A Better Way After Divorce

You can create a sunny financial future after divorce by making a few smart planning decisions (Photo: Freepik)

I’m still so excited about a presentation I gave Monday for the Boca Raton chapter of the National Association of Divorce Professionals (NADP).

The talk was on “The Power of Positive Planning After Divorce,” and it showed how smart financial and investment planning after divorce can totally change financial outcomes and put divorced individuals back on track for a successful financial future.

As a case study, we used an actual client example (with names and circumstances changed, of course, to remain anonymous).

After divorce, this client had only a 5% probability of retiring and remaining financially independent. Our projections showed her money was likely to run out shortly after her 75th birthday, forcing her to choose between moving in with the kids, dramatically reducing her standard of living, or opting for some other undesirable alternative.

We don’t think anyone should have to make tough choices like that.

In our presentation, we wanted to show a better way, and demonstrate that small but smart changes can totally change future outcomes. That’s the kind of upbeat scenario – and the positive impact – we all want to make in a client’s life.

In this case, our projections showed that – by making the changes we recommended – this client would have a very strong likelihood of making her money last throughout her lifetime, and perhaps even build a legacy for her children. All this without reducing her current spending or winning the lottery!

(What kind of recommendations did we make? We added a few more years of work, set up a targeted savings plan using her 401(k) and a Roth IRA, captured her employer’s “free” match, delayed Social Security, and most importantly, overhauled her too-timid investment strategy. It was a tip-to-toe money makeover likely to pay off in spades).

I’ve been in practice for 30 years, and I’m still amazed – and gratified – to see how we can help people turn their financial lives around. So if you’re going through a tough divorce, or any other life turmoil (we’ve all been there!), just know there is a light at the end of the tunnel. Reach out, get help. You may be amazed at what you can achieve in partnership with a skilled professional.

What’s the National Association of Divorce Professionals (NADP)? It’s a national group whose mission is to make a positive impact on the divorce process through a community of high-achieving professionals.  Members unite to develop mutually beneficial relationships and have direct access to valuable information to better serve their clients.

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