After receiving an $8 million settlement following her husband’s deadly office accident in 2008, Mikeal, a 53-year-old widow from Charleston, West Virginia, entrusted the cash to a detailed pal who labored at a financial institution.
Two years in the past, she found it was gone.
“He stole all the cash … There was nothing,” Mikeal stated throughout The Ramsey Present.
The betrayal left Mikeal in a precarious spot. She now lives in a camper on her mom’s property and nonetheless owes $12,000 on it. She additionally has some bank card debt and depends on employees’ compensation advantages from her late husband’s employer.
Unemployed with ongoing bills, her scenario is difficult.
Mikael stated she reported the theft and has attorneys engaged on it, but it surely seems the cash is gone. She could solely get well about a few hundred thousand {dollars}. She added that the alleged thief is now in Florida and has performed the identical factor to different widows.
Just lately, Mikeal acquired a $531,000 malpractice settlement. She stated she’s decided to develop that cash rapidly to safe her future.
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Ramsey Present co-hosts George Kamel and Ken Coleman provided a structured plan to assist Mikael regain monetary stability. They prompt she may promote the camper, use the income to repay her bank card and by no means have debt once more. She may additionally construct up an emergency fund with among the settlement cash and make investments the remainder. Right here’s a breakdown of the
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Promote the camper. Promoting it may remove the $12,000 debt and doubtlessly discover extra reasonably priced housing choices.
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Repay bank card debt. Clearing her balances would ease monetary stress and enhance her credit score rating.
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Set up an emergency fund. Setting apart a portion of the settlement would give her a cushion for surprising bills.
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Make investments correctly. Placing the remaining funds into diversified, low-risk portfolios may present regular development. Monetary specialists advocate choices like ETFs — SPDR S&P 500 (SPY), Vanguard S&P 500 (VOO) and Vanguard Whole World Inventory (VT) — to get broad market publicity and construct long-term wealth.
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Search employment. Re-entering the workforce, even part-time, would usher in further revenue and add construction to her day.