“I’m not selling my house right now, so it doesn’t matter what it’s worth today.”
That one sentence changed everything about how I look at my INVESTMENT accounts. And if watching your investments go up and down makes you want to hide under the covers, you need to hear this analogy.
Today we’re talking about investing after divorce by breaking down the three buckets every divorced woman needs to understand, what to do with settlement money sitting in your bank account, and when you actually need a financial advisor versus when you can handle it yourself.
If you’ve ever thought “someone needs to rescue me financially,” this episode is for you.
Resources mentioned in this episode:
- Feel like a hot mess after divorce? This FREE 5-Day Workshop will teach you a mind-shift tool to help you learn a powerful way to manage your thoughts and emotions in order to navigate adult decisions with clarity and peace.
- Flying Higher (https://joinflyinghigher.com) is my live mentorship program for Christian women pursuing increased confidence in their relationships, emotional management, decision making, and self-development. Join us for live classes, coaching, Bible study, and book studies every month. Plus access to a huge library of education and coaching resources. Only $59/month.
- The Renew Your Mind Podcast with Diana Swillinger
- Dave Ramsey Baby Steps
- Money with Katie Show
- Investing for Dummies
Samantha Compton – President & Senior Financial Advisor
It wasn’t until a major life event that Samantha realized a desire to understand and set up her own financial future. That transitional experience helps her remember that financial topics can be intimidating and confusing, especially for those unfamiliar with industry lingo.
Once Samantha became educated and equipped in her own finances, she wanted to serve others by giving insight for their financial futures. She especially enjoys helping women going through divorce and/or the loss of a spouse as well as facilitating financial conversations between couples and helping the non-CFO of the family understand what is in place for their future.
Samantha has helped singles and couples develop their long-term financial plans since 2012, when she began her financial career. In 2016, she transitioned to Wise Wealth as a senior financial advisor, and in 2023, she opened Insight Wealth, an EverSource Wealth Advisors team.
The information discussed in this podcast is provided for informational and educational purposes only and should not be construed as investment, tax, or legal advice. The views expressed are those of Samantha Compton and do not necessarily reflect those of EverSource Wealth Advisors.
Advisory services are offered through EverSource Wealth Advisors, a registered investment adviser. Registration does not imply a certain level of skill or training.
Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Listeners should consult their own financial, tax, or legal professionals before making any investment decisions.
Article: Investing Basics After Divorce
Is it normal to be totally clueless about investing after divorce?
Absolutely!
Listen, when I got divorced, I wasn’t exactly out here making spreadsheets and talking about “mutual fund diversification.” The idea of investing felt like one of those grown-up things only men in suits do.
Not knowing what to do with your money after divorce isn’t a moral failing. It’s just a skill set you haven’t learned yet. Just like I once didn’t know what a “QDRO” was (not a Star Trek character, surprisingly), or how to tell if a mechanic was conning me because my car was making that “expensive” sound.
You’re not stupid. You’re just new at this. There’s a difference.
Why Does Investing Feel Like Learning a New Language?
Because, butterfly, it is a new language.
It’s a language most of us were never taught. While we were being indoctrinated with the Proverbs 31 checklist and learning how to bake casseroles for church potlucks, nobody pulled us aside and said, “Hey, let’s chat about compound interest and Roth IRAs.”
So of course you’re overwhelmed when someone throws out words like “non-qualified distributions” or “market volatility.” It sounds like financial Klingon. But here’s the good news: you don’t have to become fluent overnight. You just need a translator and a starting point.
Where Do I Start Learning About Investing?
Let’s talk about “Three Buckets.”
- Short-Term Savings – Think: emergency fund, money you can grab quickly without jumping through flaming hoops.
- Income – Your paycheck, spousal support, side hustle cash. Whatever keeps the fridge full and the lights on.
- Future Investments – Your “old lady money.” This is for retirement, disability, or when you just don’t want to work anymore (or literally can’t).
Samantha Compton, our guest financial guru, breaks it down so even kindergarten-me could understand. You start by organizing everything you have into one of these buckets. Because until you know where your money is, you can’t decide where it should go.
But What If I’m Broke and Panicking About the Future?
Deep breath. Step away from the panic.
Samantha didn’t start investing until she was 42. She had no retirement savings, didn’t even know what a mutual fund was, and yet, here she is now: financially empowered and helping other women do the same.
You don’t need a six-figure salary or a perfect financial history to begin. What you do need is the willingness to take baby steps. And when I say baby, I mean itty-bitty baby steps. Think: 1% of your paycheck going into a Roth 401k. That’s it. Then, in six months, bump it up to 2%.
Your job isn’t to build Rome in a day. It’s to start laying one brick. And you know what’s wild? Over time, those bricks stack up to something real.
What If I Have a Chunk of Money and No Clue What to Do With It?
First of all, go you! Whether you got a settlement or sold your ex’s fishing boat on Facebook Marketplace, having a chunk of change can be a blessing and a burden.
Here’s what not to do: leave it in a 0.0000001% interest savings account at your local bank where it earns two cents a year and gives you nothing but a false sense of security.
What to do? At the very least, park it in a high-yield savings account. Google “best high interest savings account,” compare rates (I found one at 4.5%), and let your money do something while you figure out your next move.
Then (and this is important), don’t rush. If you’re still trying to understand your post-divorce income and expenses, give yourself 3–6 months to track your cash flow. Once you’re steady, you can talk to a fiduciary financial advisor (that means someone legally required to act in your best interest, not their yacht’s best interest).
Is It Better to Pay Taxes Now or Later? (And Why Does This Feel Like a Trick Question?)
Okay, here’s the tea: A Roth IRA or Roth 401k makes you pay taxes now, so you can access that money tax-free later. That means when you’re retired and living your best gray-haired life, you’re not handing Uncle Sam half your harvest.
Samantha put it perfectly: “Would you rather pay taxes on the seed or the harvest?” I don’t know about you, but if I spend thirty years growing a financial orchard, I don’t want the government waltzing in with a basket.
There are nuances here, but in general, Roth = pay now, grow tax-free. Traditional = tax break now, but a bill later. Choose wisely, young grasshopper.
Should I Even Bother With a Financial Advisor?
Some of you are in a place where a financial advisor makes sense, especially if you’ve got $500k+ in assets (think: 401ks, IRAs, investments. Not your house or your vintage Pyrex collection). Others of you? You’re in learning mode. That’s cool too.
The point is: be honest about where you are. Don’t avoid hiring help out of fear, but also don’t run to an advisor if you just need to start with a dang budget and some baby steps.
How Do I Handle the Emotional Baggage Around Money?
The truth is, many of us (especially women raised in conservative Christian environments) were never taught to manage money. We were taught to rely on our husbands or to “trust God” (translation: ignore reality and hope for the best).
But Samantha said something I’ve been preaching for many years: “Nobody is going to rescue you. You can figure this out.”
YES. YOU. CAN.
You don’t need a new husband. You need a new mindset. And maybe a budget app. But mostly the mindset.
What’s the One Thing That Really Makes Investing Work?
Samantha said it best: Time and discipline.
That’s it. Not magic. Not timing the market. Not praying over your index fund.
The key is consistency. Keep investing (even if it’s $50/month), don’t panic when the market dips, and give your money the time to grow. Like she said, “It’s not time to sell the house.” That’s her brilliant analogy about not freaking out when your investments drop temporarily. (You’ll want to tattoo that on your brain.)
So…Can I Really Do This?
Yes. A thousand times yes.
You can be a divorced Christian woman with a slightly traumatic past, a slightly anxious brain, and zero financial experience and STILL become a smart, savvy investor.
You can stop waiting for someone to rescue you and start rescuing yourself. One baby step, one budget, one dollar at a time.
Come work with me and hundreds of other divorced Christian women in Flying Higher, and don’t forget to check out Diana’s Renew Your Mind Podcast!
XOXO,
Natalie
