The first consideration when it comes to your investments is generally the realization that suddenly you only have half of your wealth left. When you get such a dramatic reduction of wealth, you may not be able to keep it in the same places. Under all circumstances, you are going to want to keep yourself diversified. If you enter into your divorce with a substantial portfolio, you will want to seek professional investment advice from an estate planner who can guide you as to where to keep the money. More often than not, the pressures of a divorce seriously drain away any substantial wealth and the victim here is your bank account. You are going to need to rethink everything and adapt like you are starting all over again!
MY INCOME AND INVESTING
Your employment status will dictate the best way to go about your investment strategy. It’s hard to get by now a days with an income less than $50K. You may have obligations for alimony or child support to calculate into your budget. At the moment, there are rumors abounding about a looming, global economic slump. Indicators like China selling off investments and the price of oil bottoming out are indicators. The stock market has been off it’s great highs of 2015 ever since 2016 began. There’s a pretty good chance you are going to see it go down even further in the near future. That is always a good time to buy.
Fifty years ago, many stocks would pay dividends, usually quarterly and a person properly invested in stocks could live off the income generated by such dividends. Wall Street has changed over the years and you now have to hunt to find a stock that pays out dividends. Before the global price of oil went into the toilet, we had a burgeoning domestic oil industry threatening to make us energy independent from the Arabian oil barons.
When global oil goes down to $30 a barrel, it makes domestic production unprofitable. Oil barons in Saudi Arabia and other far flung places know this so they drop their selling prices and put the Americans out of business. They’ve done this again and again, historically. It makes investing in U.S. oil production a disaster and these are the very same types of industrial investments that paid out great dividends just fifty years ago!
WHAT SECTORS SHOULD I LOOK TO?
How about big pharma? You can hardly turn on the TV without seeing an ad for some prescription medicine or an ad from a lawyer suing them. Is the pharmaceutical sector a good place to put your money? You should do your homework and find the list of pharmaceutical stocks that pay reasonable dividends. Take a look at their track record and make sure they’re not involved in a class-action law suit for any reason. Look at their long-term vitality then purchase a modest amount of that stock. Remember, you want to buy on a day when the market is suppressed! After less than a year, you will see how much better return you get with your money this way as opposed to most other strategies!