Tips on being Ready for Anything, Even Divorce

As the saying goes, the best way to prevent a problem is to be prepared for it in the first place. Fortunately, no matter what issue you’re facing, someone has been there before, and has documented the pitfalls and secrets so that you don’t have to learn by experience.

This post today will be talking about an area that often is neglected until it is too late: Planning for post-divorce finances while still being married.

That might sound pessimistic, selfish, and even fatalistic, but the truth is that while married, any reasonable effort you expend on your own personal finances will benefit the marriage as well, so it’s a win-win.

One of the most important things to remember for any sort of future planning is the 4% rule. Known by financial experts the world over, the 4% rule states that for a retirement account to maintain itself for its desired length, withdrawals should be no more than 4% per year. As the market fluctuates, and people’s desired retirement age changes, that amount could fluctuate, but it’s a good rule of thumb to apply to any retirement situation.

Naturally, that requires quite a bit of advanced planning. If you plan to retire on $30,000 a year, that means that you should plan to have $750,000 saved up in retirement accounts. If that amount sounds shocking, it’s for a good reason: Retirement is expensive, and you do not want to turn 83 and find out that you are completely broke. There is no age where it’s too young to start saving for retirement, and it is a solid fact that the sooner you start saving, the better. It is always possible to be employed part-time while you are in your retirement years, but employment gets increasingly harder to find the older you get, and you will be simply unable to perform certain demanding tasks any more.

It might seem strange to talk about retirement planning and divorce together, but the reality is that middle-aged and elderly couples are getting divorced at increasing rates, and the absolute last thing you want is to walk out of family court single and virtually penniless in your 50s or 60s. You do not have to be actually facing divorce to plan for a single future.

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