So, you have sent the kids off on their own and now find yourself an empty nester. This new life stage brings quieter vibes in the house and less multitasking to manage. But beyond the physical changes, you also have new financial factors to address in order to support efficient, long-term wealth management. If you’re an empty nester experiencing this life change, here are some financial reminders to keep in mind.
1. Revisit your life insurance
When your children lived with you, you probably listed them as dependents, which can increase your premiums. But, if your children are no longer dependent on you financially, then you may want to consider streamlining your coverage. By addressing your real costs today, you can lessen the amount you pay into insurance and help minimize your monthly payments. And any money saved now is income you can use for your retirement tomorrow.1
2. Consider downsizing your home
If you upgraded your home over the years to make space for kids, you may be able to downsize now that they’re no longer living with you. By doing so, you could bring down the mortgage you pay each month. The smaller space can also help you with your heating and cooling bills, since you have fewer rooms to manage.2
3. Focus on paying off debt
With less financial responsibilities, you can now prioritize your money in other ways. One option is paying off debt—which can be an especially important choice for Boomers. Today, the Boomer Generation is loaded with debt, so much so that 23% of those that are postponing retirement cite debt as a reason for their delay.3 By using more of your money to pay off credit-card debt and other liabilities, you can free up assets to save for your retirement.
4. Look into claiming the college tax credit
If you sent your kids to college, you may be able to help your finances by claiming the American Opportunity Tax Credit. While complex to navigate, families can be eligible to receive it during the first 4 years each child is in college and if they meet other requirements. If you do qualify, you can save up to $2,500 per student on your taxes.4
Overall, your unique financial goals and life needs will drive the best strategies to pursue as an empty nester. If you would like to discuss ways to more efficiently manage your finances, we’re happy to help.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by (company name). They do not refer in any way securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.