29 August, 2018

When the Empty Nest is No Longer Empty

What happens when adult kids return home to live.


You did a great job raising your kids. You got them through school. So why are they moving back in with you? And what does that mean for your plans? If you’re retired or will retire soon, you may need to re-evaluate your options.


The ongoing challenges of employment for millennials means lack of financial stability and delayed or failure to launch. While they may be lucky enough to have stable jobs, they may also be looking to save money for a down payment on a home, or may be hoping to start a family. They may even be moving back into your home with their significant other. Whatever the situation, this can have a serious impact on your financial position, as they look to you for support. 


Do your plans change? 

You probably had big plans to enjoy your retirement. Perhaps you renovated the house, turning your child’s bedroom into a gym or craft room. Your plans for travel include all the exotic locations you want to visit. The timing of your retirement goals may be impacted if you have an additional financial burden of supporting your adult children. If you had planned to downsize your home, for example, you may have to delay doing so if your kids move back home.


Do you need to move the goal post?

When your life circumstances change, it’s important to review your financial plan to determine if any adjustments are necessary, either in terms of updating your goals or your savings rate. Do you have the assets set aside for unexpected spending or do you need to start additional savings?  If most of your wealth is in your home, how will you access the capital? Will you downsize to free up equity, or secure a line of credit against your home that can be used whenever you need it? And, one of the most critical questions: if you have unexpected expenses, will you still be able to support yourself in retirement in the lifestyle you want? 


I can help you re-evaluate your situation and address any concerns you may have. I can also speak with your adult children to see if solid financial planning will help them be independent sooner.


Contact our office today to see if you’re on track to meet your financial goals, even if your children return home.