Investing money post-divorce

How to Invest Your Money Post-Divorce

Divorce can be a financially trying time where one feels that her head is barely above water. There still may be attorney fees to pay along with the cost of buying a new house.  Your alimony and child support may not be what you had anticipated. Or you may have received a bid chunk of cash and not sure of how to invest it.

I bought a house during the end of my divorce and my priority was paying off the mortgage, so I would not have to deal with it when my alimony ran out. Look at different policies to ensure that there is not a penalty for paying it off before the fifteen or thirty year loan expires. An acquaintance who had a bad break-up, has a ten percent penalty if she pays off her mortgage early. She did not read the fine print. I paid extra every month and used most of my divorce settlement for paying off the balance. I like having this security.

Meet with a financial planner who charges by the hour and has no vested interest in certain investments. Working with one who only gets commissions may steer you into a plan that pays a high commission to them. This happened to one women who ended up with a lousy annuity and lost a chunk of its value when she dumped it post-divorce. Word of mouth is one way to find reputable financial planners, but check their web sites and the Better Business Bureau to get a fuller picture.

I looked at financial institutions that did not give their CEOs and top echelon multi-million dollar salaries or bonuses. I checked out who has low fees, paid less to administrators, and has been in business for a while. I found Vanguard ticked all of these boxes. Investments that reach a certain dollar amount do not pay, or barely pay, an administrative fee. My divorced friend is quite happy with Charles Schwab and feels she pays less in fees.
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