I Got $3,100,000 From My Divorce

[Music] brought to you by the every dooll app start budgeting for free today I just went through a divorce or finalized it recently it took a while um and I've been a stay-at-home mom during my entire marriage for um the past 14 years anyway um I got what I consider a pretty good amount of money and I'm just curious I don't really know what to do with it I let my ex-husband handle every single bit of finances I never knew how much money we had anything um so how much are you getting um well there's a couple components to it I got a check for 1.1 million okay um I got a 401k for 715,000 okay and then um $115,000 per month for the next uh seven years okay how old are you I'm 40 okay so you've got a guaranteed income for for the next seven years that's nice okay um okay great so tell me your question okay so my question is I'm completely debt free I also don't own a home because I just got divorced okay um so you need a place to live right I'm renting right now which is $3600 a month which I feel like is really expensive it is um it's also all bills paid so so my question I guess is um I've got like $95,000 in a high yield savings account I started a a Ross Ira I'm like totally I know nothing about Finance so I've just been trying to learn just in the last month or so um anyway my question basically is a can I live like with can I live off of part of this money like off of the monthly income or do I need to get a significant job well the good news is the good news is is you do have a monthly income for the next seven years so you've got some time to reinvent yourself and figure out what you want to do with life and if I were you obviously you don't need $155,000 per month figure out what do I need what's a what's a fair budget for me um maybe it's $7,000 a month and then you take the rest and you're you invest it every single month right so okay that's thing one you've been bought time to figure out a career path for you and I'm going to toss it can in a moment for that but let's talk about the rest of the income that that you have so let's say just for in just to keep it simple let's say you invest half of what you're getting every single month for the next seven years so around 7 and half th000 or 7 and half thousand and then you've got 1.1 million that's a check right yes yes and I didn't know what to do with that so I just put it in a money market account because I didn't even know how to deposit that great I I think that's a good place to start what I want my homework for you is I want you to start learning about investing I want you to start understanding okay I know husband ex-husband used to do it but it's now time for you to start learning because the time is going to come where you're going to need to invest this and you're going to want to understand it you don't want to just hand a check for for $1.1 million over to anybody and say here you handle this you're going to want to say okay I get it and a great place to start is here you know here at Ramsey we do teach that in investing is a better place for you to build long-term wealth than a money market account or a high yield savings account simply because of rate of return right if you invest that money you'll get a higher uh compound interest rate of return on that so it'll grow faster and so I would tell you to get hooked up with a smart Vestor Pro um they're going to have the heart of a teacher and they're going to be able to teach you about this and that's the key thing tell them I don't want to invest anything yet I just want to learn right and they're going to ultimately have you invested in a way that's um uh four different types we're spreading it out it's not going to be high risk it's not going to be just in a set of stocks but I want you to understand that so when the time comes we are investing that check but in the meantime we're getting with a smart Fester Pro to teach us and then as far as the $715,000 401K yeah leave it let it grow you're probably probably going to have to do a direct transfer rollover into an IRA and so the smart festor Pro is going to help you do that and then for you now it's all about career and what you're going to do with your life because you're super young I got a couple quick questions on the money first so the 715,000 how old are you I'm 40 oh my gosh it's going to be so much money so the 715 that that is in the 401K and that then that's your that is going to be a lot of money uh what is that going to be in 30 years okay did you tell me you're 40 now yeah she's 40 okay so let's just say you retire I don't know let's say 65 does that sound good okay okay let's say you add nothing to it that right there is going to be $8 million holy cow just not touching it the reason I went to that Susan is because on this work thing I th this may or may not be a thing now how old are the kids um they're 14 and 11 my other thing is can I buy a house I was going to say that I was working which money do I use I would take the the 1.1 the one one check is is what you need to do plus you already have 95,000 in another savings account so I was going to ask you what is a modest house in a nice area what is a house price you know your area for you and the kiddos what does that look like what's the what's the money on that I mean right now there's like nothing to buy I've been looking um I mean there's a a nice home for 500,000 that okay I it's we need let's just use as an example okay so if I'm you and and then I'm going to pay cash for the house because right now you're paying $3600 a month in rent yeah so you take just little bit less than half of the 1.1 and you've got it paid for a house now that monthly budget which I'm using is the 15,000 you're getting in the settlement now that 3600 was coming out of the 15K it's not anymore right and your utilities and things like are going to be nothing you still got the two k in school so so I would come up with the every dollar budget and and and budget off of the 15 and I would do the the some type of an investment strategy based on what a smart investor Pro tells you because Jade already proved to you you don't have to put another Penny and I'm not saying not to but I'm guessing I'm guessing their investment strategy is going to be you're going to diversify some stuff because right now uh you are more than fine Susan like you're going to be very very wealthy and uh based on just the 401K and what it does over time so for me if I were you I I would take my time you just came out of this divorce you've just settled I'm fine with you renting for a little bit longer you're saying the market right now is not a lot on the market let's see what happens after this presidential election the point is grieve stay cool the 3600 while it's a little expensive it's not even phasing you I would take my time I'd buy a nice house cash MH and you still have over half a million dollars to invest and when you invest it you're probably going to look for something that's non-retirement something that you can get to sooner that's in some sort of a bridge account so that you can access it you know before I agree with that and that that should be the advice that you yeah but for seven years my goodness but here's the deal um you're going to have some margin in that monthly as well that's $180,000 a year for the next seven years yeah you're good so from a standpoint of work uh hang on the line we'll give the the the book find the work you're wired to do in the gate clear assessment but that is a relaxed like what would I do if I didn't have to work which by the way you don't have to you don't have to I was just talking purpose yeah so sorry we're running out of time Susan hang on the line we'll get that to you but thank you for the call you're going to be in good shape create your free every dollar budget today the simplest way to budget for your life