Are you a new ‘empty nester’ or about to become one?
The period of your life when your kids leave home can be one of mixed feelings. Sometimes there’s a sense of loss, but at other times there’s excitement on both sides and a sense of opportunity.
The question here is: what does it all mean for your finances?
Now is a good time to really take stock of where you are, and what might be ahead. Here are a few things you can do for the next stage of your journey.
Think about your real estate needs
If your children have left home – and if you’re pretty sure you’re not going to have any boomerangs – you might be thinking about whether your housing needs have changed.
For some people, a big family home doesn’t make as much sense if there is only one or two people living in it. Maybe you’re planning to spend a lot of time travelling or out and about, and you won’t have as much time to look after your home.
Downsizing in this case can be an option, and it might free up money for other investments or financial goals.
Think about your income needs
When you’re no longer supporting your children financially, you might find that your need for income decreases. This might be a chance to go part-time, or maybe switch to consulting or freelance work to give you more free time to explore your passions.
Think about retirement plans
This is often a period of life where your thoughts turn to retirement planning. You may find that, as empty-nesters, you’re able to devote more of your money to saving and boost your retirement fund.
As financial advisers, we can help you make sure that your current strategies are still good options for you.
Think about insurance
If your domestic obligations have reduced, you may find that your insurance needs change with them. For example, when it’s only one or two of you relying on your income, you may not need quite so much personal cover. Once again, everyone is different: if you’d like to take a closer look at your circumstances, an insurance adviser can help you determine what is an appropriate structure and fit for you.
Talk to your kids about their expectations
Even though they may have left home, lots of young people still lean on their parents in a number of ways. They might have expectations around the level of support you’ll give them with their university fees, or maybe a first-home deposit.
It can be a good idea to ensure that everyone is on the same page early on by having an in-depth conversation about what support you are able and willing to provide, and what your children might need from you.
Like to talk?
If you’re an empty-nester pondering what opportunities might lie ahead for you in the next few years, get in touch. We can offer quality advice on your financial situation and how you can ready yourself to make the most of this next stage of your life. Give us a call today.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
