Thank you! As I said, I've been thrown in the deep end as far as investing, plus I'm in a rather precarious financial position day-to-day.
I am supposed to receive adequate support for six years, but I want to set myself up that I'm not relying on my ex-husband's continued cooperation. If he pays his obligations, we'll be all set and the money I earn from going back to work sooner than anticipated will be gravy, but feel I need to protect myself if he follows through his plans to move abroad. What do I do with the money now not knowing what to expect?
Current holdings:
IRA:
It was just this week rolled over from my ex's 401k and it is currently in cash. As I understand it, there won't be any tax liability for selling the previous fund, right? My only plans for that money is to stick it in a target date retirement fund. --- I also opened and fully funded my own little Roth IRA :)
Brokerage:
When we split that account I sold the $102k my ex had in FBIOX, which I thought was too risky for my current situation. I believe the capital gains on that sale were right at $40k, and I've already earmarked $7k for taxes for next year. At the recommendation of the Fidelity rep who helped me set up the new accounts, that money is currently $65k in FASIX and $37k in cash. I have an additional $25k in BofA.
House: The mortgage on the house was paid off as part of the settlement, reducing my liquid assets while bringing invaluable peace of mind. Seeing what comparable homes in the neighborhood have sold for, it would easily sell for $550K.
Monthly expenses:
I am currently receiving $5500/month in combined alimony and child support, which I explained in a previous thread is not a sure thing long term. Bare minimum expenses are probably just under $3500 (utilities, insurance, food, gas, taxes).
School:
My own school expenses are primarily covered through a community college Worker Retraining grant. I expect my out-of-pocket for the year to be less than $2000. --- If my ex doesn't mess with it, the college savings plans we have for the kids should be enough for my son who graduates next year. I'm only responsible for 22% so I'm (naively) not terribly worried about little sister as I should be working by then
My plans:
I'll be spending this summer and the next school year working towards a paralegal certificate, hoping to find full-time work next summer. The starting salary for paralegals is pretty dismal for the first 3+ years as you really have to start at the bottom of the ladder. With the six-year plan I have ample cushion for that to not be a problem, but I would be struggling if he stops paying child support.
I'm heading out here, but I'm happy to answer any further questions you have. I really appreciate someone with more experience taking a look at the situation!