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If youre recently an empty nester, experts recommend you quit investing in certain things to prioritize your future.
Below are the top things experts suggest you do once your kids leave the nest.
He said the stock markets 7% annual return after inflation provides income security if invested properly.
401(k)s, IRAs and Roth IRAs should be top funding priorities once children are independent.
Marty Burbank, estate planning attorney and owner ofOCElderLaw, recommended the same.
Instead, he suggested maximizing contributions to tax-advantaged accounts like 401(k)s and IRAs.
I often advise clients approaching retirement to reassess how theyre allocating funds, Burbank said.
While college is temporary, retirement can last 30 years.
Prioritizing your financial security is key.
Clients are often surprised to find theyre overpaying forlife insurance orcollege when those needs have changed.
Burbank feels permanent life insurance beyond when kids are dependent is unnecessary.
Those premiums would serve you far better invested for retirement.
Ive helped clients redirect six figures into retirement accounts by optimizing life insurance.
Downsize Your Home
According to Klesinger, downsizing homes also generatessubstantial retirement funds.
Selling a larger house and investing proceeds generates higher returns than home equity alone, Klesinger said.
My firm guides high-net-worth families to investments producing retirement income for potentially decades.
He said downsizing to a smaller residence and investing the proceeds can generate income during retirement.
Empty-nesters have likely built up equity in their homes over the years, Blain said.
According to Orefice, preserving your homes value is essential.
Burbank emphasized the same.
Your adult childrens financial future is now their responsibility.
Yours is ensuring you have income for an extended retirement.
He recommended making that your priority by reassessing life insurance, college contributions and downsizing your home.
Redirect those funds into retirement accounts for your own financial freedom.
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