With the birth of every new lottery “Mega-Millionaire,” stories warning about the perils of sudden money begin to re-circulate.  Last week’s headline that two more people joined the Mega-Millions fraternity saw a resurgence of such stories.

The moral of the stories all have a familiar ring:  Money doesn’t always buy happiness.  Or, it turns out, stability either!

Last Friday, CNNHealth featured Winning the lottery: Does it guarantee happiness?, an article which highlights the fact that not all sudden money brings the happiness and good fortune people expect.

For 20 years, I have witnessed people facing the prospects of sudden money from a personal injury settlement go through emotions, and challenges, similar to those described in the article.  Although not exactly the same, parallels can definitely be drawn.

Despite their distinct differences, those anticipating injury settlement proceeds may wish to heed some scholarly research about lotto winners that suggests people who choose to have money paid out over time are HAPPIER than those who take it all at once.  An excerpt from the CNN article reads:

” . . . Harvard economist Guido Imbens found that lottery winners who received annual payouts . . . were happier on average . . .”

An infinite number of reasons exist as to why those anticipating personal injury settlements, or lottery winnings for that matter, might opt to take their settlement in cash.  But many times, a properly crafted structured settlement is the best choice for those seeking to put their lives back together following the settlement.  As a needs-based solution to a difficult situation, structured settlements are an ideal choice.  Adding happiness to the mix is a pretty nice bonus.

So be happier!  Take the annuity.  Choose the structured settlement if your situation permits it.