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Investment Strategies for the New Single

Chicago Certified Divorce Financial Analyst’s®: Investment Strategies for the Newly Single

Divorce is like stepping into a new place, and you need a map to navigate the unfamiliar terrain. If you’re one of those individuals who find themselves sailing through the complexities of divorce in the later stages of life, you might be wondering how to manage your investments post-divorce.
That’s where a Certified Divorce Financial Analyst® (CDFA®) becomes your compass, guiding you through the financial intricacies of this new chapter.

In this article, we’ll embark on a voyage to explore tailored investment strategies for the newly single, unraveling the mysteries of post-divorce finance.

  1. Assess Your Current Financial Situation
    The first step in any investment strategy is to take stock of where you stand financially. Gather all your financial documents, including bank statements, investment account statements, and your divorce settlement agreement. Take note of your assets, liabilities, income, and expenses. This clear snapshot will serve as your starting point for building your post-divorce financial plan.
  2. Set Clear Financial Goals
    Now that you know where you stand, it’s time to set your financial goals. Ask yourself: What do you want to achieve with your investments? Are you saving for retirement, funding your children’s education, or planning a dream vacation? Having clear, specific goals will help you tailor your investment strategy to meet your needs.
  3. Diversify Your Investment Portfolio
    Diversification is like having a well-balanced diet for your investments. Instead of putting all your eggs in one basket, spread your investments across various asset classes. This can also help manage risk and optimize returns over time.
  4. Emergency Fund: Your Safety Net
    Divorce can be financially turbulent, so it’s crucial to have an emergency fund in place. This fund should cover at least three to six months’ worth of living expenses. Having this safety net will provide you with peace of mind and prevent you from dipping into your investments in times of unexpected expenses.
  5. Explore Tax-Efficient Investments
    Tax-efficient investments can help you keep more of your hard-earned money. Consider investing in tax-advantaged accounts like IRAs and 401(k)s. Additionally, consult with a Certified Divorce Financial Analyst™ to explore strategies like tax-loss harvesting and tax-efficient fund placement to minimize your tax liability.
  6. Stay Informed and Seek Professional Advice
    Investing can be intimidating, especially during significant life changes like divorce. Stay informed by reading financial news and books, and consider attending investment seminars. But most importantly, don’t hesitate to seek professional advice. A Certified Divorce Financial Analyst™ can provide personalized guidance to ensure your investments align with your long-term financial goals and your unique divorce settlement.

Conclusion: Talk to a Certified Divorce Financial Analyst™

Assessing your financial situation, setting clear goals, diversifying your portfolio, maintaining an emergency fund, and exploring tax-efficient investments are key steps. But above all, don’t hesitate to seek the guidance of a Certified Divorce Financial Analyst™. They can provide the expertise and support you need to make informed investment decisions tailored to your unique circumstances.

Work with us

If you have more questions about divorce, our team is here to help you every step of the way. At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to arrive at comprehensive solutions for our clients. Contact us today to know more!

Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Diversification and asset allocation do not ensure a profit or protect against a loss.