Sunday, June 9, 2019

4 Financial Questions Empty Nesters Should Ask before Retirement

One topic of conversation that’s hardly ever brought up is empty nest before retirement. Having our children move out can have an emotional and financial impact. This leaves people with a bunch of questions that can be difficult to answer.

How Do I Feel about having an Empty Nest?

Sending your little one off into the world can leave you feeling conflicted with your emotions. The emotions parents feel when their kids leave can vary. In fact, some may even experience empty nest syndrome, which is a feeling of grief, sadness and loneliness parents feel when their children leave. 

However, most people fear the anticipation rather than what happens in reality. Truth be told, some parents actually feel happier and relieved once their children walk out the door. Regardless of how you feel, it’s important that you assess how your emotions and feelings impact the choices you make. 

For example, feeling sad about the empty nest may make you spending money and time with your children. On the other hand, if you’re excited that your children are gone, you may find yourself overspending on shopping or vacations.

How Do I Take Advantage of Retirement Saving Opportunities?

Some people think that just because their kids are no longer their financial responsibility, they’ll have tons of money saved. While it is true you may find yourself with a few extra dollars in your wallet, you won’t be loaded. In fact, the average amount that people who have become empty nesters have put into their 401k only goes up to 0.7 percent max.

How Do I Save for Retirement While Prioritizing Debt?

Saving for your retirement should always be on the bucket list, however, it’s important that you pay off any outstanding debt as well. In fact, the interest rates you’re currently paying are most likely higher than the rate of return you could receive from your savings. 

You might even want to sell your condo, as there are many condos for sale on the market. So, naturally, you want to pay off any outstanding debt as quickly as possible.

How Do I Become Serious about Planning My Retirement?

It’s completely fine that you enjoy having an empty nest, but it’s crucial that you plan for the future, and this includes your retirement. Using a dependable retirement calculator can help answer any other important questions you may have. 

These questions may include “When is it safe to retire?” “How much will I need to sustain myself?” “Will I be able to afford health care?” Once you are armed with this knowledge, you’ll be good to go!

An empty nest can leave quite the impact on your life. How you choose to go about it is up to you. Just remember to think things through and plan accordingly.

No comments:

Post a Comment

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics