9 Year Mortgage Discuses If Can Empty Nesters Can Still Afford to Splurge?

9 Year Mortgage believes that when children move out on their own many boomer parents seize the opportunity to splurge on themselves. The way most Americans see it, is they have finally reached their empty nester years, they have gotten over life’s biggest spending hump or has their spending only begun? Are these empty nesters spending all of their life savings and putting retirement off a couple more years by splurging on themselves? Continue reading and 9 Year Mortgage will give you the answer.

9 Year Mortgage on The Empty Nester Effect

9 Year Mortgage says that the government estimates that for an upper-income family, the cost of raising a single child from birth to age 18 will cost around $377,000  and this is before they have started college. 9 Year Mortgage believes that once the child or children have left, parents generally experience, in addition to feelings of loss, an invigorating sense of financial freedom. Parents are no longer having to pay for braces, tennis lessons, no extra mouths to feed and no need for a large house and the large mortgage that comes along with it. Plus, once the child or children are finished with college, they are no longer paying for a six-figure tuition. Most would think that once the children have left, parents would start being more concerned with their retirement. That is truly not the case. 9 Year Mortgage found that according to the most recent evidence, that when children leave the house for good, parents have discovered that their days of spending have only just begun. This may sound silly, but it is true. 9 Year Mortgage says that study released last year by the Center for Retirement Research at Boston College shows that when children leave, parents increase their per capita consumption of non-durable good by a considerably large proportion: an average of 51%.  In this case, non-durable can mean loads of expenses that were not part of raising a family. Which includes things such as taking your spouse out to eat without any children with you. 9 Year Mortgage found another study that says empty nesters may spend up to 50% more at restaurants than parents with children. Or it could include a couple of romantic vacations, and indulging in pricey hobbies. Financial advisers say they see it over and over again, empty nester clients take a flying leap into the sea of splurging. 9 Year Mortgage says to be fair, when the children leave it is a momentous life stage for many people. 9 Year Mortgage found that several psychologists say a little retail therapy is more than understandable. Parents whose eyes are not tearing up every time they pass their kids bedroom may find themselves spending out of pure boredom. However 9 Year Mortgage believes the problem with this is that many of today’s empty nesters are also baby boomers and we all know that they are not exactly known for being tightfisted with a dollar. According to AARP, about 30% of boomers age 50 and older reported some difficulty limiting their spending. 9 Year Mortgage says at the last count, the postwar babies were going through $2.7 trillion a year, that is a 71% jump from what people in the same age group were spending a decade ago. Now excessive spending might have been okay while the American economy was chugging along. However post crash, 9 Year Mortgage believes the stakes are even higher for empty nesters trying to fill the void of living by splurging. In an era of economic fragility, when pensions are going the way of the VCR and social safety nets are growing ever-larger holes, experts say that few in the post kid phase and few baby boomers in general, can afford to continue indulging in the kind of fantasy thinking that has long led them to finance now, save later and spend now.

9 Year Mortgage and the Baby Boomers

9 Year Mortgage thinks that to say the boomer generation is unprepared for retirement is an understatement. 9 Year Mortgage found in the most recent Retirement Confidence Survey, the nonprofit Employee Benefit Research Institute reported that just over half of workers age 45 to 54 claim a savings and investment of less than $25,00, this is before pension, social security or home equity. Compare this to their thriftier parents, the typical boomer has only 1% to 15% as many assets and a lot more debt. The nerve rattling turmoil in the market this summer drove this message home. 9 Year Mortgage believes that the empty nester phase can represent a real pitfall, with the combination of pent-up demand and new found discretionary cash can keep a boomer from seeing that this is the last and best opportunity to double down on the savings. 9 Year Mortgage says no one keeps an exact number of people in the empty nest group. However the Census Bureau can tell you there are 33 million married couples without children under 18, but that includes those who have not yet had children or adopted, also those that never did and never will. Experts believe that the majority of that number falls into the “had kids, now they are launched” category. 9 Year Mortgage believes that as America’s population ages, households with children have become the minority, making up 22% of the total, as the empty nesters’ ranks continue to swell. With these population shifts, corporate American has taken notice, studying the so called silver tsunami with the help of consumer marketing firms that focus on folks who have wrapped up their child rearing. On TV you will see commercials for the convenience-food company Buitoni, they pitch candlelight dinners of prepackaged pasta to alone-again couples wanting romance, in another one, you see an online-payment company who encourage surfing for big-ticket purchases as an antidote to the empty nester blues.

