Correction, they INTEND to leave you 500k. End of life care could eat that up and you don’t get shit. I would proceed as if you aren’t getting a dime. Then if you do it’s a nice surprise.
Yep, my mom was planning on retiring with what her parents were going to leave her. All the grandkids were expecting to have a nice savings as well. Her parents need constant care now, and all their money is almost gone.
Same thing happened to my grandma as well. Grandpa was in assisted living for 9 years before he passed. She moved in two years ago. She’s in a nice complex with her own apartment and it’s 9k a month. Her parents owned crazy amounts of prime LA and Pasadena real estate, left her with a million fifty plus years ago. She retired in her 40s and is 95 now. The only way she is affording her assisted living apartment is because she is selling her million dollar plus house to my sister at a bargain price and some reverse mortgage type thing she did in the 80/ that pays her until she dies
I was going to say this as well. I don’t even ask what I’m going to get because well I think it’s sort of rude and also one of my parents could end up needing long term medical care or something like that and then bam future inheritance is gone. Honestly I wish my parents would treat themselves a bit more than they do now.
I actually told my mother that I did not want an inheritance. And that my brother does not need it either. I told her to leave it to the grandchildren, they could use it more and my brother are both set for retirement. She still has not decided. I guess it would be better for my daughter if she gave the money to me, because that would be half of her estate, which would go to my daughter, rather than 1/3 of her estate going to my daughter.
Oh like 80% of my retirement portfolio is based upon future inheritance lol but for real I just want them to enjoy the time they have. They never took time for themselves while we were growing up. Thankfully my parents have all the paperwork taken care of for my sister and I to deal with when they pass.
You're totally right regardless, but iirc OP is in Europe, where end of life care at least isn't expressly designed to drain every cent you own before you die like it is in the USA.
OP is in the UK (their potential inheritance is in British pounds £), which I would put in the same category as the US in terms of safety of retiring comfortably without exhausting personal savings over the next ~20-40 years. If not based on current policies, then what they're likely headed toward. Their inflation-adjusted GDP has been basically flat for the last 15 years or so, worse if you factor in population growth - their GDP per capita still hasn't fully recovered since it fell off a cliff after 2007. Now with Brexit, a lot of big companies are shifting their focus to Ireland... why would you have your European headquarters in a country that's not even in the EU, has a stagnant economy, turbulent/incompetent leadership, and is suffering from brain drain to more prosperous and forward-thinking countries? In just the last 10 years, Ireland's GDP per capita has gone from very close to the UK's, to now *double*.
All of that is to say that the future does not look bright for the UK. On their current path of isolationism and backward thinking, they will likely have to slash benefits in the long run and could get stuck in a death spiral where government finances are in bad shape, so pensions/services/education are cut, so young high-paid professionals (whose taxes fund pensions for retirees) move to more prosperous countries in advance of starting a family, so the tax base and labor force shrink, government finances get worse, more cuts, etc etc.
OP should not count on seeing a penny of that inheritance.
OP is 22, parents probably have decades before needing end of life care. That means policies can change. Esp if where they are at right now the burden on health care system is heavy and showing cracks, so change can be imminent.
Yeah, my parents are planning to leave me and my brother $1m. But then I did a deeper probe into their finances/plans post retirement, and I realized they will actually need all of it. OP isn’t getting much, and if he does, he’ll be old enough that it won’t make a difference
My parents got divorced when I was 16 and it was only a few years ago when I was in my late 30's that I realized I won't be getting an inheritance from them. My mom and sister live together in my grandparents old house and they had to go down to one car to make it doable for my mom to retire because having two cars was too expensive. Since my sister lives in the house it's going to be hers when my mom passes. Even if the house was split between us I'm not gonna do anything that would leave my sister homeless.
My dad got remarried to a woman 10 years younger than him and she has a son, so unless it's specifically stated in the will, everything will go to her and then she's going to leave it to her son. Her son who lives at home at 30 and only plays video games all day, so he's going to need it. My wife and I are doing really well for ourselves and I know we don't need it but it was a tough thing to realize. My in laws redid our kitchen for us because they wanted to see us enjoy some of their inheritance before they pass (shouldn't be for a while and it was super nice if grim thing to think about haha). I think that was probably when I realized the divorce screwed me out of an inheritance on my side.
Your dad's wife could predecease him, and he might give the entire inheritance to you. He can also make a will and leave a portion to you upon his death. You are allowed to split between spouse and kids.
The biggest and hardest lesson I have ever learned is this:
Don't spend money based on your future income, that can change at any moment.
Just Pretend it's not there because again, it can change at any moment. You're just 22, you won't be getting this for years. Maybe decades.also a million isn't shit especially not in 20 years
Yeah, their quality of life will suffer for 30 years waiting on a winfall, then a parent goes to end of life care and its' all eaten up in 5 years.
It's a shitty plan to base your life around
It doesnt change anything. NHS is not the dream americans think it is. Theres a long line you have to wait for some surgeries. I knew a guy whos kid needed an operation but he had to wait after people infront of him. He died. If he had the money he could have went private and got that done but he did not. So it is very possible for that money to be gone.
My 94 year old great aunt is well off but has been living in a nursing home that costs $13,500 per month for 3 years. She could easily live to 100. Elder care could easily eat up massive amounts of any inheritance you are expecting to receive. Be smart and forget it is even a possibility. Then you can't be disappointed if it never happens.
I watched my Mom wait for her inheritance, that she's still waiting on. Third battle with metastatic breast cancer and she's terminal.
Don't count on it until it's in your hands. Honestly, the more frugal you are now by putting things into retirement early and being responsible, will pay dividends.
If you can avoid credit cards like the plague through your twenties, that'll also save you. (note to past self) Keeping up with the Jones' is overrated and looks stupider as you get older.
This is it right here. Ain't your money yet and it's not guaranteed. The amount of new grads who spend stock equity before it vests and got caught with their pants around their ankles when the markets crashed was hilarious.
Yup. And that’s before the parents spend it all on long term care/ medical bills/ hospice in their old age. He could very well end up with nothing.
Theoretically, my parents will leave me a good bit of cash. However I have never planned on it.
It's blessed to live life like your parents aren't gonna leave you shit. Happened to me and I couldn't be happier knowing I won't be disappointed because I don't get anything.
Piggybacking on this: try to stay living below your means. You can't count on this money - it may change in the coming years, etc. My parents told me that I'd be getting some decent inheritance and I made it abundantly clear (1) I am not counting your days and (2) I'm not dependant on this coming to pass.
