Anonymous wrote:No, that’s idiotic. It’s the best tax loophole out there.

+1

Save tax free and build wealth to pass on to the next generation, just like you're expecting to have happen from your parents.

Anonymous wrote:

Anonymous wrote:Nope. You don't know what can happen.

THIS!!! My cousins (my parents' generation) had well over $20M decades ago. Their three children all expected to inherit it. Then their dad died and their mom got a new boyfriend. She cut off her kids and is leaving the money to him. Completely unexpected and my cousins (the three grown kids) had all based their lives around getting this money.

Your parents could also lose the investments, have long-term elder care needs that can zap through a big chunk, or anything else that could change a person's fortune.

Your cousins were morons and did not have an appropriate estate plan. This scenario could have been easily avoided.

If your parents have 20M+, and have an air tight plan, there is no reason to think you won't inherited the lionshare of that.

Odds are they have good LTC policies to help buffer some of that cost, but pending Armageddon, you're going to easily inherited 5M +

Anonymous wrote:

Anonymous wrote:I feel like no one answering here is actually in a true position of inheriting real money. My parents are roughly 20M net worth and it will only grow as it is invested. They couldn’t spend down the principle if they tried. Of course, I am counting on inheriting a large amount in my due time, it would be foolish to plan otherwise. We save the minimum in retirement but otherwise aren’t worried about it in the slightest. We have other worries but money isn’t one of them. I know we will be just fine in retirement.

This is us, too.

Good for you guys, but $20M that couldn't possibly be spent if they tried is a far cry from OP's guesstimate of $3M at the low end.

Contribute up to the match, max out Roth. I don't believe you are living life of deprivation. It may seem to you as you are counting on parents' money and possibilities with it, but it's not yours quite yet.
If you want to do something 'crazy' because you still think you have the money coming, take some risk with investments. Losing $50k-$100k, which you won't, is not going to kill you. You were going to piss it away anyway on a car or whatever because you feel deprived. $50k-$100k needs to be in the right company, not just ticking @10% a year in 401k with high fees.
Shortly, take some more risk because you have money coming in, don't go shopping because your feel deprived. That money coming in made you feel deprived suddenly. You make good money. You are not deprived.

Anonymous wrote:I feel like no one answering here is actually in a true position of inheriting real money. My parents are roughly 20M net worth and it will only grow as it is invested. They couldn’t spend down the principle if they tried. Of course, I am counting on inheriting a large amount in my due time, it would be foolish to plan otherwise. We save the minimum in retirement but otherwise aren’t worried about it in the slightest. We have other worries but money isn’t one of them. I know we will be just fine in retirement.

This is us, too.

Absolutely not.

Anonymous wrote:Don't count your chickens before they're hatched.

End of life care can be extraordinarily expensive and deplete that nest egg fast.

My parents have some money but they are super tight lipped.

One day in my slummy apartment building when I was in my late 20s, I overheard some middle age lady on the phone whine that her inheritance was disappearing because of medical bills. The numbers she gave for care were shocking, but it was also gross. Like a vulture.

I’ll get what I get but I plan based on my income. Extra $$ would go for extras (beach house, kids grad schools and grandkid education, donations, etc.). If something happens and not a penny comes, not a problem at all.

Don't count your chickens before they're hatched.

End of life care can be extraordinarily expensive and deplete that nest egg fast.

Anonymous wrote:Nope. You don't know what can happen.

THIS!!! My cousins (my parents' generation) had well over $20M decades ago. Their three children all expected to inherit it. Then their dad died and their mom got a new boyfriend. She cut off her kids and is leaving the money to him. Completely unexpected and my cousins (the three grown kids) had all based their lives around getting this money.

Your parents could also lose the investments, have long-term elder care needs that can zap through a big chunk, or anything else that could change a person's fortune.

Anonymous wrote:What does "expect" even mean? The only guarantees in life is tax and death. I don't know how you would "expect" something when the person is not even dead yet.

It’s not mostly traditional inheritance, it’s a multi generational trust. I can access it now, but we don’t access it for “fun” stuff in general. But if I turn out to need memory care or live to 105, etc - it’s there. Or if we have a kid with special needs, etc. It’s like a big safety net. It definitely changes how we approach saving.

Anonymous wrote:I feel like no one answering here is actually in a true position of inheriting real money. My parents are roughly 20M net worth and it will only grow as it is invested. They couldn’t spend down the principle if they tried. Of course, I am counting on inheriting a large amount in my due time, it would be foolish to plan otherwise. We save the minimum in retirement but otherwise aren’t worried about it in the slightest. We have other worries but money isn’t one of them. I know we will be just fine in retirement.

I’m in a similar boat and changed careers and save a lot less in retirement accounts. I’m not on the “normal” DCUM life path, it’s okay.

Anonymous wrote:Nope. You don't know what can happen.

This

What does "expect" even mean? The only guarantees in life is tax and death. I don't know how you would "expect" something when the person is not even dead yet.

Anonymous wrote:I feel like no one answering here is actually in a true position of inheriting real money. My parents are roughly 20M net worth and it will only grow as it is invested. They couldn’t spend down the principle if they tried. Of course, I am counting on inheriting a large amount in my due time, it would be foolish to plan otherwise. We save the minimum in retirement but otherwise aren’t worried about it in the slightest. We have other worries but money isn’t one of them. I know we will be just fine in retirement.

My in-laws are worth the same and barely spend more than their social security (and are happy!) DH and I have $3M saved at 40 excluding home equity. I try to tell him we can back off our taxable investments and just do 401k/IRA but he won’t. I also tell him we should enjoy things more now but he won’t. He wants to leave a lot when we die…

I’ll play. Expect to inherit about $5m. We still fully max 401k plus save extra. We do not count on that money coming to us. Elder care is very expensive.