Financial planning for empty nesters

Here are our tips

Written by Nitin Manohar
October 19, 2017

When you have a family, much of your time is spent raising kids, planning for their future and teaching them how to thrive as successful individuals. It takes years, but can feel like it’s over in the blink of an eye – suddenly, instead of a young family, you have an empty nest. So what now?

If your adult children have moved out and started careers and/or families of their own, it’s a time to celebrate – not because you wanted them out of the house, necessarily, but because you’ve successfully raised functioning humans – an accomplishment for any parent! For many of us, this time may signal a lifestyle change: putting yourself first again after years of focusing on others. Now is the time to assess your wants, needs and financial situation, and make a plan that will allow you to achieve your vision for the future. Here are some financial tips for empty nesters – please contact our team if you’d like to learn more!

Identify your needs and goals

Your needs and goals will change over time, and it’s important to keep your wealth advisor informed so that the appropriate recommendations are made. When a life change happens, such as no longer financially supporting your children, make the most of it – that extra money can go towards savings, investments, a vacation property or even travel – we can talk about what makes sense and how to do it.

Assess your finances

Do you have any outstanding debt, either personal or relating to a business? If so, eliminating this burden should be a high priority. Furthermore, it’s important to look at your complete financial picture – investments, savings, insurance, and any future retirement income (pensions, government). Do you pay or receive support payments from a former spouse? What is the value of your home, and do you plan on keeping it long-term of downsizing? Having a clear understanding of your financial situation from top to bottom is beneficial to you and your wealth advisor, and will help you reach your goals.

Create a career exit plan

You may know that you want to retire eventually – but when, and how? Will you stop working all at once or transition slowly from full-time employment or business ownership to something less demanding? Will you work part-time in retirement, take up a new career in your senior years, or never work another day in your life? It’s important to consider the financial and emotional implications of these decisions. We can help.

Get ready for retirement

Once you’ve decided when to retire, make sure your finances support your vision. We can look at retirement income options from investments and other sources, helping you achieve your preferred lifestyle after your working years have ended. While you’re at it, now is the perfect time to consider legacy planning – and, make sure your Will and Power of Attorney are both valid and up-to-date!

For more information on wealth management services by Saikali Portfolio Management and the Scotia Wealth Management team of specialists, please contact us at your convenience.