By: Ian Maddox, CRPS®
Although retirement means you’re done working and can enjoy the fruits of your labor, ask yourself one question: Would you want your kids to enjoy it too? Most retirees tussle with the decision to leave their children money after they’ve passed on. You know what they say, “You can’t take it with you.” Saving for retirement always has its perks. You get to enjoy your earnings, see all of your hard work pay off, and do some of that much needed traveling you’ve always wanted to do.
What if you opted out? As hard as you’ve worked all these years, maybe you should level the playing field for your kids. They need to know what it means to work hard for what you want.
Although you never stop being a parent, your kids grow up right in front of your eyes. They start families of their own and most young adults I know are grateful that their parents sacrificed to take care of them and provide for their every want and need. From the marching band rehearsal you picked them up from, the numerous amounts of loose leaf paper you purchased, and all of the cookies you baked for their school Christmas parties: you’ve been right there cheering them on! Why wouldn’t they want you to enjoy your Golden years?
According to a USAA article, the Center for Retirement Research at Boston College reports two-thirds of baby boomers are expected to receive inheritances. However, they go on to say that even with such a great amount of retirees, the nest eggs of many parents are being eaten up due to them living longer.
Of course, there are alternatives. You could always enjoy your money with your kids while you’re still here. Trips to Disney Land are always recommended! Also, instead of setting up a trust fund, start your children a college fund. That way, you won’t have to worry about them squandering the money. You could also give it to charity. If you’re passionate about one of Earth’s many causes, leave your mark. Your legacy could help save lives!
All that being said, this is not to deter you from leaving your children an inheritance if that is what you want to do and are able and willing. Let your kids know upfront whether or not an inheritance will be theirs in the future. This will help you plan better for retirement and also help them plan for their financial future as well. Communication is the key to eliminating confusion!