Managing Your Investments Hi Jeff, I went through a messy divorce two years ago and am still trying to complete my recovery. My ex was granted half of my 401K. Now I am in my early 50’s and feel I am going to have to work for ever! I also ended up with a considerable amount of debt. I feel that I need to pay off that credit card debt before I look at investment options or even increase my contributions to my retirement plan. I am frustrated and just don’t even know where to begin! What do you advise? Bill- Tavares Hi Bill, I am sorry about your divorce. It changes your life but you can make it through it. Consider theses steps. Minimize your 401 K contribution to free up more money to tackle the debt. Since your debt is made up of charge cards, take the smallest one and pay it off first by lowering the payments on the others to the minimum and putting the difference on the smallest card. You will be able to pay it off sooner. When you have it paid off it will do two things for you: give you a sense of accomplishment and more money to attack the next smallest card. Repeat the process on the next card and keep going until they are all gone. As you continue this process it will free up more money to pay off the larger debts. PS, don’t put anymore debt on the cards. When the debt is gone put as much as you can in your retirement plan. Try to maximize your employers match. Their match is like getting an investment return. I would advise you to work with an advisor who is knowledgeable and can provide investment strategies for your personal situation. This will enable you to work towards a comfortable retirement and balance your investment risk to your comfort level. Jeff Stephan
If you have questions regarding your financial policies, please send them to Jeffrey.stephan@lpl.com Investing is subject to risk which may involve loss of principal.The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult a financial advisor prior to investing.
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