Financial Planning for Empty Nesters: What You Need to Do NOW!

If you’re like us, being empty nesters has involved reevaluating our financial goals and priorities. Now that the kids are financially independent (mostly–we still have one in grad school!), we’re ready to focus on our own financial future. Financial planning for empty nesters can include things like ensuring a comfortable retirement, traveling more, caring for aging parents, and maybe even downsizing to a smaller living space.

I’m thrilled to introduce you today to my friend Susan Alefi, a financial planner specializing in financial planning for empty nesters. With shifts in spending habits, increasing healthcare costs, and retirement on the horizon, many empty nesters are facing uncertain financial futures. It’s not often discussed, but we’re pulling back the curtain and tackling this issue head-on today!

By the way, I was not compensated in any way for this post, nor have Bob and I used Susan’s financial planning services. When I was introduced to Susan, I told her I thought the topic of empty nester financial planning would make a great topic for a blog post. She kindly agreed to answer my questions and allow me to pass the answers on to you.

A Little About Susan

Susan and her husband, Adam, are empty nesters, just like us. They live in San Diego, California, and they have two grown sons, Joseph (31) and Ali (29). One of her sons got married last weekend!

Susan’s journey toward helping others with their financial well-being began when her grandmother, widowed in her mid-50s, faced financial uncertainty. Her grandmother relied solely on her husband for all financial matters, and when he passed, it was a struggle. Susan saw firsthand the importance of financial literacy. Her grandfather’s sudden loss left her grandmother without knowledge of their finances or any accounts in her name.

Additionally, Susan observed her own parents’ selfless financial dedication to their four children. Unfortunately, they neglected to prioritize their own financial security, leading to challenges.

Today, with over two decades of experience, Susan remains committed to helping others avoid similar pitfalls. She is passionate about empowering others (especially empty nesters) to secure their financial futures. Susan founded Serenity Financial Planning with the goal of helping others bring calmness and serenity into their lives as they take the first steps toward prioritizing their financial affairs and achieving financial independence. 

I enjoyed picking Susan’s brain about financial planning for empty nesters and learned a lot! What follows are excerpts from our interview. My questions are in italics and Susan’s answers are in plain text.

Financial Planning for Empty Nesters

Susan, I’m going to jump right in! What should 50-something empty nesters be doing initially to plan for retirement?

Those in their 50s should consider initiating their retirement planning journey by rearranging their priorities to place greater emphasis on securing their own future. To do so, they should first take a “picture” of their assets, itemizing what they own today. Then, they need to consider taking the next step and reaching out to a professional to help them make a plan.

What are some of the most common mistakes you see empty nesters make in terms of financial planning?

I often see empty nesters living in a fantasy world where they believe everything will take care of itself. Sometimes, they think the government will take care of them with Social Security income. This couldn’t be further from the truth. 

Other empty nesters live with the mentality that life is too short and they should live in the moment! (“Who knows how long I will be alive? I’ll spend it all before I die!”) Unfortunately, they neglect to think of what may happen if they don’t die early and instead live a long life. They make the mistake of not planning for how they will be taken care of in their old age (or who will do it). Also, what if they should end up disabled at a young age? 

Sometimes, I see empty nesters with the mentality that their kids will take care of them in their elder years. Unfortunately, they’re not considering the fact that their kids will likely have their own families to take care of and their own financial responsibilities. 

Susan, those are great reminders. Thank you! Beyond those, are there any other cautions you have regarding empty-nest financial planning?

One alarming thing I see sometimes is empty nesters who are trying to get rich quickly by investing all or most of their savings in a business or investment “opportunity,” only to see it crumble. This can be devastating, both financially and emotionally.

Another concern is when empty nesters are overextended in a concentrated asset like stock, real estate, or cryptocurrency. Placing all of their eggs in one basket fails to shield them from potential damage if the basket were to collapse.

What should empty nesters do now to make sure they’re well-positioned for the future?

The first thing they can do is to take advantage of the free resources at my website, SerenityFinancialPlanning.com.

Due to increasing life expectancies, many empty nesters are concerned they may outlive their retirement savings. A good place to start is to utilize the handy calculator on my website that can help them determine when their retirement savings account may be depleted. (Remember, company pension or Social Security income may help supplement your retirement savings accounts.) Additionally, I have blog posts I’ve written that specifically address financial planning issues that are pertinent to empty nesters. Browse them HERE.

Suzy’s Tip: Bob and I found many of Susan’s financial planning calculators to be helpful! She has nearly 40 of them on her website! They range in topic from Life Insurance Needs Assessment to assessing the financial wisdom of Buying a Fuel Efficient Car! (And lots in between!) You can check them all out HERE.

Beyond that, people can schedule a complimentary 30 min consultation with me. Whether it’s me or another financial planner, you’ll want to make sure you’re a good “fit” for each other.

Many thanks to Susan Alefi for taking the time out to share her wisdom on financial planning for empty nesters. To learn more about her, you can check out her website at SerenityFinancialPlanning.com. You can also follow her on social media:

• Follow Susan on LinkedIn
• Follow Susan on Facebook
• Follow Susan on Twitter

What are your questions about financial planning for empty nesters? Let me know in the comments and I’ll ask Susan can help to answer them.