Transitioning to an empty nest is a major life milestone—both emotionally and financially. With your children moving out, you may find yourself with more time, space, and flexibility to focus on your next chapter. This shift presents a valuable opportunity to revisit your financial goals and make intentional decisions that support a secure and fulfilling future.

Whether you’re nearing retirement, downsizing your home, or simply rethinking your financial priorities, here are key strategies to help guide your planning.

Reevaluate Your Retirement Goals

With fewer day-to-day expenses related to children, you may have more disposable income to allocate toward retirement. Now is a great time to review whether your current savings align with the lifestyle you envision.

Steps to consider:

• Assess your progress: Compare your current savings to your long-term retirement income needs.
• Estimate future expenses: Think beyond basic needs—include healthcare, travel, hobbies, and other lifestyle costs.
• Increase contributions: If you’re 50 or older, you may be eligible to make catch-up contributions to retirement accounts like 401(k)s and IRAs.
• Monitor regularly: Make it a habit to review your accounts at least annually and adjust based on changing needs and market conditions.

Maximize Your Health Savings

Healthcare is one of the most significant expenses in retirement. If you’re enrolled in a high-deductible health plan (HDHP), contributing to a Health Savings Account (HSA) can help offset future costs.

Why HSAs matter:

• Contributions are tax-deductible
• Growth is tax-free
• Withdrawals for qualified medical expenses are tax-free
• HSA funds can be used to pay for Medicare premiums and certain long-term care expenses

Even if you don’t use the funds immediately, HSAs can play a key role in your long-term healthcare strategy.

Review and Adjust Your Investment Strategy

As you move closer to retirement, your investment strategy may need to evolve. That doesn’t mean abandoning growth, but rather striking a balance between risk and stability.

Consider:

• Reducing exposure to high-volatility assets
• Increasing allocations to bonds, dividend-paying stocks, or other income-generating investments
• Reviewing your time horizon and liquidity needs
• Diversifying across asset classes to manage risk more effectively

A well-aligned portfolio can help preserve capital while still keeping pace with inflation.

Explore the Benefits of Downsizing

With your children no longer living at home, maintaining a large property may not make financial or practical sense. Downsizing can reduce housing costs and simplify your lifestyle—while freeing up equity for other goals.

Benefits of downsizing include:

• Lower mortgage or housing expenses
• Reduced property taxes and maintenance costs
• Additional funds to invest or save
• Potential eligibility for capital gains exclusions on home sale proceeds (subject to IRS rules)

If you’re not ready to sell, consider other options like renting out part of your home or relocating to a lower-cost area.

Get Your Estate Plan in Order

Empty nesting is a natural time to revisit your estate plan. Ensuring your documents are up to date can prevent confusion and stress for your loved ones in the future.

Key actions:

• Review and update your will, living trust, and healthcare directives
• Confirm beneficiary designations on retirement accounts, insurance policies, and bank accounts
• Consider durable powers of attorney for financial and medical decisions
• Work with an estate planning attorney to align your plan with current laws and your family dynamics

An up-to-date estate plan provides clarity and peace of mind for you and your family.

Make Room for Joy

With fewer daily obligations, this chapter of life is also a chance to rediscover passions and make room for joy. Whether that means traveling, volunteering, starting a new business, or simply spending more time with loved ones, make space for the things that bring fulfillment—and budget for them, too.

Talk to a Financial Advisor

Financial decisions can feel overwhelming in times of transition, but you don’t have to figure it out alone. Working with a financial advisor can help you align your goals, optimize your investments, and plan intentionally for the future.

At Navalign, we specialize in helping empty nesters create personalized, flexible financial plans. Whether you’re exploring retirement timing, planning to downsize, or wondering how to make the most of this next phase, we’re here to guide you every step of the way.

Schedule a complimentary consultation to get started.