There was no human resources department.
This was October of 2018.
The state human rights department did its investigation.
Once you finally get your finances in order, you want to keep them that way. Here areseveral moves to make now.
Now, the cases are filed against this man and his company in the court system by my attorney.
Im not sure I want monetary results.
I want him to be held accountable on public record databases.
But that part is key.
Until youve made that decision, discussing investment and tax mitigation strategies is premature.
You didnt ask to be in this awful situation.
And you dont owe anyone anything.
Its not your responsibility to single-handedly hold this man accountable.
But think carefully about your emotional health, as well as your financial needs.
How would you feel if other allegations surfaced and you couldnt speak up?
Or if your former boss went on to abuse someone else?
In no way are you responsible for his actions, of course.
But you have to be comfortable with what youre gaining and giving up.
If possible, take some time to talk through your feelings with a therapist.
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Whether you reach a settlement or win a lawsuit, Uncle Sam taxes the money the same.
Damages related to a physical injury typically arent taxable.
But if the damages stem from emotional distress, the IRS generally considers it taxable as ordinary income.
That applies even if the distress is so severe that it makes you physically sick.
(I should note that Im not an attorney, and theres a considerable gray area here.
Its essential that you consult with an experienced personal injury attorney.)
So suppose you received a $3 million settlement, and you paid one-third of that in attorney fees.
The remaining $2 million would be taxed in ordinaryincome brackets, which cap out at 37%.
Unless you put that money in a tax-advantaged retirement account, you wouldnt need to wait to access it.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
Should you receive a settlement or judgment, proceed with caution.
That can leave you vulnerable to people who dont have your best interests at heart.
Then, invest the rest in an S&P 500 index fund for now.
But before you agree to anything, see to it you fully understand all the terms.
If you feel pressured to settle quickly, its time to find a new lawyer.
Focus on finding the best course of action for your overall well-being.
Money is certainly one component, but its not the only factor.
There isnt a right or wrong answer here.
This is about figuring out whats right for you.
Send your tricky money questions to[email protected].
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