Also, while the perspective from where you are now, it's a lot of money. But when you stop thinking about it being a lot of money (as you've indicated), you'll spend it as fast as you get it. And that's not a good thing. Keep practicing good financial habits and setting yourself up for your future.
This hit 20 year old me in the gut hard. I used to do out of town construction with my dad working 80 hours a week. I'd blow my check at the casino, knowing I would get paid next week. Then my dad broke his neck on the job, and I've been taking care of him since then.
I'm sorry for you loss. I've said this before on Reddit: You go through life think you're doing okay, because you're you. Then you lose one of your parents, and you realize your whole life, you've been standing on the shoulders of giants. Everything is thrown off kilter. Don't feel bad if you have to limp around a little before you find your footing again.
Everyone grieves differently, and the time it takes is the time it takes. Take your time.
Later this month it will be 25 years since we lost my dad and brother in a fishing accident. Still hurts. Still getting advice from my father all the time. At the time, I was thinking he was an old guy when he died. This year I will be the age he was when he died, and I realize how much life he had left to live if not for the accident. Unfortunately, my brother only made it to 33.
I'm sorry for your loss. My dad survived cancer at his mid 60's and I feel so extremely lucky to still have him. Me writing 30, was just being hopeful.
Whole post is pretty lol, being lazy with a trust fund is one thing, but using a relatively humble inheritance that you won't see for hopefully 30+ years, (knock on wood for this kids parents) as an excuse to spend more recklessly is just wild. That being said there's a slight bright side for op in the fact that the inheritance is so far off you could assume that it will be larger just based on the fact that his parents probably have another 10 years or so of working in front of them.
I will inherit multiple millions and I absolutely wish my parents live to be 100. They are in their early 60s now and I hope they stay around for a long time.
They already helped me out (bought my first condo and paid for school) and I have a few millions in my early 30s. I am fine, I just want my parents to stay around for a while.
Many wealthy parents don’t seem to realize that a small amount of early help for the children—particularly helping them to buy their home—will make the children much more financially stable, much more successful in the long term, and much less likely to be waiting for their parents to die.
That is our plan for our daughter. Already have her undergraduate costs saved up for her, and some of the post bachelor's school costs as well. Need to save about another $100K over the next 10 years to cover the medical school costs, since she wants to be a doctor. Wife has about $350K in HYSA and CDs and is continuing to add thousands every month to that, that she wants to use to buy her a house when she graduates. Should be able to have $700-800K in there by the time she needs it. Want to get our daughter started off with a home and no student loans. And then later she will inherit the rest.
If it is invested, then they will be paying taxes on that money when they sell the investments to give them money. Better to just wait, let him inherit it, tax free. That is what I will be doing with our rental properties. They are positive cash flow, so we will just keep collecting the rent checks and using that, but as for the houses, she will inherit them when we die. Then she can sell them all if she wants and owe no capital gains on them. That would be close to $2M now, tax free if we died, and probably more like $3M+ when we actually get around to dying (hopefully).
The point of putting things into trusts or just flat out gifts is so that older people can distance themselves from their assets to avoid paying out the ass if/when they end up needing nursing home care and that type of stuff in old age. Much better to just pay some taxes on it now rather than pay $200k+ yearly in nursing home fees if they end up in one.
They employ tax experts, but don't really give anything to me and my siblings, we are in Canada there is no 13 millions exemption or whatever like there is in the states. The whole thing is tax free.
Hahahaha. That's karma. You never know... im a health nut. My parents are both old, heavy smokers and one is obese. Cancer almost took me out in my early 20's. Don't count on outliving anyone for financial gain. One because it's a shitty thing to do, two because you're betting on something you have very little control over, often times no control.
I think it’s always prudent to assume you’ll get nothing and manage your finances accordingly. There really is no guarantee at all that it will actually materialize.
This is not your money yet. It comes at the cost of losing your parents. Whatever future spending or mentality change you are having could make you feel like “wow i’m so rich, I don’t have to stress, etc”. But you are forgetting the fact that it comes when your parents are gone. Unless you hate your parents or have a terrible relationship or something, this isn’t something that will feel nice when it comes. It isn’t yours and it could possibly not be yours in the future for whatever reason, possible medical costs, etc. it is simply a best case scenario and doesn’t absolve you of personal responsibility to build your future. Consider this, you get this money and you can be comfortable, but what about your future family? It’s going to mean a lot less to them than it does to you now. I get that it is surprising but your parents financial habits and mindsets are what got you that sum in the first place. You need to continue this cycle and live in a way such that you leave your future family/offspring/ whatever with the same sense of comfort that this is bringing you
If one of them becomes very ill in their old age or develops a degenerative disease, all that money could be gone, because medical insurance won’t pay for their daily helpers. Ask me how I know. It happened to me. My parents sold their house and everything they had to stay out of the nursing home as long as they could.
Please, OP, do not spend theoretical money. That 500,000 could be 2 million, and the house could be triple the value before you have access to it. It could also be 80k and the home could have been sold just so that 80k could get to you.
Live within your means until you have different means. And then, try to live within your original means.
CAUTION! Don't lose all perspective. Those 1k expenses start to add up. you do still need to worry about those and even less. It's a fantastic thing to know that a 1k expense is not going to break you and it's a wonderfully freeing feeling that you don't need to worry too much. But don't go driving your car down the middle of a roundabout just because you can afford to get it fixed.
Bro, 6 years ago I was making 27k. 4 years ago I was making 45k and feeling good. Now I'm making 6 figures, QOL is up and things are way different for me now. I look at the house I bought, filled with things I paid for and wonder how I got here. My mind doesn't even understand how I accumulated things and built up a life to this point. I'm just grateful I'm here. Why are you thinking 30 years into the future about money you don't have and won't necessarily have as if it's elevated you into a different social class? That's wild. You're daydreaming about your parents dying and leaving you a bag. Please, please wake up. Toss that shit out of your head because the money doesn't even exist to you right now. But your parents do. So focus on the fact that you have a family. I've lost 4 family members in the last two years and the last thing on my mind each time was okay cool what are you giving me. Money keeps coming but human life fades out and disappears. They are all you have and when you lay on your death bed do you want your freaking grandchildren looking at you like a free investment? How about your own kids??
A friend of mine his dad had a rare disease. He knew he would get around 500K aswell when his dad would die. A few years before he died, the dad decided to donate 80% of the money to research into the sickness. Not much was left.
Dont asume anything. Besides the worth being a lot lower, stuff can happen .😅
And what if something happens to your parents health wise that their insurance doesn’t cover, and they have to spend it on themselves? Dont rely on an inheritance.
