Divorced Late in Life
Marion found herself divorced at the age of 54. She came to us to help get her financial house in order.
*These fictitious scenarios are designed to generally illustrate how we may provide our services to a client. Keeping in mind that no two clients, situations, or experiences are exactly alike, these scenarios are not to be construed as an endorsement of the Firm by any of its past or current clients, nor any assurance that we may be able to help you achieve the same results.
Overview
Marion Jentzen
- Age 54
- One daughter—married with 7-year-old
- Divorced after 28 years of marriage
Family Finances
- Income: $87,000 from alimony and part-time work
- Investment assets: $525,000 including a 401k to which she is currently contributing
Marion’s Priorities
- Prepare for future reduction in alimony (for life, but based strictly as a percentage of ex-husband’s income)
- Save for retirement
- Use some of her earnings to help other family members
- Make sure she has adequate insurance in all areas and an estate plan which includes her future grandchildren
How We Suggest Helping Marion
- Establish boundaries for spending—distinguishing between basic expenses and discretionary spending
- Explain likely scenarios of what her ex-husband’s income might be in future years, and how that would directly impact her income (alimony payments)
- Set up reasonable goals for her own retirement savings, which will supplement Social Security and the reduced alimony amounts
- Set up a college savings fund for her granddaughter
- Explore appropriate ways she could help other family members and explain how this impacts her own long-term retirement savings and income
- Recommend other advisors, including insurance agent, estate planning attorney, and CPA to make sure that all the proper instruments were in place to meet her goals
*These fictitious scenarios are designed to generally illustrate how we may provide our services to a client. Keeping in mind that no two clients, situations, or experiences are exactly alike, these scenarios are not to be construed as an endorsement of the Firm by any of its past or current clients, nor any assurance that we may be able to help you achieve the same results.
Hypothetical client