Whether you view retirement as your own personal time to shine where you can finally start crossing line items off of your bucket list or simply as the next step in the natural progression of life, there’s no denying its importance and the need to prepare for it properly. Likewise, just as any significant period in life entails, retirement is a series of crossroads that, collectively, could very well be the difference between a happy and fulfilling retirement or one filled with worry and angst.
To that point, the often-discussed “empty nest syndrome” is the personification of those important crossroads, where newfound freedom gives you time to start living new experiences like you haven’t had in decades. However, frequently overlooked financial decisions can quickly derail you. Simply put, when the kids move out of the house for good, and you’re left with an empty nest, take it as an opportunity to do a bit of soul-searching and make financially-sound decisions that will pay both literal and figurative dividends well into the future.
Don’t Squander the Opportunity
Depending on your financial situation, it’s likely that an empty nest will leave a few extra dollars in your pocket every month. Even if your mortgage remains intact, the simple fact that fewer people are living in the house should significantly lower your bills, particularly utilities like gas, water, and electricity.
Of course, given your newfound freedom, it only makes sense to start enjoying yourself with some of that excess income in your budget. However, since being a parent is eternally about making sacrifices of all sorts, you’ve likely shortchanged your own retirement in order to help your kids, whether that’s with college tuition, a down payment on their first home, or just everyday expenses.
While starting to enjoy those experiences you long put on the back burner should be a primary focus once you’re left with an empty nest, you should also try to take financial advantage of the situation. Using some of that extra income to repay your savings and investment accounts that might not have felt as much attention as you would have liked with a full house is a financially responsible way to leverage your empty nest. Enjoy your new freedom, but, as always, do it in a way that won’t hurt you down the road.
Are you a new empty-nester? Do you need help with your financial plan? We’re here to help! Simply click here or call (763) 445-2772 to schedule a complimentary consultation today!