If you knew you would inherit $6M, would you do things different?

[Anonymous]

We live nicely in DC area with decent HHI to support our lives however I’m cheap and we don’t have new cars or fancy vacations. I know that I will inherit at least $6M at some point. Parents in late 70’s. Would you do things differently like splurge on vacations?

[Anonymous]

Inheritance is difficult to plan around, your parents could live another 20 years. The money belongs to them and they could spend or lose it all before you inherit it.

It's all about risk tolerance though, you could increase your spend moderately since you have a high probability of having that support in retirement.

[Anonymous]

No way. You never know what could happen.

[Anonymous]

Anonymous wrote:No way. You never know what could happen.

+1

1. It’s not yours until it’s in your possession.

2. It’s a bit morbid to look forward to someone’s death

[Anonymous]

I'm also in this situation and feel as you do OP. But no, we just live as though we won't get it, simply because if anything changes I don't want to wind up stuck. My parents have even told me stuff like "don't go a 529, there's no point" and we have one anyway. Anything could happen. I have a retirement plan based on inheriting nothing.

I do sometimes allow myself to think about what I would do if I got that windfall. But only once in a while,and I don't let it become part of a concrete plan.

[Anonymous]

No. You don't know how much end of life costs may cost your parents.

If they still have 6 million when they pass away, then great. Then you can use it for your retirement. If they don't, at least you are prepared.

[Anonymous]

Yes, but most of the money is in a trust and I’m also a beneficiary (parent controls). So I could tap it now if I had a legitimate need (like a sick child or whatever) and it pays education costs.

It’s not the vacations although it has been a factor indirectly. Biggest impacts are kid schooling choices and career risk choices.

[Anonymous]

We will inherit significantly less, $2m, and yes, we are taking bigger family vacations (Europe rather than the beach for example). Because, I want to enjoy the time with my family and expose them to these opportunities. It is not at the expense of our/the kids future. Our kids are through college (we set aside enough in their 529s to cover that), our retirement is just fine for our lifestyle. We arent getting off alover the place all the time, but take one abroad vacation per year as a family. As long as our young-20s kids want to do this with us, and we can afford it, we're doing it. And, to be clear, even if the $2m were to suddenly disappear (one of the parents needs 24x7x365 live in care for a decade), we could still afford these trips without affecting our future or the kids future.

[Anonymous]

I might spend more on vacations or other family events. Your kids will grow up and not be as interested in spending time with you. If you can spend some $$ now, do it.

[Anonymous]

I will inherit a bit more than that, and mine is almost certain and closer (parents in their 80s, many discussions about their end of life planning, they definitely are spending it or getting divorced/remarried at this point). We don’t do anything differently on the expectation of getting that money. But we are also very high income so while we are somewhat cheap, we also have plenty of our own money to throw around as we want.

[Anonymous]

My parents have told me I can expect $2 million. I act as if I'll never get it. I'm not privy to their finances and don't know what they're planning with long term care. If I eventually get $2 million, that will be a nice windfall. But I live my life as if nothing will ever come.

[Anonymous]

I’m in the same situation. I only work part time so I can care for my aged parent. I’m not worried about retirement. It’s nice.

[Anonymous]

Hurry up and die, mom/dad. Come on OP.

[Anonymous]

What’s a decent HHI? Ours is mid to low 6-7 figures so we technically don’t need the money, but it’s nice to know it might be there. We do drive nice cars and take expensive vacations. DH will stop working when the inheritance comes.

[Anonymous]

Anonymous wrote:I might spend more on vacations or other family events. Your kids will grow up and not be as interested in spending time with you. If you can spend some $$ now, do it.

This or the kids won’t be able to spend time with you. Once they high high school, if they play a sport, vacation opportunities are very limited. We take as much as we can.