So, what to do? Well, you could take a trip around the world, if you can afford it. Just think of all the costs you had to bear as the parent of one or more children: food, clothing, education, etc. Revise your budget to reflect reduced expenses and to reallocate a greater proportion of your earnings to savings whenever possible.

Once you have revised your budget, revisit your financial goals. Better yet, you can also use the "empty nest" time and reduced family expenses to increase contributions to your retirement account, including an IRA. Devote more of your savings to your long-term needs.

There are several IRA types from which to choose, including the traditional, Roth and spousal IRAs. Now is the perfect time to invest in your future retirement with the money you had been spending. Determine whether a traditional IRA or Roth IRA may be more appropriate.

Begin Thinking about Long-Term Care Needs

Also, depending upon your age, this may be the perfect time to begin thinking about your possible future long-term care needs. Consider purchasing a long-term care insurance policy to help cover expenses such as a lengthy hospitalization or home healthcare.

Accordingly, adjust your investments to reflect a shorter time horizon. Protect the financial gains you achieved. Now is the time to consider switching from more long-term aggressive investments that offer greater potential returns but at a higher risk, to safer options that offer lower potential returns but more stability.