Invest backwards – planning for Childfree Couples

Many Millennials and members of the GenZ generation often feel as though they don’t have enough assets to bother getting a Last Will. This is a large reason as to why many remain childless: the cost of everything is rising, and so married couples choose not to have children (this is part of the reason as to why they’re not having children). This is an article that mostly pertains to U.S. citizens but also applies to Canadian couples who are childfree. We’ve previously posted about childfree couples and estate-planning, which you can read here. We’ve come across come more helpful tips when it comes to estate-planning for childfree couples. Did you know that “investing backward” 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:

  1. Prioritize flexibility when it comes to 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 different housing costs that vary from state-to-state (or province-to-province).
  2. Invest backwards: this tip is definitely for couples in the U.S. who are childfree and looking to create retirement accounts, focusing on a taxable brokerage might work best for you. 
  3. “Who will take care of us when we get older?” That’s something that you may want to think about 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 States have received money from friends or family, so there needs to be 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