Money Questions

Switching financial concerns

Another great situation I stumbled one when chatting with a great minded woman was this. She asked a great question:

My husband and I are excited to say that our youngest daughter just got married and has left the nest. My husband and I are now wondering what to do with empty nest syndrome we are embarking on. We are getting ready for my husband’s retirement in the next month. Some of our friends have children that have moved back in with them after failed marriages and the like. We honestly do not want this to be us, so we are selling our home – we do not need the space anymore and we want to travel now. Any advice for us?

Wow, you are ready to go I said to her. But before I get to the recommendation here - honestly, at different times in your life, you will be concerned with different financial matters. While it is true that different people can face these phases earlier or later than others may, the cycle of issues proceeds in a fairly predictable pattern over your lifetime. Here is a look at the typical cycles and where you would want to find yourself financially speaking first:

When you are in your 20s and 30s

-         Establish solid financial habits, since the money habits you develop now will set the financial tone for the rest of your life. Set up a record keeping system, monitor your cash flow and create a workable budget.

-         Start a regular savings program, aiming to save at least 5-10% (10% is not always easy but try before you have children for awhile – you can always adjust it) of your gross income, Build a contingency fund.

-         Invest for the long term

-         Most young adults are eager at this age to purchase their first home. Before you do, be certain that you can afford the mortgage payments without cramping your style.

-         Start saving now for your children’s college education.

-         Get ready to prepare a will or trust. Be certain that you name guardians for your children who are minors.

When you are in your 40s and 50s

-         Your children are probably now in college and may need your help to finance their education and board still.

-         AT the same time, your parents may also need your help with financial matters and or health issues.

-         Make sure you start seriously saving for your retirement at this age. Evaluate your investments.

When you are on your 60s, 70s and beyond

-         Before you retire, be sure that you review your finances carefully to be sure you are financially secure enough to retire.

-         Review your estate plan. Consider the use of a living will, a health care proxy, a durable power of attorney, and a living trust.

-         Reevaluate your gift giving plans for your family and charities.

If you are following this strategy, your parents did, and your children will – you may not find yourself fleeing the nest so soon. Yes, everyone has a different desire for their twilight years, some travel some sit on the front porch smelling the rain. Whatever your goals are, if you stay with the strategies recommended by most all financial planners –you will able to do whatever it is your goals are if you work hard to achieve them. Proper planning for all of your family’s generations will not make you wonder if your children will move back in with you once they leave initially right? Teach your children by example.

(599)

Back to News Updates