With the year coming to an end, many people look forward to taking time off during the holiday season and for their highly anticipated year-end bonuses. Although it may be tempting to use some of the money received as a year-end bonus to splurge on material items such as cars, electronics or even a relaxing trip, it may not be a bad idea to start thinking of retirement. In fact, according to the United States Department of Labor, the average American spends 20 years in retirement. Even more alarming is the fact that only fewer than 50 percent of Americans have calculated how much they need to save for their retirement. Additionally, people going through a divorce are even less likely to think about their retirement or may not adequately protect their retirement assets, which may cause them future financial heartache later on down the road.
Divorcees Struggle Saving for Retirement
Going through a divorce may not only be emotionally taxing, but also can cause a huge dent on a person’s bankroll. It may be difficult to think about saving for a retirement fund when you are trying to settle all of the financial aspects of your divorce while setting up a second household. However, it is crucial that even during such a difficult time that you do not turn your back on your future. It may be tempting to trade off some of your retirement assets in return for keeping certain real estate properties. It is important to note that a well thought out retirement plan can continue to gain interest while real estate runs the risk of depreciation. Thus, you should weigh all of your options. The following tips can help you put some extra money into your retirement fund:
- Outline your retirement needs: Before saving money for your retirement, it is not a bad idea to think about what type of expenses you may incur. For example, common expenses often include future medical expenses and living expenses.
- Learn how to invest your money: This may be a good time to learn about different investment portfolios and how to invest your money. An experienced financial advisor can help you make the right investment choices and help you decide how you want to invest.
- Understand the terms of your divorce settlement: Divorce settlements can be overwhelming but it is important to understand what exactly you received in the divorce. For example, some divorcees may receive a portion of a pension plan and not even know much about it. Thus, it is crucial to work closely with a knowledgeable divorce attorney that you trust.
Contact an Experienced Illinois Divorce Attorney
If you are contemplating initiating a divorce in the DuPage County area, contact one of our DuPage County divorce attorneys at Sullivan Taylor, Gumina & Palmer, P.C. today. Our experienced divorce attorneys can work with you to make sure that you receive a divorce settlement that takes into consideration your financial future.