Does having an inheritance change your strategy?

Fixed.

 

As tempting as it is, it's a dangerous mindset and will set you back in the long run.

Rely on your own abilities to generate wealth - that way you will never be disappointed.

I have an aunt with no kids and some quality unencumbered properties. She has said she will pass on her wealth to her nephews and nieces.

I said pass them onto my siblings. I'm fine. It's not that it's not tempting but I know it will make me complacent if I factor in any inheritance to my calculations.

Back against the wall is when people perform at their best.

 

My mother in law (aged 65) is going through a divorce as we speak. Her and her ex husband own 7 unencumbered properties that I know in the Will was all coming to us and her sister.
Value estimate minimum say 4mil.

She is now going through family court and who knows, may end up with 1/4 of that. I also think it’s a safe bet we will be out of the will from the step father.

Bang! We just “lost 3million” and then some with capital growth.
You would think we would be shattered? The reality is we never for a second considered that inheritance in any kind of future planning and let it have an effect on financial decisions we currently make.

Did we talk about the inheritance?? Ofcourse we did! Anyone on here set to get any and says they haven’t talked about it is full of ****. It’s nice to think about getting large chunks of easy money, but just don’t plan for it.

 

Inheritance should be invested to become perpetual for future generations
Not viewed as a windfall
Most on this forum would use any inheritance to further their investments/pay down debt
Others I know who have inherited wealth ended up frittering it all away on holidays and cars within 12 months
A lifetime of work and saving by someone just wasted

 

I know a lot of kids who will get very large inheritances.

it always changes things. This does not mean the kids have no purpose - but a large inheritance allows kids to move into things they might not be able to do - the kids can be a medical doctor doing charity work in Africa, pursue a career as a ballerina in London or choose to remain at home full time looking after kids instead of paying down the mortgage.

if you are going to inherit 8m a year retirement stream and you say it has not affected your mindset you are a better person than me. It would affect me.

a good succession plan involves talking to the kids and getting them on board with what will happen with the parents estate. And that can include a chat about how it will impact the next gen.

 

Having a future inheritance does not change my strategy. Rather, inheriting a strategy (+grit, self belief, financial literacy...) is far more valuable. I'll be quite disappointed if I'm not able to pass this on to my kid. There is nothing as satisfying as accomplishing things yourself and really the chief task of parents is raising independent adults who can thrive on their own.

 

Thank you everyone. So informative to hear from lots of people that are witnessing the good, bad and ugly of inheritances. Lots of sad stories! I can’t imagine ever wanting to lose people so I could get their inheritance faster or going to court with family over an inheritance!
It’s not a question for us of whether we should be hard working, live within our means or learn to invest well etc or not, we’re all about these things.

 

Friends of ours were in this position, husband was in line for (and eventually received) a substantial inheritance.

They had a solid asset base, but on retirement husband spent his super freely as he counted on the inheritance. (Wife had worked part time with minimal super.)

I remember her being very concerned, because if her husband had died before his parents, the inheritance would have gone to her children. The difference in their attitude to the inheritance (and the different consequences) did cause some conflict.

 

It's Cream

Mum's about to turn 97 and still going strong and Dad made it to 93

Also means I have to have enough for a long retirement ....

Cliff

 

She’ a toyboy

 

Go harder

 

Either that or it was several years ago.