My parents have $6 million in the stock market and I anticipate on inheriting half of it - how do I factor this into my retirement plans? - Understanding the Factors of Production: Key Elements in Finance

Có thể bạn quan tâm

Personal Finance

Published: December 16, 2024 9:19 pm

Bạn đang xem: My parents have $6 million in the stock market and I anticipate on inheriting half of it – how do I factor this into my retirement plans?

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

24/7 Wall St. Key Points

Inheritance can be easy to rely upon, but it is never certain. It’s best to approach it as a bonus, not as the bulk of your financial plans.

Long-term care insurance can offset major healthcare costs, but it often doesn’t cover everything. This potential cost, combined with fluctuations in the stock market, can quickly eat away at an inheritance.

Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

I recently came across a Reddit post that sparked some questions about inheritance and financial planning. The Redditor posed a question about factoring future inheritance into their early retirement plans.

Generally, it’s recommended that no one plans on an inheritance until it is in their bank account. There are simply too many factors involved, and no one can see the future. However, the Redditor was wondering if their situation was different, as their parts are both in their 80s.

Here are some of my thoughts on that. Remember, this is just my opinion and shouldn’t be counted as financial advice:

1. Long-Term Care is Expensive

Long-term care is extremely expensive, and it tends to eat up inheritance promises. However, the Redditor reported that both of their parents have good long-term care insurance. With their $6M stock portfolio, the Redditor anticipates inheriting ~$3M if it were divided between themselves and their sibling today.

Xem thêm : Couple’s Retirement Plan Includes Restoring Abandoned House in Japan

Of course, we don’t know how long their parents will live and how much of that inheritance will be left, but it is a sizable nest egg.

The fact that the parents have long-term care insurance may offset major healthcare costs in the future. However, it probably won’t cover everything, and healthcare expenses can still impact the estate value. While this insurance reduces the risk of significant depletion to the inheritance, it doesn’t protect it completely by any means.

We absolutely recommend long-term care insurance but don’t rely on it solely for healthcare costs.

2. Inheritance is Always Uncertain

It’s easy to make financial plans based on someone else’s work. However, inheritance is always uncertain due to market fluctuations, healthcare expenses, and changes in the financial needs of the parents.

While it’s understandable to view it as a potential future resource, planning solely based on an inheritance for financial independence can be risky.

3. Approach Inheritance as a Bonus

Instead of planning explicitly for an inheritance, I recommend approaching it more as a bonus. You shouldn’t plan for it, and you should absolutely be able to reach your financial goals without it. However, if it does happen, it can be a nice boost to your plans.

Simply put, you should focus on building a core plan that functions without an inheritance.

Want to Retire Early? Start Here ^(Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Xem thêm : Fourth Circuit judge reverses retirement plans, preventing Trump from naming replacement • NC Newsline
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on 247wallst.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

Nguồn: https://factorsofproduction.shop
Danh mục: News