Posted on 07/21/2013 4:05:23 PM PDT by GrandJediMasterYoda
I had a friend who was a principal at a lower income school. One of the students "won" a settlement of around $100K in a car accident. And they we not crippled/disabled. The student said: "I'm never working again!"
So my friend calmly took her aside and told her OK, this seems like a lot of money, and it is. But let's talk.
You graduate next year. and will move out of your parent's house. You'll have to pay rent, utilities, insurance, etc.
And she ran the numbers for the student. She could live an "average" existence for about 10 years. IF she didn't blow it all on cars and jewelry and "fun".
The student had no concept of how fast $100K can get spent.
I don't really blame her.
But honestly, even at 17, I'd buy a reliable car, and keep working.
It’s common in the British press. What really got me was that the couple “fell pregnant,” not just her.
At 16? No annuity. Buy a car and home. Have some fun. Heck she could have blown $1M and still have $2M to invest. Given her long time horizon she could have diversified the money across the board with heavy weighting in domestic and international stocks and she would have done well. Get a low stress job, retire at 50. What a waste.
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