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Youre dealing with enormous change while also thinking about the future.
Read below for the top money movies experts recommend taking.
Also see top items empty nesters should buy in retirement.
I always tell my clients to adjust their savings strategies and ensure they align with their new life stage.
With fewer expenses, we travel internationally once a year now, he said.
Experiencing new cultures and adventures is rewarding after years of focusing on family responsibilities,Klesinger said.
The trip budget comes from funds previously spent on the kids activities and expenses.
Experts agree that this period is perfect for catching up on any retirement savings gaps.
Ive significantly improvedmy financial outlookby redirecting these funds to my retirement accounts, he said.
This personal experience has shaped my advice to clients in similar situations.
Streamline Your Budget
ensure to analyze and adjust your budget to reflect the change in household size.
For example, redirect funds previously allocated for childrens expenses towardsinvestments or debt reduction.
Consider Downsizing
A big money move to start considering is the possibility of downsizing your home.
A smaller home can reduce maintenance costs and provide asubstantial cash influx, Godur said.
Klesinger took a similar approach.
We downsized from a 5-bedroom house to a smaller home, investing the difference from the sale.
He explained that the smaller home cut costs and the investments providedincome and growth.
Consulting with a financial advisor can help tailor this strategy to your specific needs.
Pay Down Debt
According to Salahi, empty nesters should also aggressively pay down any remaining debt.
Statistics show that [many] Americans aged 50-59 still carry mortgage debt, he said.
Klesinger similarly agreed that paying off the mortgage was a top priority for him as an empty nester.
We accelerated payments to pay it off in 15 years instead of 30, he said.
Eliminating thatlarge monthly paymentprovides security and flexibility in our budget.
Reassess Insurance Needs
Another critical move to keep in mind is reassessing insurance needs.
Empty nesters often find themselves over-insured, paying for coverage they no longer require, Salahi said.
Update Estate Plans
Empty nesters must update their estate plans, Salahi said.
A shocking 60% of Americans still need awill or estate plan, he said.
This oversight can lead to significant legal and financial complications for heirs.
These financial moves can dramatically alter an empty nesters economic trajectory, he explained.
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