Your kids are finally out of the house! You don’t know whether to jump up and down with excitement, or curl up and cry. This is called the empty nest syndrome, and you need to approach the condition – particularly as it affects your financial decision-making – with a mixture of caution and clarity.
What To Do
Do re-evaluate your spending
With the kids gone, you may find yourself spending less money in some areas but spending more in others. Utilities and food costs may decline. But you may incur new costs such as college expenses. Stay alert.
Do assess your retirement savings
Now is the time to assess your retirement savings. Will you have sufficient savings to retire at the age you want to or do you need to focus on setting aside more money? Spend less to save more if necessary.
Do evaluate downsizing your home
Should you downsize? Selling a valuable family home and buying a smaller condominium can enable you to realize a substantial cash windfall while reducing day-to-day expenses. It’s an option worth considering.
What Not To Do
Do not go on a spending spree
By re-evaluating your spending, you may have identified other financial goals you want to achieve. Write your new financial goals on a piece of paper and tape it to the credit card or debit card. That will curb your urge to splurge.
Do not expect Canadian Health Care to cover everything
Our health care system is fine in principle, but it might not meet your needs. When assessing your retirement savings make sure you have enough money for healthcare expenses not covered by Canadian Health Care.
Do not postpone discussions about estate planning
By developing an estate plan, you are making a plan in advance on how you want things you own to be passed on to others after you pass away. It involves organizing your financial records and getting your assets in order.
For advice about how best to equip yourself financially for one of life’s most exciting and stimulating transitions, please contact Michael Fahy, The Michael Fahy Group, 604-691-7207.