by Viola Van de Ruyt, VandeRuyt Wealth Management Group –
Divorce can change your retirement plans and your lifestyle expectations. With an aging population, many newly retired couples are facing “grey divorce” which lacks the working years to recover from.
In dealing with many clients over the years who have gone through life transitions such as death and divorce, I have found that logical decisions often do not prevail. Emotions are entwined very closely in financial decisions, and none more strongly than in divorce. These range from anger over the past to fear of the future. It is important that these emotions don’t hold you back.
Here are three steps that will help you build your financial confidence.
Plan. Know what you have and what you need. Take an inventory of all your assets, your debt and all sources of income. List what you spend and look at what is necessary and what is for your lifestyle. Look backward at bank and credit card statements for a few months to determine what you really spend. An important part of this step is to review your beneficiaries on registered plans and insurance, and of course review your will and power of attorney.
Educate yourself. Ask questions, as there are no stupid questions. This does not mean you need to get a business degree, but you will gain confidence if you learn some of the language and terminology of the financial world.
Emotional Checkup. This can be the most difficult task of all without a neutral third party advising you. Emotional mistakes can range from shopping as an escape to investing too passively. Does your lifestyle need to change?
These three steps can be greatly aided by a trusted advisor. While friends and relatives mean well, they’re not necessarily up to date on their facts and more importantly their situation may be quite different from your reality. This is what professionals are there for, so don’t be afraid to ask for help.
For more information visit www.violavanderuyt.ca.
Viola Vanderuyt is an Investment Advisor with National Bank Financial (NBF). National Bank Financial – Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF Inc.), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF Inc. NBF Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), and is a wholly-owned subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA).