Invest when your emotions have settled down

  • Dave Ramsey

    Dave Ramsey


Dear Dave,

I went through a divorce a couple of months ago, and Iím not sure what to do next. I received custody of our kids, ages 13 and 15, plus I have a good job and I got the house in the settlement. Itís a nice, simple home, but itís paid for and worth about $200,000. I receive $1,400 a month in child support, and I got $125,000, which was half our savings. I also have no other debt. Most of my friends are telling me I should begin investing, but they all have different ideas about where I should put the money. Can you give me some guidance?

ó Michelle

Dear Michelle,

Iím so sorry to hear youíre going through this. Divorce is hard enough when itís just a couple, but it must be incredibly difficult with kids involved. Make sure you spend lots of time hugging on them, and telling them how much you love them. God bless you guys.

Ok, I know your friends are just trying to help, but I wouldnít follow their financial advice right now. The trauma from your divorce is still fresh, and you should never make important, long-range decisions when your emotions are messed up. If thereís anything positive in all this, itís that youíre in a really nice place where your finances are concerned. Youíve got a good job, you have no debt, and youíve got six figures sitting in the bank.

My advice is to park that money in a CD until you feel youíre getting over the shock of what has happened. You wonít make much money doing this, but you wonít lose any, either. Then, after some time has passed, I want you to find a good financial adviser ó one with the heart of a teacher ó and look into investing $25,000 in good growth stock mutual funds. Iím talking about ones with at least a ten-year track record of success.

Time and knowledge can help erase fear, Michelle. Plus, youíve got a responsibility to yourself and your kids to invest wisely.

ó Dave

ē Dave Ramsey is CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at www.daveramsey.com and on Twitter at @DaveRamsey

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Published Mar 7, 2020 at 8:00 am (Updated Mar 6, 2020 at 8:57 pm)

Invest when your emotions have settled down

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