Congratulations, you did it. All of your kids are grown and out of the house. Now it’s time to start focusing on the future and some of your more long-term plans. Here are some financial tips for those empty nesters.
Sometimes, kids continue to need financial help once they leave the nest. As a parent, the last thing you want to do is leave your child high and dry, but you can’t sacrifice your future at the expense of now. If you are supporting your child(ren) financially, sit down with them and come up with a plan to help taper them off. Have a clear cut-off date and make sure they know all expectations for the future.
The closer you get to retirement, the more often you should be checking in on your progress. Now that your kids are out of the house, you may have a little bit more disposable income each month. Your goal should be to divert as much as possible to your retirement savings. Take advantage of any matches your employer offers and catch-up contributions.
In this stage of life, having a life insurance policy may not be as vital as it one was now that you no longer have dependents living in the home. Re-evaluate your current insurance plans and consider other options that you may need to look into, such as long-term care.
TIME TO DOWNSIZE?
One thing that may help combat the feelings of a ‘big, empty house’ is moving into a smaller one. While you probably want room for kids and grandkids to come visit, a smaller home may work better with your budget as well as your health. The older you get, the more difficult (and expensive) it can be to take care of a large home.