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This should be the very least of his worries. Why should he care if she doesn't want to spend more on herself? She is content with her life the way it is, which is rare and worth respecting.
Very likely, however, inheriting that sum of money will inspire her to indulge in some things she does enjoy. She may not care about cars or clothes but maybe she'd like to travel. Or to be able to send up a fund for her favorite charity.
He's less concerned about his daughter - but he would like her to own, for example, a reliable car and live in a safe neighborhood.
I find it fascinating because his two children grew up in the same household with the same parents (role models) with the same family culture yet came away from it with very different value system.
People who design their financial plans around inheriting a fortune might be disappointed. Even if parents do not go on a spending spree to enjoy their retirement, end of life care has gotten more and more expensive and those with wealth do not want to finish life in a Medicaid funded facility. Nice rest homes with excellent care are extremely expensive and can eat through a fortune pretty quickly, and sometimes those selfish parents can hang in there for several years spending money on expensive care homes.
Those hoping to get a big inheritance had better hope their parents will not be in a long term care situation for years, which does happen.
One of my kids has a friend whose dad had a massive stroke and is in an excellent and expensive facility. They were shocked to see the $14k bill for each month (which will continue to go up). Their first thought was apply for Medicaid without realizing the logistics behind that - he doesn’t qualify until most of his considerable assets are paid out. The doctor and PTs feel he will survive but may never leave the facility.
Since he had planned to help pay for any grandkids’ college costs, that is now out the window. Don’t count your chickens, millennials.
Those hoping to get a big inheritance had better hope their parents will not be in a long term care situation for years, which does happen.
One of my kids has a friend whose dad had a massive stroke and is in an excellent and expensive facility. They were shocked to see the $14k bill for each month (which will continue to go up).
While $14K/month is expensive, you still need to put that in the context to the dad's net worth. Imagine, for a moment, that the value of the dad's stock portfolio goes up or down by, say, $750,000 each day and throws off a million dollars per year in dividends.
This really shouldn't be a surprise; it's been predicted for at least a decade that as the Boomer generation dies off it will trigger the biggest inter-generational transfer of wealth in history.
This really shouldn't be a surprise; it's been predicted for at least a decade that as the Boomer generation dies off it will trigger the biggest inter-generational transfer of wealth in history.
Yes, but don’t forget us Gen Xers in the middle!! I expect to receive a significant inheritance some day as my boomer age parents have done very well in life. It won’t change my lifestyle any, I have all that I need, and I plan to pass everything on down to my kids, who span the millennial and Gen x generations.
My question to the younger generations who do receive substantial inheritances is…will you be passing it down as well?? Do the millennials and Gen Xers think about leaving a legacy for their kids, or will the YOLO mindset that seems so prevalent today rule them their entire lives?
He's less concerned about his daughter - but he would like her to own, for example, a reliable car and live in a safe neighborhood.
I find it fascinating because his two children grew up in the same household with the same parents (role models) with the same family culture yet came away from it with very different value system.
I am in this exact same situation. Except my two are actually boy/girl twins and both received extensive training in investing and financial planning. My son is so grossly irresponsible it hurts my head to think about it. His sister is the exact opposite. Even she thinks he’s from a different planet or some kind of imposter. It puts me in a very difficult position as they will be inheriting an amount that could last multiple generations. I either need to just split it evenly and know my son will lose it all to creditors and his own foolish choices, or make sure his share is controlled so he is protected from himself. Leaving it outright to my son is akin to flushing it down the toilet and would be irresponsible of me. It’s very annoying.
I am in this exact same situation. Except my two are actually boy/girl twins and both received extensive training in investing and financial planning. My son is so grossly irresponsible it hurts my head to think about it. His sister is the exact opposite. Even she thinks he’s from a different planet or some kind of imposter. It puts me in a very difficult position as they will be inheriting an amount that could last multiple generations. I either need to just split it evenly and know my son will lose it all to creditors and his own foolish choices, or make sure his share is controlled so he is protected from himself. Leaving it outright to my son is akin to flushing it down the toilet and would be irresponsible of me. It’s very annoying.
Split it up however you wish but put his in a trust that he can't break.
Yes, but don’t forget us Gen Xers in the middle!! I expect to receive a significant inheritance some day as my boomer age parents have done very well in life. It won’t change my lifestyle any, I have all that I need, and I plan to pass everything on down to my kids, who span the millennial and Gen x generations.
My question to the younger generations who do receive substantial inheritances is…will you be passing it down as well?? Do the millennials and Gen Xers think about leaving a legacy for their kids, or will the YOLO mindset that seems so prevalent today rule them their entire lives?
Those are great questions.
How does a Gen Xer such as yourself prepare your kids? Of course, as an adult, your spending patterns are relative set, as you point out you don't expect a substantial inheritance to change your lifestyle to any significant degree.
But how do you prepare your own children? How do you ensure they live a life of purpose? As parents, we want to give our kids values, plus educate them to give them an analytical framework, and try to guide them into a life where they find their own way. The LAST thing we want to do is hobble our children with wealth.
These are difficult things. In some sense, it is all about the culture inculcated around the family dinner table over many years. Children learn more than we give them credit for - that is why discussions of thrift, philanthropy and purpose are important even when kids are in elementary school.
Last edited by moguldreamer; 03-02-2024 at 01:51 PM..
As a Gen x/millennial household with young children, I've involved them in financial discussions around the dining table. Mommy and Daddy aren't buying you this toy, because instead we're saving for a beach trip for the family as an example. They have plenty of toys, but the memories made going to the beach or corn maze are worth more. They forget their toys, but will recall the tryouts we've taken.
They each have their UTMA accounts and in the evening we'll go over who "won the market" that day. They have HYSA accounts and I try to explain the difference. The 2 year old just smiles at me, but we're making progress I think.
During church service, they are given the donations to add to the collection for charity. We've explained that money goes to help people in need. We asked the 5 year old what she would do with a million dollars and she responded with save it, so she never runs out.
While at Disney World recently, they were told how much they could spend for a toy to take home. I was happy to see the oldest not settle for just anything, after she didn't find anything to her liking,she said she'd like to save her money and if instead she could get something from Amazon when we got home. I didn't have any issue with that delayed gratification, plus she owns Amazon in her UTMA lol not bad for a 7 year old... they all own Disney in their UTMA accounts and I swear one day when we were there, the stock jumped 11%. I'm sure our spending that day had something to do with it...
As for me getting an inheritance, I have no expectations. I manage my parent's accounts while they're retired in their home country. They don't have much, but they have enough for their needs. I'm a 1st generation immigrant and my parents got me to the US. That's the best thing they could have done for me. Since I knew I'd never get an inheritance, I've worked hard to set myself up in life. At 43 I have a paid off home, cars and no debt. 30% of my income gets invested and I'll have a federal pension so the chances of having a comfortable retirement are high.
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