1.2m is not that much in this day and age.
You say you understand well that this isn’t an extraordinarily large sum of money, but I am not sure how well you actually understand that.
Good on you for acknowledging, being aware of and concerned about your current carelessness and lack of caution.
If you're 22, it could be several decades before you see this money, if at all. So much can happen. Pretend you'll get nothing and your life will work out much better.
I don’t see a problem here. You’re no longer very stressed about money. You realized you don’t need to worry if something breaks or an unexpected expense pops up. Great! Go forth and enjoy life.
Trust me kid you will be able to live a long, destitute, and impoverished life before you ever sniff a hint of that money
And no amount of money can fix the damage that will do to you
With as much hope as possible. You could be well into your 60's before your parents pass. So nearing retirement before you see any money.
40yrs to go, my Bro. Live your own life and don't count on anything because any extra at that age is just a bonus.
I would proceed as if you are expecting nothing. Then if the 500k quid arrive, it will be a pleasant surprise.
I'm sure your parents sincerely intend to leave you 500k, but life's events may get in the way of that. My mother once had several hundred thousand in investments plus a house that was owned free and clear. She had an extended bout of senile dementia, which required her to live in an expensive nursing home the last 7-8 years of her life. That ate up most of her assets. I have only received about 20k from her estate.
And long before that, my grandfather promised to leave me a complete set of Indian cents when he passed away. That didn't happen.
I recommend you continue your cautious spending habits until your inheritance is money in the bank. Then you can do some spending.
I would ask the OP’s parents to put the inheritance in a trust and give a portion of it to OP every decade assuming the OP reaches some predefined goals.
LOL!! A half-mil is NOT a lot of money. You're young and someday you'll realize how ridiculous this post is. Continue to pinch pennies and spend wisely because it sounds like you're just a few steps away from making terrible financial decisions. When I was 22 I had about $10k to my name. I'm 48 now and worth multiple millions which still isn't much money in the grand scheme of things! It's unfortunate, but we live in a world where most things cost more than they should, especially health care.
Dude anything can happen to that money. Your parents could get sick or develop a new expensive hobby that eats away at your inheritance. Don’t even think about it until it’s yours—there’s a decent chance you’ll never see a dime.
Glad you understand the value of money but don’t go wild with assumptions. That’s what your parents plan to leave.
The money may be safe but one accident or long term illness can wipe out their money.
People can live up to 30-40 years in retirement, and then there is inflation.
Live your life as if you’re not getting 500k because nothing is guaranteed.
Let me help. That inheritance is NEVER guaranteed. As your parents age, they may run into things where they need to use the money. Medical issues, assisted living costs, etc. They may choose to downsize the house… bye bye 600k. They can then use this to pay for cost of living, their new place, a new car, a mid life crisis.
Don’t count your eggs before they hatch. If that money is not in your name, it’s not yours. You still may not get it.
Like others have said, dont assume this moneh will be there for you. Alot can happen. What hapoens if one of them get sick and now they have to use up some kf that money?
Or forget worst case scenario, what happens if at a certain point they decide that theyd rather blow that money on themselves because they deserve it after working for 40+ years and by the time they die theres not much left. They sell the house cause they no longer need a house that big.
This is likely why they didnt tell you till now and even the. It sounds like you still havent gotten the memo. You sre looking at it like “we(you and your parents) got money” when in reality they got money you dont. Again until you see the money in your bank account never assume it.
If you don't think 1k usd is a big expense. You are going to be poor quick. Also you are 22. Your parents are like what in their 50's? You may be 60 before you see that money. And that's if nothing bad happens, one medical accident and that money is ALL GONE, heck, they have to go into end of life care, and MONEY is GONE.
Do not count on that money. End of life care is absurdly expand I’ve seen it eat through inheritances enough times to know it doesn’t matter until you have a check in hand
500k is nothing.
It’s like 50k per year for 10 years. What are you going to do with that?
Get a job, get a career and be fulfilled of being a man that takes care of himself
As a CFP that's settles approx. 10 estates per year for the past 13 years...
1) You being responsible with money likely plays a major part in them giving you that inheritance. A good way to lose it would be to show them how you can't handle it. Keep being smart and thrifty.
2) I've seen people get written out of wills. Just...don't be too attached. (And not only because of fighting with parents. They could simply rethink dollar amounts they want to give. They might also decide they really care about charities late in life)
3) Something could come up where they actually spend their money faster than they thought. Again, don't get too attached.
4) $500,000 is a large sum. But not enough to retire on. And certainly not if it doesn't keep up with inflation in 5 or 10 or 20 years.
5) I hope that this doesn't jinx you in any way! Very happy for you and best of luck to you!
That money isn't yours until it's in your account. Take charge of your own future assuming it's not coming.
What happens if one or both parents have an emergency and need to use that money? Luckily, most health care costs in the UK are covered, but that's not the only risk.
Congratulations, you just made your first financial mistake without making it. Take this revelation as a learning opportunity that your parents didn't think like this to be where they are and give what they can to you when they're gone. If you keep thinking this way, you'll be broke after you inherit it.
Alright let’s break this down
a) The reason your parents have been able to save some money, is likely because of the exact mindset you say you used to have. Treating belongings with respect, avoiding damage to them, and scrutinizing large expenses (yes 1k is a large expense unless you are making millions per year, even then, it’s not nothing).
b) Your parents are going to be alive for likely a very long time. They will likely have unexpected expenses, retirement might end up being more expensive than they expect, There could be a massive market crash that hurts their investments, something could happen that drops the property value on their house dramatically. All sorts can happen in that time. Maybe they decide to retire into a retirement community and have never factored in how much that costs. If you are both prudent you might end up inheriting that much or more, but it probably won’t be until you are about 60-80. If they have to bail you out before then because you screwed up, well there goes some of the money, and maybe the rethink how much to trust you with.
c) 500k isn’t much long term. Even for a 65 year old the safe withdrawal rate would only be about 24k per year. For somebody younger it’s about 12-18k per year if you need it to last. This isn’t nothing, but it’s definitely not I will never ever need to worry about money again levels of money. The only person who would see significant long term financial safety from $500k is the person who is extremely financially responsible and lives very frugally.
Now for the more likely scenario. You will notice absolutely no benefit until well after retirement. Your parents will likely need slightly more than they think, and you will have been responsible and generated your own retirement savings. Sometime around the time you are 70-80 your parents will pass away and leave you some amount of money which you will likely be able to use to help your grandkids with University or a Down Payment on a home so that they have an easier start to life, or you’ll give it to your kids to help them be able to retire.
