You've finally made that last college tuition payment for your youngest. That chapter of your parenting journey is complete.

Now, a new phase begins. For the first time in perhaps thirty years, the focus can shift back to you, your spouse, and your career.

It might be clearer than ever that your job served a purpose: ensuring your children received a great education. And they have.

Now you're looking for something different. You might want to accelerate your retirement planning or keep working hard to retire as soon as possible.

You might also wonder if you can take a less demanding job and are unsure if you can afford a pay cut.

You also know that your family's needs will continue to evolve. Support for your kids might transition from college costs to helping with a down payment on a house or a wedding. It could also mean embracing the grandparent role.

All these things require money, and, more importantly, a clear understanding of your finances and how you can use them to navigate all the changes in your life.

This is a good time to take stock of your financial situation.

• Gather statements for your 401(k) and other retirement accounts.

• Review your insurance policies.

• Dig out your will.

• Check your mortgage statement and any other debts.

• Total your checking, savings, and CD balances.

Get a clear picture of where you stand. You likely have more cash available to save, invest, or spend now that college expenses are gone. Taking inventory will help you plan your next steps.

Step 1: If you have any debt with an interest rate above 10%, paying that off should be your top priority.

After addressing high-interest debt, having an honest discussion about what truly matters to you can provide excellent guidance. If helping your adult children with wedding costs and down payments is important, then focusing on saving money outside your retirement accounts might be the right strategy. These funds can still earn interest and be invested, and you won't face early withdrawal penalties before age 59.5. How to invest these funds? I recommend aligning your investment timeline with your spending timeline. For example, if a wedding is likely within 2-3 years, I'd suggest easily accessible short-term investments like high-yield savings accounts, CDs, and other cash-like investments. If the timeline is 5 years or longer, adding stocks could be beneficial.

If taxes are your biggest concern now, your workplace retirement accounts are the first place to look. If you're 50 or older, you can contribute up to $31,000 to your 401(k)s, 403(b)s, and 457(b)s (for government employees). For 2025 and 2026, all your contributions can be pre-tax. So, a married couple in their 50s or older can reduce their taxable income by $62,000 just through their retirement plans. Additionally, if you have a high-deductible healthcare plan, you can further reduce your income by contributing to a Health Savings Account (HSA). If you're on an individual healthcare plan, you can contribute $4,300, plus another $1,000 if you're 55 or older. Family plans allow for $8,750. Money you contribute to your HSA goes in pre-tax, interest on your cash is tax-free, and when you withdraw money for qualified medical expenses, those withdrawals are also tax-free. At this stage in your career, this can lead to significant tax savings in the year you contribute. This reduction in income applies to your highest tax bracket.

Now, if your goal is to have a less demanding job with more freedom, you're probably looking at a pay cut. Here are some things to think about:

1. Do you have a cash cushion? A healthy savings account can give you the confidence and peace of mind to take a pay cut.

2. Can you still maintain your retirement account contributions? Remember, without those tuition payments, you don't need the same income level to maintain your current lifestyle.

You also might not need to maintain your current savings rate. If you've always been a saver, you might not need to save as much, or even at all, anymore. The great thing about investing is that your investments can grow even if you're not actively contributing. This can feel strange to someone who's always saved. The idea of not saving anymore might feel irresponsible, but unless your goal is to continually grow your net worth indefinitely, there comes a point where you no longer need to save. If you want a better understanding of when that time might be for you, financial planning can help. It can show you the numbers and open your eyes to new possibilities.

The information in this blog is the opinion of Nathan Tomkiewicz and does not reflect the views of any other person or entity unless specified. The information provided is believed to be  reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through Tomkiewicz Wealth Management, LLC, an investment adviser registered with the State of New York.