Piggy bank wearing glasses in a classroom

I’m becoming an empty nester

They grow up and they leave. You know the day is coming, but it’s something you put off thinking about. Then one day, you look around at your once bustling household and realize it’s much quieter now. Things are changing. This is a great time to take a good look at where you are financially, make adjustments to account for the changes in your life, and prepare for the next adventure.

 

 

Re-evaluate your plan – You may discover you have more time and fewer expenses than before. Now is a good time to sit down with a financial advisor to reexamine your lifestyle, your goals, and your financial picture.

Accelerate paying off debt – With retirement not far off, it may make sense to pay off debt (especially high interest debt) and then concentrate on saving more for retirement.

Optimize your retirement savings – If you have a 401(k) that’s still with a former employer, now may be the time to roll those funds over into an IRA. You can increase your investment options and possibly reduce fees, while avoiding penalties and ensuring your money continues to grow tax-deferred. Additionally, consider looking for ways to increase your retirement savings. This includes taking advantage of the “catch-up contribution” rule to increase your tax-deferred savings if you are over the age of 50.

Utilize your equity – Over the years, you probably built up equity in your home that you can use to make home improvements with a home equity loan or line of credit. If you don’t feel comfortable taking out more loans, consider downsizing and using leftover money to boost your retirement savings.

Evaluate life insurance – If you have fewer dependents, you may be able to reduce the amount of insurance you need to carry. This is a good time to review all of your insurance policies.

 

Infographic-5 things to consider with an empty nest

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.