By Matt Starkey
1. Save and Invest
Traditionally, when your children are grown and leave home, you are released from being their financial “provider.” No more bills for everything from food and clothes to visits to the dentist. Along with this “freedom” may come the immediate temptation to spend your “extra” money on the things you have been waiting for during your child rearing years.
Instead, purge that urge to splurge! Now is the time to put a sizable portion, if not all, of that extra money away in a savings and an investment plan earmarked for your retirement.
2. Add Up Your Savings
Figure out just how much those tuition bills and other parenting expenses have cost you. Your smartest move is to save and invest that much for at least the next several years. If you feel you just can’t resist splurging on yourself before retirement, create a short-term savings goal list to reward yourself at intervals along the way.
The key is to make sure the extra dollars do not land in your general budget where they can disappear all too quickly, eaten up by a meal out here and a “we-deserve-a-little-luxury” purchase there.
3. Check Some Facts, Reduce Your Tax
At this stage of life it is also wise to assess whether you are taking full advantage of every opportunity to reduce your tax bills. The number of dependents you can claim will drop; are there additional deductions you can claim to replace them?
Like all times of transition, give yourself time to adjust. After your children have flown the nest, take the time to evaluate your personal financial situation and make adjustments as needed. For financial planning advice during whatever life phase you’re in, schedule a meeting by clicking below, contact Matt Starkey –mstarkey@makinglifecount.com, or call (913) 345-1881.