When the nest empties, life changes

At first, when the children have left home, it’s the psychological side of things that strikes you — the exhilaration of newly found freedom, or melancholy over missing your kids, or perhaps mixed emotions. But later, practical matters take over. Here’s a look at some common financial matters to consider once your nest has emptied.

The pros and cons of downsizing

With more house than what’s needed, downsizing is a common topic of discussion among empty-nesters. Downsizing gives you more money to invest for retirement and a smaller residence that’s easier to take care of. But moving is a big decision, and there are lots of factors and “what ifs” to take into consideration, so take your time. There’s no need to make a choice right away.

Envision your retirement

With the kids gone, now’s the time to focus on your own future. Envision what you want your retirement to be like, from where you’ll live to how you’ll spend your time.

We can help with the financial side, estimating how much you’ll need to fund your retirement lifestyle for the expected number of years. We can also help you make whatever adjustments are needed today to create the future you want, from increasing the amount you save to choosing appropriate investments.

Evaluate insurance needs

When your children depended on you financially, your insurance coverage provided financial security for them in case anything happened to you. Now that they’re on their way to independence, you may be able to scale back coverage that met this specific need.

Life insurance still plays an important role, however — preserving your children’s inheritance. Many empty-nesters opt for permanent life insurance, relying on the tax-free death benefit to offset taxes payable by their estate.

Review your estate plan

As your children enter their adult years, many of their life decisions can affect your estate plans. For example, if you own vacation property you were planning to hand down to your children, your plan may change if they relocate to another province.

Allow for the unexpected

The nest may be empty, but the doors may not have fully closed at the Bank of Mom and Dad. A child suddenly out of work asks for rent money. Or a child unexpectedly decides on grad school and now you’re tapping your Tax-Free Savings Account (TFSA) to help out. It’s wise to prepare for financial surprises, especially where your kids are concerned.

If your children have left home or an empty nest is on the horizon, be sure to come and talk to us. We can identify any financial planning changes relevant to your situation.

 

This material was prepared for and published on behalf of the representative named herein and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither Assante Financial Management Ltd. or Assante Capital Management Ltd. nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. Certain names, logos or graphics herein may constitute trade names, trademarks or service marks (“Trademarks”) of CI Investments Inc. and/or its affiliates or of third parties. The display of Trademarks herein does not imply any licence has been granted to any third party. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Copyright © 2019 Assante Wealth Management (Canada) Ltd. All rights reserved.