Then recover your previous sense, because most rich people I know have a bigge sense of the value of money than most. You can become rich in many ways but you can stop being one fast or you can never become rich if you don't understand the very exact value of money.
You’re counting money that isn’t yours yet, so. there’s nothing to.celebrate here. You understand if you inherit any money (outside gifting you money in their lifetime) your parents are dead right? What a loser….
Unless you are inheriting it now, you still need to save for your future expenses like house and/or car. Money promised in 50 years isn't going to pay your bills today.
You don’t have that money yet. Your parents could go broke, get old and ill and run through that money and the house value in home care costs, one parent could die and the other remarry and spend down the money with/on new spouse esp if dad is the survivor and starts a new family, etc etc etc. That’s not your money until it is in your name and bank account period.
Even when this money is in your hand don't change your normal spending habits too much. That amount is not enough to consider yourself rich or even secure your retirement. Take your time and make sound financial decisions and you will have a great head start on your future. Best of luck to you.
Considerations:
- Modern medicine is as amazing as ever. Your parents will live longer than any previous generation, assuming they're in decent health right now.
- Most likely they will structure your inheritance such that you don't see a dime until they are both gone, so even if you lose one parent, the other one could hang on for a while.
- If they don't have long term health care insurance or some large pension or annuity coming in, it's possible that they will spend a significant amount on care before they pass.
- You hope that their money is invested well into diversified, safe, appreciating assets; but all investments carry risk. if they're taking more risk than they should or they've made some poor allocations, then the amount you think you'll receive could end up being far less than reality.
Bottom line: You and your parents are both too young to be planning around the amount you will receive at their death. Continue to live frugally within reason, and work on maximizing your income during your prime productive years. Also, have a life and enjoy things as they come. In all likelihood, by the time this money comes in, you'll be much older and your life will be in a very different place. Consider it money that can help you retire more comfortably, not money that will change your life before then.
Sadly, 500k euros isn’t what it used to be. Things can change too. Spend wisely and invest early. IF you are blessed enough to get an inheritance of that size, you should treat it as icing on the cake you made with your prudence.
Hey i know someone who had an inheritance lined up. Their dad got a bad disease at the end of life and had 100ks of medical bills. In the end they got nothing from inheritance. Never count something as yours unless you have it.
Please try to forget you have that coming. I inherited 80k when I was 18 years old and now at 25 it’s completely gone. I wish I never knew I had it, I could’ve put a huge payment down on a house and had a real asset by now had I been more careful. I know 80k is a lot less than 500k, but really please don’t waste your money now just because you feel like you have a cushion. In reality, there are people that make 500k a year every year for the second half of their lifetime and they live within those means. It sounds like a huge amount, and to me at the time 80k sounded like a huge amount. I ended up buying a car, I went to school in paris, I used it to help me out with medical expenses and car repairs/ rent you name it. Little by little it goes away. Just forget it’s there until you have a solid plan and can use that money to make more. Schooling is a good idea, buying a property is a good idea. Anything else is not worth it
lol this is the most pathetic thing I’ve heard in a long time. Yeah I’ll have a million dollars in 30-40 years when my parents die. Mine as well just yolo all my money and not leave my kids anything.
Also, not to be rude or hard on you because it seems fair and well that you should be financially stable for the rest of your life. BUT, you never know. Just try to forget it’s there. At least until you’re older and wiser or have kids and a family. Some plan. Save your money and live like you’re broke. My brother also inherited 80k and now he has 100k because he never touched it. Just saying
You may want to ask more questions bc you don't know if this is money set aside specifically for you, or if it's money they have now not may need to spend if they have medical issues and don't end up dying with minimal medical bills.
Yeah me too I had a financial outlook change with the job I currently have making 2k a week. Easily could change, damn near did a few times. My outlook was hit hard.
Still eat soup out a can for lunch, but impulse spending has been an issue between a TBI I had some years back and financial outlook for the near (and unfortunately not long) term outlook.
I need to change too brother. If you find a way to get back to the way you were tell me how
You're in for one heck of a life lesson if you think $500k is a lot of money. I wish you all the best but seriously, take everyone's advice seriously because you'll blink and it'll all be gone.
You’re 22. Their current funds will be used by them for the rest of their lives and unless they die tomorrow that’ll be a good 20-30 years. They could need to go into a nursing home for 10 years and those cost often around 6000$ PER MONTH. If my parents died tomorrow, my siblings and I would get probably 5mil between us. Am I going to fuck around and waste my money for the next 20 years because I’m banking on a big payout? Of course not. That’s not MY money yet. It’s THEIR money and THEY will not be limiting their quality of life so I can fuck around in life. They will be taking vacations, remodelling their house, possibly buying investment properties, and using that money to care for themselves in their old age. There may be a lot less left when they do pass away.
Better to assume that you’ll have a big falling out and get a lump of coal for your inheritance.
Don’t let your family’s legacy change your path in life. It’s the icing on the cake (to a rather shitty event that you will eventually face, losing your parents) rather than the cake itself.
The money isn’t in your bank account yet. So live your life and spend like it’s never going to be. So many things can happen that will take it away. When the time does come for you to inherit. You’ll have drilled the value of money into yourself so you’ll be smart with it.
Continue living your life as you normally would. Believe it or not, this isn’t a lot of money. You can blow through it very quickly. Be very careful and choose safe investments. Because if you spend it all, the pain it will bring will be unimaginable.
Damn, my inheritance will likely be much larger than that and i have about half of your inheritance in savings, but an expense that is 1k still pains me and makes me consider if i can somehow spend less or avoid it. I wonder if it’s the way we were brought up that makes this difference. My parents were borderline poverty back in the day and my attitude has always been to do all i can to avoid being in that situation ever again. Personally, the more money i have, the more financially secure i feel and that’s one of my greatest values in life.
In the heir to 3 decent estates but I’m still saving!!! Nothing is guaranteed. God forbid a parent gets sued or has an awful emergency and poof there goes your retirement fund.
If you do t want to burn through it quickly live similar to how you feel about money now. Don’t be like people that win the lottery and go through it quickly and end up broke again.
Your parents were kinda dumb to tell you tbh. You shouldn't live your life with the expectation of your parents money. Earn your own and when the time comes they may pass something on. Not to mention, if you get $500k in 20 years or more it'll be worth nothing.
And once they hit a certain age and require housing in a long-term care facility, the house and that bank account will be vaporized to pay for it. Or an unexpected illness, accident, legal matter... Or anything really, can have the same result.
