Stick to Your Wealth Preservation Goals
Stacey Tisdale, author of The True Cost of Happiness: The Real Story Behind Managing Your Money (John Wiley & Sons; $24.95), says, â€śIn challenging times, the first thing you want to do is throw your goals out the window. Depending on your financial settlement, create a realistic financial plan and continue to build wealth.â€ť
â€śIâ€™m just starting a $2.5 million universal policy,â€ť says Mouton, who sees insurance as a major staple in her plan. â€śMy rainy day fund is pretty huge because I need to save six months to a year, so I need pretty close to $200,000 saved,â€ť says Mouton, referring to her emergency fund.
Establish a Trustee over Your Childâ€™s Inheritance
Mouton is a firm believer in real estate and looks forward to leaving wealth to her children. In order to ensure that the wealth doesnâ€™t cycle back to her ex-husband, she needs to put certain protections in place.
â€śThereâ€™s nothing you can do about the legal custody of your children if itâ€™s granted to their father, but you can do something about your money,â€ť explains Douglass. To protect against this, divorced women should leave their wealth in trust to their children and select a trustee to administer the wealth.