It’s normal to be upset when your child moves out. But if your mood stays down for long, it’s time to get help.Having a child is a life-changing event. So is having a child leave the “nest.” The challenge: to work through your feelings and take advantage of your newfound financial resources.
Now that your child has left, your financial plan may be outdated. Time to build a new one.Many of the assumptions underlying your old financial plan may now be obsolete. College tuition payments are over. You have more living space than you need. You have more time on your hands to pursue hobbies and travel—and revisit your financial plan.
Now that you have extra cash, put it to good use. Pay down your debt.You helped to launch your child into the world. How about launching yourself into a debt-free retirement?
Tired of mowing a big lawn, paying big utility bills, and cleaning a big house you no longer need? Then consider the benefits of a smaller home.Do you really need all your living space now that your child or children are living independently? More to the point, will lowering your housing expenses enhance your future retirement security? It’s time to answer that question.
Have a more secure retirement tomorrow or have more toys today. Try to make the right choice.The money you spend today not only creates a larger lifestyle in the future, it also weakens your retirement security. Don’t lose the opportunity to save more for retirement.
Now that you’re closer to retirement, “risk” may be a four-letter word. Learn how to manage it here.You’re older now. So you may have a different attitude toward risk. Time to revisit your risk profile and asset allocation—and to rebalance your investment portfolio.
What will happen if you need long-term care in the future? What are your preferences and how will you pay for care? Answer these questions today.The time to begin thinking about long-term care is not when you need it. Begin to discuss these issues with your family now, especially the financial implications of care.
Your child is out of the house. Do you need the same health insurance coverage?
Consider the possibility of taking your child off your plan. You may save some money.
Is your child still dependent on you financially? If not, then your life insurance needs may be lower—and less expensive.While your children are little, life insurance is a crucial element of financial planning. But now that they are independent, it’s time to reassess.
Without a child at home, your need for auto insurance will be less. But your liability risk may be higher. Revise your coverage today.Take advantage of lower auto insurance costs once your child leaves home. But don’t forget to protect your growing assets against liability claims.
An empty nest frees up cash. But it also may bring higher taxes.Don’t be surprised at tax time. Look into how your tax liability will change now that your child is gone.