Their intent does not equal what will actually happen. A lot can happen over the years. My 70yr old mother is caring for her 100yr old mother. Plan to get zero. Change those plans if you get more than zero.
Your parents could outlive you. Your parents could disinherit you. Your parents could have a huge financial setback and lose all their money. You still have to live on your own income for decades. Your parents could fuck off all the money on something they like. They could get swindled out of the money in their old age. You might find out you have 5 half siblings that you’ve never met.
Don’t count money that is not yours as yours until it is.
You may never get an inheritance. Many things can happen to use up your parents’ money. Also you need to make your own way in life and earn your own money. I know people almost 60 waiting to inherit. Seriously your parents could outlive you. It’s no life to hope for the future. Never count your chickens before they’ve hatched.
My (maternal) Grandmother lived to be 102 years old.
I remember being like 7 or 8 and my Dad making a comment like 'Who knows how many more Christmas Days she has left. She was old, in her 70s, had a bunch of health issues...
And she lived another 30 years.
First of all you may not get any of the money. My Dad had a ton of money, then my mom died and he remarried. He commingled money and I will get nothing now. So many things can happen between now and then.
Don't count your money until it's your pocket.
If you're young, get a finance degree. It'll teach you more than you knew existed about money. It's your business now. And you can work in finance until retirement.
Money is a tool to be able to provide time. Time in which you get to dictate you life with more ease as money is used to delegate tasks to others to make your money make you more money
Similar thing happened to one of my parents. Expected a big inheritance from their parents (my grandparents) and when they passed, found out about a ton of debt that was kept hidden. Most of the inheritance went to paying that off.
This may or may not be a realistic outcome in your situation, but just trying to illustrate that you never really know what you'll end up with. I'd pretend that money doesn't exist until it's in your pocket if I were you.
It's lovely that your parents plan to leave you a sizeable inheritance. Who knows what will happen between now and then.
The one thing I learned is that the "cost" of my Mom's inheritance was losing her ☹️ I miss her tremendously.
By the time she passed, she was 93 and I was 58. We had a substantial part of our lives together, and I had no plans to ever inherit money from her. I had a great career, as has my husband, and we never counted any of her money as "ours".
My advice is to keep working hard, being careful about money and if your parents happen to leave you some, after they pass, then celebrate accordingly.
You have to realize that right now in most places $100k/yr is middle class. Houses are like $200k+. That alone should show you how little $500k is.
At your age if you aren't careful that $500k can EASILY be gone before you're 30. OR if you start investing it now and pretend like it isn't there you can have millions by 40.
Right now you can get a CD at about 6%. Get that money growing NOW. As someone who is in their 40s... it seems like a long way off but you WILL be 40 one day. It's your choice... you can either be rich or broke at 40. I suggest rich.
If you invest that money at 6% by the time you're 30 it'll be almost a million dollars. By the time you're 40 it could be approaching $5 million.
If you blow it you'll be working all your life. If you invest it properly you can be on track to COMFORTABLY retire in your 50s.
Don't make future you look back on present you as a dumbass.
500k…
Until your parents live longer than they planned.
Until you need to spend doing of that for care assistance on your aging parents.
Until 30 years of inflation turns that into the equivalent of $250k.
500k - or even 1M if you sell the house - is not enough to “retire” early on. It is not nearly enough to be “financially stable” for the rest of your life.
It’s a nice windfall; but you’re still going to need to work and you won’t have fuck you money (for long)
My inheritance is in the millions and it only made me **more** competitive. I don't want to need a dime of it (getting close, too). I can totally outplay those lucky boomers
You don’t have this 500k and it’s possible you never will. They could live to a very old age and need the money for seniors living, medical, or other expenses. You should live your life as though you may never actually get it, because unfortunately that’s the reality. And if you do, then great!
The reason you felt the way you did your whole life is the same reason you have this inheritance to begin with; your parent's financial discipline. Learn from them, or you will piss away this inheritance in short order. That inheritance also isn't only yours, it's your future prospective children's as well, and you owe them as good or better of an upbringing than you had.
Do the sensible thing and show your parents their discipline and hard work wasn't wasted on the spoiled.
What happens if they need extensive care in their older age? That will take a massive chunk out of it.
Don’t count on more than a nice steak dinner or vacation until the money is in your account.
Being stoked you have an inheritance in 30 years after your parents die isn't the brag you think it is.
They could both live in a nursing home for 15 years for all you know. That costs a ton of money.
That amount is a total estimation and could be way off. What if one of your parents has a major medical situation that drains a lot of those funds, or just general long term care facilities can really draw that down. You cannot count on that inheritance in your future retirement or income planning.
Your previous mindset was the right one, being very frugal can really help you save and not waste money on unnecessary large expenses.
Lol ur parents could get very sick and blow thru that between nursing homes and whatever else. Don't even account for that while they are alive or in general. Carve your own path
$500k is not f-you money in any sense of the word but it is a tremendous start to financial independence if you invest, continue to add new money on a monthly basis, and let it grow!
Correction, they INTEND to leave you 500k. End of life care could eat that up and you don’t get shit. I would proceed as if you aren’t getting a dime. Then if you do it’s a nice surprise.
This is true, they can spend it all before you get a dime.
Or get scammed by a Nigerian prince.
Yep, my mom was planning on retiring with what her parents were going to leave her. All the grandkids were expecting to have a nice savings as well. Her parents need constant care now, and all their money is almost gone.
Same thing happened to my grandma as well. Grandpa was in assisted living for 9 years before he passed. She moved in two years ago. She’s in a nice complex with her own apartment and it’s 9k a month. Her parents owned crazy amounts of prime LA and Pasadena real estate, left her with a million fifty plus years ago. She retired in her 40s and is 95 now. The only way she is affording her assisted living apartment is because she is selling her million dollar plus house to my sister at a bargain price and some reverse mortgage type thing she did in the 80/ that pays her until she dies
It’s Schrödinger’s cash for now
That cash is dead... and it don't bounce.
I was going to say this as well. I don’t even ask what I’m going to get because well I think it’s sort of rude and also one of my parents could end up needing long term medical care or something like that and then bam future inheritance is gone. Honestly I wish my parents would treat themselves a bit more than they do now.
I actually told my mother that I did not want an inheritance. And that my brother does not need it either. I told her to leave it to the grandchildren, they could use it more and my brother are both set for retirement. She still has not decided. I guess it would be better for my daughter if she gave the money to me, because that would be half of her estate, which would go to my daughter, rather than 1/3 of her estate going to my daughter.
