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Being at the top of your professional game and seeing your kids establish themselves as adults can be a great feeling. As an empty nester, your children are probably becoming less and less financially dependent on you, and retirement may be just around the corner. Here is a quick guide that you can use to help ensure you have enough money to retire when the time comes.
Adjust your strategy
As retirement is quickly approaching, you want to be sure that your money is safe and secure to use in the near future. More aggressive strategies are okay when you are younger, because if your finances take a blow, you have plenty of time to recover. But, if you keep employing these risky strategies when you are older and have less time to recover from a loss, you can put your hard-earned retirement savings at risk. As you grow older, switch to safer investment strategies so that you don’t lose out when you need the money the most.
Talk to a professional
No one can predict the future and no one will be able to give you an exact figure of how much money you should have before you retire. But sitting down with a financial planner can help you with your saving strategies. You may find that you are well on your way to a comfortable retirement. Or you may find that a financial planner can sharpen your saving skills so that you can move on to the next stage in life without breaking a sweat. Regardless, it is a good idea to know where you stand and whether you are on the right track. Though it may cost you money upfront, the return on your investment can be invaluable.
Keep your spending in check
As an empty nester whose kids are inching closer to cutting the financial umbilical cord, you may find that you are able to keep more of your income. This is a great milestone, but rather than spending all of your money on a luxury car or a lavish vacation, consider what contributing the money to your retirement savings can do. That is not to say that you shouldn’t enjoy the money you make, but remember that the more money you sock away, and the sooner you do so, the more it can grow and the more you’ll have to enjoy when you retire. Make your purchases wisely and keep your eyes on the prize of a comfortable retirement.
Published on May 21, 2007