Many Millennials and members of Gen Z often feel they don’t have enough assets to bother getting a Last Will. This is a major reason many remain childless: the cost of everything is rising, so married couples choose not to have children (which is part of the reason they’re not having children). This article mostly pertains to U.S. citizens but also applies to Canadian childfree couples. We’ve previously posted about childfree couples and estate planning; you can read it here. We’ve come across some more helpful tips for estate planning for childfree couples. Did you know that “investing backwards” is a thing? Here are three helpful tips that may help you if you’re stuck in this situation and are looking to invest and acquire more income:
- Prioritise flexibility in your lifestyle: do you need a house in the suburbs if it’s just you and your spouse, or would a small apartment work for the two of you? Or, can you work remotely anywhere? This could impact your housing costs, and if you work remotely, you may want to take advantage of the varying housing costs across states (or provinces).
- Invest backwards: this tip is definitely for U.S. childfree couples looking to create retirement accounts; focusing on a taxable brokerage might work best for you.
- “Who will take care of us when we get older?” That’s something you may want to consider as you and your spouse get older. How will you plan for long-term care if you don’t have children to help look after you? Have you ever heard of long-term care insurance? Only 2.5% of childfree couples in the United States have received financial support from friends or family, so they need a long-term plan for retirement and investment.
You may want to read more about how childfree couples can invest in both their financial and retirement planning here.