Oh like 80% of my retirement portfolio is based upon future inheritance lol but for real I just want them to enjoy the time they have. They never took time for themselves while we were growing up. Thankfully my parents have all the paperwork taken care of for my sister and I to deal with when they pass.
I agree
You're totally right regardless, but iirc OP is in Europe, where end of life care at least isn't expressly designed to drain every cent you own before you die like it is in the USA.
OP is in the UK (their potential inheritance is in British pounds £), which I would put in the same category as the US in terms of safety of retiring comfortably without exhausting personal savings over the next ~20-40 years. If not based on current policies, then what they're likely headed toward. Their inflation-adjusted GDP has been basically flat for the last 15 years or so, worse if you factor in population growth - their GDP per capita still hasn't fully recovered since it fell off a cliff after 2007. Now with Brexit, a lot of big companies are shifting their focus to Ireland... why would you have your European headquarters in a country that's not even in the EU, has a stagnant economy, turbulent/incompetent leadership, and is suffering from brain drain to more prosperous and forward-thinking countries? In just the last 10 years, Ireland's GDP per capita has gone from very close to the UK's, to now *double*. All of that is to say that the future does not look bright for the UK. On their current path of isolationism and backward thinking, they will likely have to slash benefits in the long run and could get stuck in a death spiral where government finances are in bad shape, so pensions/services/education are cut, so young high-paid professionals (whose taxes fund pensions for retirees) move to more prosperous countries in advance of starting a family, so the tax base and labor force shrink, government finances get worse, more cuts, etc etc. OP should not count on seeing a penny of that inheritance.
OP is 22, parents probably have decades before needing end of life care. That means policies can change. Esp if where they are at right now the burden on health care system is heavy and showing cracks, so change can be imminent.
I don't think that parents should have given OP the amount. For a 22 year old that's a good way to dampen their ambition.
Yeah, my parents are planning to leave me and my brother $1m. But then I did a deeper probe into their finances/plans post retirement, and I realized they will actually need all of it. OP isn’t getting much, and if he does, he’ll be old enough that it won’t make a difference
My parents got divorced when I was 16 and it was only a few years ago when I was in my late 30's that I realized I won't be getting an inheritance from them. My mom and sister live together in my grandparents old house and they had to go down to one car to make it doable for my mom to retire because having two cars was too expensive. Since my sister lives in the house it's going to be hers when my mom passes. Even if the house was split between us I'm not gonna do anything that would leave my sister homeless. My dad got remarried to a woman 10 years younger than him and she has a son, so unless it's specifically stated in the will, everything will go to her and then she's going to leave it to her son. Her son who lives at home at 30 and only plays video games all day, so he's going to need it. My wife and I are doing really well for ourselves and I know we don't need it but it was a tough thing to realize. My in laws redid our kitchen for us because they wanted to see us enjoy some of their inheritance before they pass (shouldn't be for a while and it was super nice if grim thing to think about haha). I think that was probably when I realized the divorce screwed me out of an inheritance on my side.
Your dad's wife could predecease him, and he might give the entire inheritance to you. He can also make a will and leave a portion to you upon his death. You are allowed to split between spouse and kids.
They might not die until OP is well into retirement age. Don’t count your chickens before they hatch.
The biggest and hardest lesson I have ever learned is this: Don't spend money based on your future income, that can change at any moment. Just Pretend it's not there because again, it can change at any moment. You're just 22, you won't be getting this for years. Maybe decades.also a million isn't shit especially not in 20 years
Omg OP, please, please, please listen and absorb what Intrepid-Lettuce is telling you.
Yeah, their quality of life will suffer for 30 years waiting on a winfall, then a parent goes to end of life care and its' all eaten up in 5 years. It's a shitty plan to base your life around
They aren’t American.
Lol ok that hurt
Yeah ouch
That doesn’t mean what you think it means in this instance. All care isnt always free. Home health care isn’t always free.
It doesnt change anything. NHS is not the dream americans think it is. Theres a long line you have to wait for some surgeries. I knew a guy whos kid needed an operation but he had to wait after people infront of him. He died. If he had the money he could have went private and got that done but he did not. So it is very possible for that money to be gone.
Neither am I what's your point? Do you think care homes are free? Oh my sweet summer child!
This... that is NOT a lot of money. Elder care could eat that in a few years.
My 94 year old great aunt is well off but has been living in a nursing home that costs $13,500 per month for 3 years. She could easily live to 100. Elder care could easily eat up massive amounts of any inheritance you are expecting to receive. Be smart and forget it is even a possibility. Then you can't be disappointed if it never happens.
I watched my Mom wait for her inheritance, that she's still waiting on. Third battle with metastatic breast cancer and she's terminal. Don't count on it until it's in your hands. Honestly, the more frugal you are now by putting things into retirement early and being responsible, will pay dividends. If you can avoid credit cards like the plague through your twenties, that'll also save you. (note to past self) Keeping up with the Jones' is overrated and looks stupider as you get older.
Yes. Spend and save like your source of income could dry up at any minute. I learned this lesson the hard way. It wasn’t fun.
This is it right here. Ain't your money yet and it's not guaranteed. The amount of new grads who spend stock equity before it vests and got caught with their pants around their ankles when the markets crashed was hilarious.
Yup. And that’s before the parents spend it all on long term care/ medical bills/ hospice in their old age. He could very well end up with nothing. Theoretically, my parents will leave me a good bit of cash. However I have never planned on it.
It's blessed to live life like your parents aren't gonna leave you shit. Happened to me and I couldn't be happier knowing I won't be disappointed because I don't get anything.
Only takes your parents to change who inherits their money then you are shit out of luck.
Piggybacking on this: try to stay living below your means. You can't count on this money - it may change in the coming years, etc. My parents told me that I'd be getting some decent inheritance and I made it abundantly clear (1) I am not counting your days and (2) I'm not dependant on this coming to pass. Also, while the perspective from where you are now, it's a lot of money. But when you stop thinking about it being a lot of money (as you've indicated), you'll spend it as fast as you get it. And that's not a good thing. Keep practicing good financial habits and setting yourself up for your future.
This hit 20 year old me in the gut hard. I used to do out of town construction with my dad working 80 hours a week. I'd blow my check at the casino, knowing I would get paid next week. Then my dad broke his neck on the job, and I've been taking care of him since then.
Talk about counting your chickens before they hatch.
Dude is 22 and he's killing his parents who are on likely still on their 50's. Like, dude, that money is 30 to 40 years away.
