A legal settlement should bring peace of mind. So why do so many personal injury victims struggle financially after receiving one?

The truth is, receiving a large lump sum can create as many challenges as it solves, especially without a financial plan in place. Here’s why:

1. No Financial Plan.  Most victims don’t get professional advice on how to manage their settlement. Without a budget or investment plan, the money doesn’t las
2. Overspending.  It’s easy to overspend right after receiving a settlement. New cars, home upgrades, or generous gifts can drain funds quickly.
3. Loss of Income.  If the injury prevents the person from working, the settlement often becomes their only income. Without proper planning, that income can run out.
4. Bad Investments.  Victims may try to invest on their own or fall for risky schemes. One bad decision can wipe out years of security.
5. Ongoing Medical Costs.  Long-term care, therapy, and medications add up. Without planning, these necessary expenses can overwhelm a victim’s finances.
6. Loss of Government Benefits.  Lump sums can disqualify someone from Medicaid, SSI, or housing assistance. Without setting up a special needs trust, victims could lose crucial support.
7. Family or Social Pressure.  Friends and family may ask for help. Without clear financial boundaries, the settlement can disappear quickly.
8. Emotional Spending.  Coping with pain, trauma, or depression can lead to impulsive spending or emotional purchases that harm long-term stability.

What Can Help?

A financial planner experienced in personal injury cases can:

• Create a long-term plan for your money
• Help protect your government benefits
• Budget for medical and living expenses
• Invest wisely and avoid scams

Don’t leave your future to chance. A financial plan can turn your settlement into lasting peace of mind.