Becoming an empty nester is one of life’s most important transitions. And, like all life transitions, it pays to be prepared for it ahead of time. What follows are three key issues (there are others) most ‘empty nesters’ need to address:
Your Family Home
If becoming an ‘empty nester’ coincides with retirement, you may be considering selling your home. It can be a very financially attractive option for city dwellers to take advantage of generally higher real estate prices in urban areas and purchase a new home in a smaller community where home prices are often much lower. This allows you to find a comfortable home and still retain a fair amount of equity as savings.
Having more time on one’s hands is always a welcome luxury and you (and your spouse) should step back and think about what this could mean in terms of spending more time in other activities. These might be:
Living an active lifestyle and cultivating interpersonal relationships, most experts agree, is crucial to the management of aging. Make sure you take some time to consider how you want to spend increasing amounts of free time and enjoy it.
This is a good time for you to step back and think about what the impact of this life change will have on your financial circumstances. Consider the following:
- What will be the impact on the family budget with the children gone?
- What sort of financial support might the children still need?
- What might expanded leisure activities require?
- Should I update my estate/retirement plans?
- What adjustments to my current and retirement portfolios should I make?
- Are there any tax implications of becoming an empty nester?
It’s with this final issue we can be of most help, perhaps linking it to the first. Let us work with you to put a plan together.
For further information and advice, contact Dave Ritcey, The Ritcey Team, 902.678.0048