Once your youngest child has graduated from college, you might find that your monthly financial expenditures have started to go down a bit (or a lot). As your son or daughter begins to make their way in life, you suddenly realize how much more money you’ll have to play around with.
Instead of running out and buying a new vehicle or that time-share property you’ve had your eye on, it might be a good idea to seek advice from someone who can help you take the proper steps to ensure your retirement years are financially worry-free.
A good financial planner can not only help you manage this newfound influx of money but prepare you and your spouse for when you can no longer work to provide income.
Supporting Your Children
Even though your children are out of the house, working a steady job, and paying their bills, you might still be tempted to help them out financially.
From helping them pay down their college loans to giving them a few extra dollars to help pay for the down payment of a house, it’s likely that you’ll never completely stop financially support your children. Something always comes up.
Make sure to let your financial advisor know of your intentions to continue to provide ongoing financial support to your children. This will help ensure that it doesn’t get in the way of your financial goals.
Have Some Fun!
You’ve successfully raised a child who is now able to support themselves. Now it’s time to focus on you and your spouse.
Many empty nesters want to splurge a little – whether it’s taking a vacation to Europe, buying a second vacation home, or just performing a few additions to the house, temptation abounds.
Your finance advisor can help you set aside some “fun money” while at the same time keeping you on track to meet your financial goals.
Update the Will
If you haven’t updated it in a while, there’s a good chance that it’s outdated by several decades. Monies that used to go to college tuition can now be saved or dispersed as you see fit.
It’s also an excellent time to think about who will take care of you if you suddenly become incapacitated. Dementia and other age-related conditions can sometimes come on quickly and without warning.
By giving your most trusted child power of attorney over you, they can ensure that you’ll be taken care of in the event you can’t take care of yourself. Check with your advisor on the best way to set up power of attorney and any financial ramifications it might have down the road.
Insurance Over Coverage
Now is also the time to look at your car, life, and health insurance policies. If your child’s employer covers their healthcare and they’re financially able to afford their car insurance, you could save a significant amount of money by dropping them from your policies. You could also cut back on life insurance and save even more cash.
Instead of spending that extra money on fun things, you could put it right back into long-term healthcare insurance. If you or your spouse require long-term care, it could rapidly deplete your life savings account in just a few short years.
You will also save money by buying a plan in your 50’s when you’re in relatively good health vs. when you’re 70 or 80. Talk to your planner to learn more about the various types of long-term insurance coverage that’s available to you.
Whether it’s due to the economy, high housing costs, or inability to find a long-term job they’re happy in, your newfound financial freedom could suddenly come to a crashing halt the minute you hear a knock on your front door and see your son or daughter with their bags in their hands.
It’s unfortunate, but in this day and age, more and more children are returning to live with Mom and Dad after they initially leave the house. A good financial planner can help you be prepared in case a boomerang child comes knocking at the front door one day.
How Are You Financially Preparing for Your Empty Nest?
Sitting down with a financial planner to strategize the next few decades of your life can not only save you money but time and headaches as well. At Glen D. Smith and Associates, we strive to forge strong partnerships with our clients and offer them expert guidance that’s tailored to their financial situation.
Give us a call at (469) 212-8072 or contact us via our website to learn more about how we can help you and your spouse protect and prepare yourselves financially once your children are all out of the house.
Any opinions are those of Glen D. Smith and not necessarily those of RJFS or Raymond James. Securities offered through Raymond James Financial Services, Inc., member FINRA/ SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Glen D. Smith & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services.