You may think that your divorce has made it impossible to plan for your retirement. Often, after a divorce, people are stuck concentrating on the immediate future for a few years before they realize they can still plan for retirement. Here are a few great ways to start planning for retirement now.
You need to have an emergency fund first. This should allow you to get by for three to six months if you lose a job or go through something else. Unexpected events can cause all kinds of financial issues. Make sure this fund is in place before you start investing for retirement.
If you have estate planning documents put together while you were married, you need to make changes. These documents need updated before you start to invest for retirement. You should also review any potential Power of Attorney privileges your former spouse may have and update these documents, too.
A budget is a great tool to help you establish an amount for retirement savings. You will be able to track where every penny is going and assign every dollar a job. This will show you what your cash reserve is every month and how much you can save.
Whether you are older or younger, you should start saving for retirement as soon as possible. It may be better to pay off your debts first and every situation is different. However, the sooner you start saving for retirement, the more you will have in the bank when that day comes.
If you need an expert on your side, and most people do, a financial advisor can help. They can help with the confusion surrounding spousal support, child support and other new expenses you never used to pay.
Saving for retirement is important and a divorce doesn't make it impossible. Make sure you speak with your attorney about what you should do first and how you should proceed.