For empty nesters, the past decade has likely been a whirlwind of excitement. The kids are now grown and on their own, but preparing them for this journey was challenging and exhausting. Many parents who have recently became empty nesters have found that their retirement planning goals are now demanding their attention.
Financial planning for empty nesters is one of the most important tasks to focus on at this time. Not only is this the best time to focus on retirement, but empty nesters will find that they are able to save for retirement easier at this point in their lives. As retirement draws nearer, it is now time to ensure that the proper items are in place to make retirement goals a reality. So, be sure to look towards the following items when developing your financial planning goals for the future.
Supercharge your Savings
Being an empty nester is very beneficial when it comes to financial planning. These are the people who are most likely at the peak of their career and that are able to save the most for retirement. Plus, they are now saving a great deal of money that they were spending on their children when they were in the home.
The best thing to do when you are an empty nester is to increase the amount of money that you are saving for retirement significantly. The money that you are now saving from your kids leaving home should also be saved for retirement. Now is a great time to do this because you are not used to having the additional funds and will have very little trouble saving them for the future.
Make a Plan
As you draw nearer to retirement, it is also best to make sure that you have a plan in place when it comes to the final years of your career. Set up time with a trusted professional advisor to help with this process. During this process, you will go over your retirement goals and discover exactly what you need to save in order to make them a reality.
It is usually suggested that a person visit with an advisor about 15 years before they plan to retire in order to develop a plan. This is the best time because it will give an ample amount of time to fix any potential problems that are currently in place. This will also help to cut down on any surprises that may surface as retirement grows nearer.
While it is always best to live a debt free life, empty nesters should put more focus on this than other age groups. Debt is one thing that can cut down on the amount of potential savings that a person can have. Getting out of debt early is the best way to maximize your retirement savings potential.
Start by taking a look at your spending and discovering ways that you can cut down your costs. You should also consider downsizing and selling some of your unnecessary items. This is also something that can help you to ensure that you have the necessary funds available to prepare for retirement properly.
While it is tempting, it is also best to avoid doing much in the way of financially assisting your adult children. Parents are constantly looking for ways to help their children, but this could actually backfire in the future. It is possible for parents to become financially dependent on their children in the future if they are not able to save for retirement properly.
These are some of the best ways that you can begin your road towards retirement after you become an empty nester. To discover even more ways to make this journey a bit simpler, be sure to schedule a chat with us.