Look into Dave Ramsey and his Financial Peace University. He deals a lot with debt, which doesn't sound like an issue for you, but I think you'd find it educational in terms of budgeting, emergency funds, insurance and buying a house.

I do not have a 401k and do not have the option of one at work.

In response to an earlier question-my rent is 3k and my living expenses are another 3-4k and that includes utilities, etc. I will get a better grip on budgeting-but will have a hard time cutting back on the charity, gifts, etc. I volunteer internationally and have always thought that is a huge part if who I am, but am starting to realize that it is indeed a luxury.

When I was married, I lived very comfortably financially. I took many things for granted and am starting to realize (finally) that it's up to me to get it together. My ex was very controlling and degrading, so after finding out he has been having an affair, I decided that enough was enough. I am happier than I've ever been but scared for the future financially.

I would like to buy a house-even if it's far out or smaller than what many consider ideal. I had a 8k sq ft house and realized truly that a house is just a house-it's the people you surround yourself with that make the difference between a house and a home.

Thanks again for the supportive advice and lack of snarky comments.

Start an IRA for yourself. You can put $5500 in now, $5500 January 1st, and I'd reserve 25k in a high yield savings account earmarked for future contributions.

Next, I'd set aside 100k to subsidize living expenses while you max out your 401k or equivalent plan, if you have access to one.

Before you start talking to financial advisers, start looking for recs for a good CPA. You don't need to necessarily have them file your taxes, but I'm assuming you will soon have your first experience filing as Head of Household rather than Married Jointly. This is one of the categories hardest hit by AMT and you need to sort out how best to minimize this. A consultation with a professional will help you decide between Roth or Traditional IRA contributions, whether an FSA or HSA is worthwhile, whether you will qualify for property tax deductions and what level you can drop your charitable contributions to.

Do not buy a larger house until you determine whether you will still be able to deduct property taxes!

After you've taken these steps go to

http://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212

and follow the directions for asking for advice there. You will get better help than 99% of financial advisers out there can give.

If your kids are in private, consider moving a bit further out to pay less for a house. This of course depends where you work and where the kids go to school. But, still, something to consider.

I'm not sure I'd be comfortable with a $400k mortgage on $7k monthly income. Don't forget about taxes. My $410k mortgage at 3.625% with taxes is $2415/mo. As a home owner, you will also have regular housing expenses, like fixing a toilet or replacing roof.

I think you should aim to invest all of the $300k for retirement (it sounds like you are behind in retirement as a former SAHM) and use the $100k as a down payment and emergency fund (which you will need to slowly increase).

Thanks-

I have 100k for down payment plus the 300k for investing. Income/CS is pretty regular although my ex often likes to be difficult and pay a month late, so it mkes sense to have a good amount of the money available.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you will need a larger house I would use the 300k as a downpayment on a 600k house.

Worst suggestion possible. "Hey lock up all your money in a totally illiquid asset that will cost you at least $50,000 to get out of". How the fuck people who think like this aren't homeless is beyond me.

You can always down size later and she has a solid income. 4 kids in a 600k house is already going to be tight , any smaller and it works be debilitating

I don't see the income as guaranteed at all - what if the husband misses payments or loses his job or contests the amount later an wins? What if she loses her job? Etc. Kids are resilient - they can bunk if they have to. Different POV I guess.

Anonymous wrote:

Anonymous wrote:you will need a larger house I would use the 300k as a downpayment on a 600k house.

Worst suggestion possible. "Hey lock up all your money in a totally illiquid asset that will cost you at least $50,000 to get out of". How the fuck people who think like this aren't homeless is beyond me.

You can always down size later and she has a solid income. 4 kids in a 600k house is already going to be tight , any smaller and it works be debilitating

Anonymous wrote:you will need a larger house I would use the 300k as a downpayment on a 600k house.

Worst suggestion possible. "Hey lock up all your money in a totally illiquid asset that will cost you at least $50,000 to get out of". How the fuck people who think like this aren't homeless is beyond me.

Anonymous wrote:you will need a larger house I would use the 300k as a downpayment on a 600k house.

Oh god, don't. That is not a good idea.

you will need a larger house I would use the 300k as a downpayment on a 600k house.

I would buy a house

If you decide to buy, I would stick to a price range of about 500k for the property. At current rates, this means a mortgage payment of 2k, assuming you put down 100k.

Out of 300k, I would keep about 50-75k in highly liquid form (savings account, CDs) as an emergency fund. The rest I would put into retirement/invest in index (equity and bond) funds.

First you need to cut back the monthly expenses, charitable giving is off the table, give your time on the weekends rather than $$$.

Make sure you are meeting with a CFP (certified financial planner) not just a FA at your bank, they will do a financial plan for you this should cost somewhere in the 800-1,200 range depending on how detailed it is. Once you have your financial plan you will have a better understanding of what you can spend on a home, what you should invest, what you should have in cash on hand etc. good luck!

OP - a couple of questions. Is the $100k you saved for the house on top of the $300K settlement?

Also, does your $3K in other monthly expenses cover household basics and gas, car, etc?

I am recently divorced with a settlement of 300k that I would like to invest. I currently have no other investment/retirement accounts. I am mid 30's with 4 kids. I was the typical SAHM who wasn't involved with the financials during my marriage. Any advice? I do plan on talking to a FA but would like to have some insight before I speak with him. Kids are all in private and my ex will pay college tuition.

Between work and CS, I have 7k coming in monthly. I am currently renting at 3k a month but would like to buy. Other monthly expenses total 3k (including charity donations).I have 100k saved for a down payment. Any recommendations for how much house I can afford? Or even if it makes sense to buy right now?

No snarky comments please, I am overwhelmed with trying to process the divorce...TIA and any help/advice/insight is much appreciated.