The Quiet House and the Road Ahead

Looking back to when my three kids were teenagers, it makes me smile to think that my

wife and I would go on and on for hours about how excited we were to have them out of

the house and living life on their own. Fast forward several years as a now even older

me is sitting on a plane as I return to our now empty nest after helping our middle child

move into her own place nearly 1000 miles away.

You can probably already guess what my conversions with my wife will now go on and

on for hours about? About how excited we are to have them return. The activity, labor,

emotions and seasons of life work in wondrously confusing ways.

What now? Many empty nesters will suddenly find themselves with more time and

more money. Two incredible valuable blessings to wake up to each day.

Here are a few things to think through as you pace around that now quieter house. This

is certainly not an exhaustive list, but hopefully it will spark ideas around improving

and/or setting a plan for your future.

Retirement Plan - Hopefully you have a plan already. This is the time to reassess to

discover if you are still on track to hit your desired goal(s). If not, don’t panic. Time to

spend a bit of that extra time on your hands to hunker down and map things out. Find

out what it is going to take to accomplish it. Don’t retire too early. Better to leave a

stressful job and take one that pays less rather than allowing your stressful job to

convince you to stop working altogether a bit too early. More people run out of money

in retirement than you think. Working a few additional years makes a big difference. I’m

not saying you want to, but you may need to.

Budget – Make a monthly budget that you’ll stick to today that contributes to your plan.

Make a future living in retirement budget to better protect yourself against running out of

money while living in retirement. Some factors to consider – Go to the Social Security

website, create an account and find out how much your estimates benefits will be at age

62, 67 and 70. When doing your future budget, factor in those specific figures and do a

conservative income estimate in case social security benefits are decreased. Don’t

forget that your future retirement expenses will be smaller in some areas but will

increase in others. You will have more time on your hands and more free time often

equals more outgoing cash flow. Those items on Amazon that look foolish when you

are working suddenly appear extremely desirable when you scroll by them enough

times.

Debt - Do your best not to add any debt at this point of your life. In this vien, I have had

many conversations with individuals and couples who are putting every extra dollar

aside to pay off their mortgage instead of using a chunk of that excess cash to add to

retirement savings or general investment savings. Yes, it is nice to no longer have a mortgage but remember as many have said before; “You can’t borrow money for

retirement, but you can borrow money for a home.” Putting more away into a wisely

invested investment account, adding to tax protected or tax free (Roth) retirement

accounts can potentially yield some impressive investment returns.

Inflation - When doing your budget don’t forget to factor in inflation at roughly 3% a

year. McDonald’s average Egg McMuffin cost over time proves that to not consider

inflation is McDangerous. Average Cost: 1974 - .63 cents, 2004 - $1.89, 2024 -$5.44. 1

Who doesn’t like a good Egg McMuffin, with a bold cup of coffee, while sitting on the

back deck? Make sure you factor inflation into your future budget. It will make a

difference.

Many other factors should be considered, such as Estate planning, new or increased

time spent involved with your hobbies, caring for aging parents or young grandchildren,

potential additional traveling to see children, grandchildren, family and friends, money

you wish to leave behind for children, dream vacations, future taxes, life insurance,

charitable giving and long-term healthcare. Yes, it is a lot! You’ve already successfully

navigated the “a lot” of raising children and having a plan for the future is within your

ability as well. We are here to help you traverse this new unchartered territory in your

life and help decrease the chances that you are caught off guard. Give us a call, we

would love to meet you.

1 How Much Is McDonald’s Egg McMuffin Price? - Fast Food Menu Prices

Investment advisory services offered through Alphastar Capital Management, LLC, a SEC-registered investment adviser.  SEC registration does not constitute an endorsement of the firm by the SEC nor does it indicate that the adviser has attained a particular level of skill or ability.  Fixed insurance products are offered through Ironwood Financial Group, and Alphastar Capital Management is not involved in the offer, recommendation, sale or management of commission-based fixed Insurance products. Alphastar Capital Management and Ironwood Financial Group are separate and independent entities. This is for informational purposes only and is not intended as legal, tax or investment advice or a recommendation of any particular security, investment product or investment strategy.