After a divorce, there are many “new normals” to adjust to, including a change in your financial status. When a financial settlement comes your way, you will need to know how to manage your funds to pay for your lifestyle in the short term and prepare for the future 10, 20, or 30 years out.
Put Your Settlement to Work
A divorce settlement may feel like a windfall, that you will have plenty of cash for today and well into the future. Most likely, however, the reality of paying for your daily life will continue to whittle away at your assets even if you spend conservatively. That is why it is important to put your settlement to work for you.
Investing your financial settlement is the best way to manage your funds so that it will continue to provide a return for you to live off. The tricky part comes when you need to assemble a portfolio of investments, based on the level risk you are comfortable with—which will be different for everyone, based on income, age, and overall risk tolerance.
Select an Investment Advisor
An essential step in developing your investment strategy is enlisting the help of a trustworthy investment advisor who has experienced the market cycles.
Finding the right advisor to trust with your finances is an important first step. Take your time and do your homework. Research online and read articles. Ask friends, family members, trusted colleagues, or your divorce attorney for recommendations. Develop a check-list of the qualities you are looking for and conduct personal interviews. Since this isn’t a decision to be taken lightly, give yourself the time you need to absorb the information from the interviews and even conduct a second round of interviews, if necessary.
You will know when you find the right advisor whose financial philosophy is in sync with yours. Most importantly, decide. Don’t be so afraid of making a mistake that you unnecessarily delay the process. The faster you select an advisor, the faster you can get your money working for you.
Contact Lake Harriet Law Office
The divorce team at Lake Harriet Law Office provides financial expertise in divorce cases, tailored to your unique situation. If you are considering a divorce, contact us and we will help you get the most fair and equitable financial settlement possible.