9 Year Mortgage on Empty Nester and Baby Boomer Spending

9 Year Mortgage says behind all of the advertising generalities there is a fair amount of complexity and financial burden. For one thing, Americans over 50 have seen the divorce rate almost double from 1990 to 2009, with many of these splits coming after the children have gone. There is also the growing “sandwich” phenomenon, which refills the nest with again parents, boomerang children or both and if they are not moving in and raiding the pantry again, the children might still have their hands thrust deeply into mom and dad’s retirement pockets. 9 Year Mortgage observed that about 40% each of Gen X and Gen Y have gotten financial support from their parents after college, while 25% of Gen Y report that their parents are paying for discretionary items like cell phone bills, insurance and car payments. These parents usually have this whole ‘we are waiting for the kids to get their feet underneath them’ mentality. 9 Year Mortgage thinks that waiting for them to get a salary-with-benefits job, in this awful job market can get expensive, which is a burden advisers say they see all the time. 9 Year Mortgage believes even when some children have successfully made the leap to financial independence, some empty nester parents still find it hard to control their spending.  9 Year Mortgage says that experts believe that boomers tend to overachieve in their hobbies the same way they do in their careers. However, while passionate pursuits and wellness activities like pilates and marathons can help fill those gaping weekend once spent shuttling children to and from soccer games, empty nesters also do not mind easing their wellness exertions with a bit of luxury. However, now with an empty house, there a plenty of things to splurge on at home. 9 Year Mortgage observed that empty nesting is a normal time to begin the dream retirement home project, whether by working with a builder from scratch or remolding the current home. 9 Year Mortgage found a research by Harvard’s Joint Center for Housing Studies shows that boomers as a group spend more than double what Gen Xers do on remodeling and more than four times what every other age group spends. However, the downturn did make a  difference in how 55 plus households finance their dream home. With the overall housing market still depressed, the buyers cannot count on parlaying an existing family home into cash to pay for a new one. So because of this, they are pulling down payments more often from savings and cash on hand, and in the process, often drying out retirement reserves. 9 Year Mortgage found that only 55% of the adult home buyers who made a down payment in 2009 reported that the money came from the sale of a previous home. down from 92% in 2007. To help pay for all the empty nest expenses, 4 in 10 U.S. workers surveyed by Professional-services firm Towers Watson last year reported that, since the crash, they will be working a few years longer than they had originally planned. However, 9 Year Mortgage observed more empty nesters, whether downsized and in need of a job or just fed up and ready to be their own boss, are hanging on a shingle. According to the Kauffman Index of Entrepreneurial Activity, 45 to 54 year old’s accounted for a quarter of all start ups in 2010, while 55 to 64 year old’s made up 23%, up from 15% in 1996. Entrepreneurship is not necessarily a young people’s game, it increases as people get older. When people get older, they often have the experience and capital to get things going. However, 9 Year Mortgage believes that these ventures, can be hard to pull off, they sometimes become a feel good money pit at a stage of life when there is less time to make up any losses. With the crash of 2008, it was a wake-up call to most people for a more mindful way of spending. Even with all of this spending, there are a lot of Americans who are spending less and saving more. 9 Year Mortgage found a report done by Fidelity that the average balance in its 401 (K) plans rose to $75,000 at the end of the first quarter of 2011, up almost 12% from a year prior and 58% from the same period in 2009.

Wrapping It Up With 9 Year Mortgage

9 Year Mortgage thinks that before you start spending your life savings on random things: sit down and make a retirement plan and save for those splurges! Also for those folks out there that have an empty nest and have  debt pay,  off your debt first before you even consider spending money on your wants. It is not like we think that everyone should be keeping there nose to the grindstone without a break and live like monks. Having successfully launched children into this world is no mean feat, and having time and the resources to pursue your passion is one of the amazing rewards of the postkid phase. So before you up your standard of living, 9 Year Mortgage wants you to consider what that would do to your retirement and your savings.  The last thing you want to do is put your retirement off by a couple of years or so. 9 Year Mortgage just wants to make sure that you have the right kind of balance between today and tomorrow.

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