about worst-case scenarios. However, being realistic about the possibility of major financial setbacks will help you manage settlement funds more carefully and deliberately.
Extra Court Oversight Can Protect Settlements for Minors or Disabled
If you receive a settlement for injuries to a child or disabled person who is unable to legally manage money themselves, extra oversight keeps their funds protected.
Through a special legal process, judges can protect injury settlements received by vulnerable people by:
- Making the person handling the money report account balances and transactions regularly
- Limiting what kinds of investments are allowed with the money
- Stopping any money being transferred or withdrawn without a judge’s approval
- Ordering the settlement to be kept in protected trust accounts or similar
- Appointing professional financial managers if needed
While complicated, court-ordered protections aim to prevent settlement funds from being wasted or stolen from those unable to manage them themselves.
How Can A Lawyer Help Managing Settlements Wisely?
Settling an injury claim with Walmart provides important compensation for the difficulties you’ve been through. However, effectively managing even a large dollar settlement can be hard if you don’t have much financial experience.
A Walmart work injury lawyer who routinely handles injury settlement money can provide invaluable hands-on guidance and advice.
Here’s how they can help.
They Recommend Finest Uses Tailored to You
Every person has different financial priorities and needs. So, your attorney will identify your unique priorities and then give tailored advice about smart ways to use the settlement money based on those priorities to maximize the long-term benefits you receive.
They Connect You With Financial Experts
Most lawyers aren’t also professional investment managers or retirement planners. So ethical attorneys will likely connect you with accountants, financial advisors, structured settlement brokers, and other specialists if complex long-term money management is needed
They Advise Against Settling Too Fast or For Too Little
Many people accept the first low settlement offer. They just want the process to be over, even when they deserve more. Good lawyers keep negotiating persistently until they reach a fair settlement number. This alone can mean tens of thousands more dollars in your pocket.
They Resolve Lien Problems Before Settlements Close
Doctors, health insurance plans, government programs, and others often have claims against settlement money as reimbursement for accident costs they covered.
An experienced lawyer often works to negotiate down and resolve these liens so you keep more of your rightful compensation.
They Stay Involved After Settlement Closes
Reputable lawyers don’t abandon you once the settlement money arrives. They provide continued counseling on properly handling the money per your needs. Ethical lawyers prioritize your best interests when it comes to using the funds – not quick payouts and fast case closures.
Conclusion – You Don’t Have to Go It Alone
Getting fair compensation for your work injury struggles provides a huge opportunity to recover financially after tough times. If handled properly, settlement money can offer lasting security and peace of mind.
Luckily, experienced injury lawyers can help at all stages– first, by getting you maximum reasonable compensation through relentless negotiation. Then, after the settlement money arrives, they continue guiding you on proper management so the money keeps benefiting you.
Getting smart help with your settlement protects you and the financial second chance it offers.