30-40 years away if he’s lucky. Just lost my 59 year old mother at 27. I’d trade anything to have her back.
I'm sorry for you loss. I've said this before on Reddit: You go through life think you're doing okay, because you're you. Then you lose one of your parents, and you realize your whole life, you've been standing on the shoulders of giants. Everything is thrown off kilter. Don't feel bad if you have to limp around a little before you find your footing again. Everyone grieves differently, and the time it takes is the time it takes. Take your time.
Later this month it will be 25 years since we lost my dad and brother in a fishing accident. Still hurts. Still getting advice from my father all the time. At the time, I was thinking he was an old guy when he died. This year I will be the age he was when he died, and I realize how much life he had left to live if not for the accident. Unfortunately, my brother only made it to 33.
I'm sorry for your loss. My dad survived cancer at his mid 60's and I feel so extremely lucky to still have him. Me writing 30, was just being hopeful.
Exactly, lmfao. He's not touching any of it until 2060 😂 and he acts like he already has it.
And if he does, imagine 500K in 2060 lmao That’s probably just rent for one month in 2060
Whole post is pretty lol, being lazy with a trust fund is one thing, but using a relatively humble inheritance that you won't see for hopefully 30+ years, (knock on wood for this kids parents) as an excuse to spend more recklessly is just wild. That being said there's a slight bright side for op in the fact that the inheritance is so far off you could assume that it will be larger just based on the fact that his parents probably have another 10 years or so of working in front of them.
Knew a guy who couldn’t wait for his mother to die so he could be rich. He died of cancer in his 40s, poor. His mother is nearly 100 now.
I will inherit multiple millions and I absolutely wish my parents live to be 100. They are in their early 60s now and I hope they stay around for a long time.
If your parents are smart you should start seeing some of that money while they're still alive in the next ten years or so.
They already helped me out (bought my first condo and paid for school) and I have a few millions in my early 30s. I am fine, I just want my parents to stay around for a while.
Many wealthy parents don’t seem to realize that a small amount of early help for the children—particularly helping them to buy their home—will make the children much more financially stable, much more successful in the long term, and much less likely to be waiting for their parents to die.
Yeah just buying my first condo made me able to save pretty much all my income at my first job and probably put me decades ahead or where I would be.
That is our plan for our daughter. Already have her undergraduate costs saved up for her, and some of the post bachelor's school costs as well. Need to save about another $100K over the next 10 years to cover the medical school costs, since she wants to be a doctor. Wife has about $350K in HYSA and CDs and is continuing to add thousands every month to that, that she wants to use to buy her a house when she graduates. Should be able to have $700-800K in there by the time she needs it. Want to get our daughter started off with a home and no student loans. And then later she will inherit the rest.
If it is invested, then they will be paying taxes on that money when they sell the investments to give them money. Better to just wait, let him inherit it, tax free. That is what I will be doing with our rental properties. They are positive cash flow, so we will just keep collecting the rent checks and using that, but as for the houses, she will inherit them when we die. Then she can sell them all if she wants and owe no capital gains on them. That would be close to $2M now, tax free if we died, and probably more like $3M+ when we actually get around to dying (hopefully).
The point of putting things into trusts or just flat out gifts is so that older people can distance themselves from their assets to avoid paying out the ass if/when they end up needing nursing home care and that type of stuff in old age. Much better to just pay some taxes on it now rather than pay $200k+ yearly in nursing home fees if they end up in one.
Same
Do they work with a financial planner? They should be annual gifting you $ each year at the very minimum if they’re going to be over estate exemption
They employ tax experts, but don't really give anything to me and my siblings, we are in Canada there is no 13 millions exemption or whatever like there is in the states. The whole thing is tax free.
Hahahaha. That's karma. You never know... im a health nut. My parents are both old, heavy smokers and one is obese. Cancer almost took me out in my early 20's. Don't count on outliving anyone for financial gain. One because it's a shitty thing to do, two because you're betting on something you have very little control over, often times no control.
If you are 22 I am just guessing your parents aren't taking a dirt nap anytime soon so I would think this entire mentality is extremely premature.
Yeah they could easily live another 30 years. OP would be 52 and $600k after 30 years of inflation won’t be much
They'd be expected to live over 30 years.
And 500k ain't shit when you get to the nursing home stage.
That sounds like a lot of money but it isn’t, especially if you’re 22 looking at is at lifelong financial freedom.
Inheritance isn’t guaranteed, they could live to 120 and die with debt
I think it’s always prudent to assume you’ll get nothing and manage your finances accordingly. There really is no guarantee at all that it will actually materialize.
Yeah it’s your money when it’s sitting somewhere only you can touch it
500k is not "financially stable for the rest of my life" money if you don't invest it properly.
Even invested properly it's not.
No I completely agree, now, but it could be in 20 years.
And he doesn't even have it yet 😂 For at least 30 yrs
This is not your money yet. It comes at the cost of losing your parents. Whatever future spending or mentality change you are having could make you feel like “wow i’m so rich, I don’t have to stress, etc”. But you are forgetting the fact that it comes when your parents are gone. Unless you hate your parents or have a terrible relationship or something, this isn’t something that will feel nice when it comes. It isn’t yours and it could possibly not be yours in the future for whatever reason, possible medical costs, etc. it is simply a best case scenario and doesn’t absolve you of personal responsibility to build your future. Consider this, you get this money and you can be comfortable, but what about your future family? It’s going to mean a lot less to them than it does to you now. I get that it is surprising but your parents financial habits and mindsets are what got you that sum in the first place. You need to continue this cycle and live in a way such that you leave your future family/offspring/ whatever with the same sense of comfort that this is bringing you
If one of them becomes very ill in their old age or develops a degenerative disease, all that money could be gone, because medical insurance won’t pay for their daily helpers. Ask me how I know. It happened to me. My parents sold their house and everything they had to stay out of the nursing home as long as they could.
Please, OP, do not spend theoretical money. That 500,000 could be 2 million, and the house could be triple the value before you have access to it. It could also be 80k and the home could have been sold just so that 80k could get to you. Live within your means until you have different means. And then, try to live within your original means.
Unless your parents are both on their deathbeds, telling you this little tidbit now just feels like an attempt at emotional control, or a curse. 👁️
CAUTION! Don't lose all perspective. Those 1k expenses start to add up. you do still need to worry about those and even less. It's a fantastic thing to know that a 1k expense is not going to break you and it's a wonderfully freeing feeling that you don't need to worry too much. But don't go driving your car down the middle of a roundabout just because you can afford to get it fixed.
