Financial Planning Tips: Taking Advantage of the Empty Nest Transition in Saving for Retirement

Learn creative retirement savings and financial planning tips for your golden years

retirement-financial-planning-tipsAre you currently going through – or about to go through – the empty nest season of life? While it has been widely studied how this life transition period has a variety of emotional reverberations, did you know it also has many financial effects as well? In fact, learning more about the empty nest period, financial planning tips and how to save for retirement during this time can help you create a more secure foundation for the future.

The first thing to explore regarding financial planning tips and the empty nest period is the emotional side and how this may affect your financials. Parents who are saddened by their child’s departure may spend extra money on children who have left the home. On the opposite side of the spectrum are parents who are excited about their increase in free time; they may spend too much money on vacations, “toys,” another home, etc. Be sure to make a plan with your financial advisor to stay on track with your budget and savings.

Next, also devise a plan with your advisor regarding how to ramp up the savings as you are going through the empty nest season. Studies have found that while savings can increase during this time, households with children ages 23 and older had the largest increase in savings. Those with younger children may still be limited on savings due to helping with college tuition or housing costs. Some potential ways to maximize savings in this period include:

 

  1. Savings to an independent retirement account such as a 401(k) or IRA.

 

  1. Increase your savings to a company matched retirement plan.

 

  1. Max out the Health Savings Accounts at your employer, if applicable

 

Another way to “catch up” with savings during the empty nest period is to pay down outstanding debt. For many people with debt, the percentage of the interest rate on the debt is in many cases much higher than the possible rate of return on savings and investments. If this is the case for you, it is more beneficial for you to work with a financial advisor and make a plan to pay off your debt.

The empty nest period can also have an element of fun, and many financial advisors will suggest you treat yourself to something you have always wanted to do. Afterwards, it is time to get serious about making a plan regarding how to save for retirement.

If you are not happy with your current retirement savings and are moving into the empty nest period, have faith. Keep in mind that a couple earning $100,000 annually can still accumulate over 1 million in retirement by merely saving $30,000 each year of income for 15 years at a return rate of approximately 8 percent. This is assuming they are starting with a bank account of zero when beginning their retirement savings plan.

To learn more financial planning tips and how to save for retirement during the empty nest period, or any time in life, visit www.SummitBrokerage.com. Summit Brokerage Services has been voted the #1 boutique independent broker dealer in the country. Let us show you why! To experience the Summit difference, learn more about our network of independent financial advisors, and begin creating your financial planning documents, visit https://www.summitbrokerage.com or call us at (800) 354-5528.

 

To learn more and find a local Summit Financial Advisor you feel comfortable with, both personally and professionally, visit https://repoffice.summitbrokerage.com/locator/index.aspx

 

About Summit Brokerage Services, Inc.

Summit Brokerage Services is part of Cetera Financial Group. Summit Brokerage provides a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.

 

About Cetera Financial Group

Cetera Financial Group® (“Cetera”) is a leading network of independent retail broker-dealers empowering the delivery of objective financial planning advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions.  Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations.  Independent financial advisor support resources offered through Cetera include award-winning wealth management and financial planning and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology.  For more information, visit www.ceterafinancialgroup.com.

*”Cetera Financial Group” refers to the network of retail independent broker-dealers encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, Girard Securities, The Legend Group and Summit Brokerage Services.

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