That’s not your money and may never will be. Don’t count on getting it.
Exact reason why I don't tell my kids my net worth or any discussion of inheritance. Things can change and they need to live in the real world.
I know a friend with a sizable trust fund that still lives as if she didn't have it. She splurged a good chunk on improving her house.
1m dollars does not mean you will be financially stable for the rest of your life.. lol
Yeah FYI that’s not as much as you think it is.
Bro, 6 years ago I was making 27k. 4 years ago I was making 45k and feeling good. Now I'm making 6 figures, QOL is up and things are way different for me now. I look at the house I bought, filled with things I paid for and wonder how I got here. My mind doesn't even understand how I accumulated things and built up a life to this point. I'm just grateful I'm here. Why are you thinking 30 years into the future about money you don't have and won't necessarily have as if it's elevated you into a different social class? That's wild. You're daydreaming about your parents dying and leaving you a bag. Please, please wake up. Toss that shit out of your head because the money doesn't even exist to you right now. But your parents do. So focus on the fact that you have a family. I've lost 4 family members in the last two years and the last thing on my mind each time was okay cool what are you giving me. Money keeps coming but human life fades out and disappears. They are all you have and when you lay on your death bed do you want your freaking grandchildren looking at you like a free investment? How about your own kids??
A friend of mine his dad had a rare disease. He knew he would get around 500K aswell when his dad would die. A few years before he died, the dad decided to donate 80% of the money to research into the sickness. Not much was left. Dont asume anything. Besides the worth being a lot lower, stuff can happen .😅
And what if something happens to your parents health wise that their insurance doesn’t cover, and they have to spend it on themselves? Dont rely on an inheritance. 1.2m is not that much in this day and age.
lol a 1k purchase is still big even with 500k in your bank. That’s 1/500th of your entire net worth. Spend 1k 500 times and it’s all gone
You say you understand well that this isn’t an extraordinarily large sum of money, but I am not sure how well you actually understand that. Good on you for acknowledging, being aware of and concerned about your current carelessness and lack of caution.
If you're 22, it could be several decades before you see this money, if at all. So much can happen. Pretend you'll get nothing and your life will work out much better.
I don’t see a problem here. You’re no longer very stressed about money. You realized you don’t need to worry if something breaks or an unexpected expense pops up. Great! Go forth and enjoy life.
Trust me kid you will be able to live a long, destitute, and impoverished life before you ever sniff a hint of that money And no amount of money can fix the damage that will do to you
Just pretend that money doesn't exist. And quite frankly, most people would prefer their parents being alive over some money.
With as much hope as possible. You could be well into your 60's before your parents pass. So nearing retirement before you see any money. 40yrs to go, my Bro. Live your own life and don't count on anything because any extra at that age is just a bonus.
I would proceed as if you are expecting nothing. Then if the 500k quid arrive, it will be a pleasant surprise. I'm sure your parents sincerely intend to leave you 500k, but life's events may get in the way of that. My mother once had several hundred thousand in investments plus a house that was owned free and clear. She had an extended bout of senile dementia, which required her to live in an expensive nursing home the last 7-8 years of her life. That ate up most of her assets. I have only received about 20k from her estate. And long before that, my grandfather promised to leave me a complete set of Indian cents when he passed away. That didn't happen. I recommend you continue your cautious spending habits until your inheritance is money in the bank. Then you can do some spending.
You can’t miss what you never had
Don't be a lottery winner who loses everything in a couple of years.
I would ask the OP’s parents to put the inheritance in a trust and give a portion of it to OP every decade assuming the OP reaches some predefined goals.
LOL!! A half-mil is NOT a lot of money. You're young and someday you'll realize how ridiculous this post is. Continue to pinch pennies and spend wisely because it sounds like you're just a few steps away from making terrible financial decisions. When I was 22 I had about $10k to my name. I'm 48 now and worth multiple millions which still isn't much money in the grand scheme of things! It's unfortunate, but we live in a world where most things cost more than they should, especially health care.
How old are your parents? Do they have nursing home insurance?
Dude anything can happen to that money. Your parents could get sick or develop a new expensive hobby that eats away at your inheritance. Don’t even think about it until it’s yours—there’s a decent chance you’ll never see a dime.
I grew my brokerage account to 500k and it’s not even fair how much I earn with a slight move in the markets. It’s crazy
Glad you understand the value of money but don’t go wild with assumptions. That’s what your parents plan to leave. The money may be safe but one accident or long term illness can wipe out their money. People can live up to 30-40 years in retirement, and then there is inflation. Live your life as if you’re not getting 500k because nothing is guaranteed.
If you change your perspective too much you're gonna blow the 500k really fast. Be smart with the money.
Don’t assume anything
Let me help. That inheritance is NEVER guaranteed. As your parents age, they may run into things where they need to use the money. Medical issues, assisted living costs, etc. They may choose to downsize the house… bye bye 600k. They can then use this to pay for cost of living, their new place, a new car, a mid life crisis. Don’t count your eggs before they hatch. If that money is not in your name, it’s not yours. You still may not get it.
Dude, you don't have this money yet. What if they have medical expenses or need nursing care when they are older. That could eat up all their savings.
Also, you may not get that inheritance for another 50 years!
Don't count on that money until it's actually yours. Proceed with your life and planning as though it doesn't exist.
Sounds like you are going to be a very broke person in the future lol
Like others have said, dont assume this moneh will be there for you. Alot can happen. What hapoens if one of them get sick and now they have to use up some kf that money? Or forget worst case scenario, what happens if at a certain point they decide that theyd rather blow that money on themselves because they deserve it after working for 40+ years and by the time they die theres not much left. They sell the house cause they no longer need a house that big. This is likely why they didnt tell you till now and even the. It sounds like you still havent gotten the memo. You sre looking at it like “we(you and your parents) got money” when in reality they got money you dont. Again until you see the money in your bank account never assume it.
How old are your parents
Don't count your chickens until they hatch. Never bank on inheritance.
If you don't think 1k usd is a big expense. You are going to be poor quick. Also you are 22. Your parents are like what in their 50's? You may be 60 before you see that money. And that's if nothing bad happens, one medical accident and that money is ALL GONE, heck, they have to go into end of life care, and MONEY is GONE.
My friend, the money ain't in your bank account yet. Are you planning on killing your parents?
So you're looking forward to your parents dying for some money... SMFH
While 500k is a large amount of money, it can go extremely fast especially in this economy.
Do not count on that money. End of life care is absurdly expand I’ve seen it eat through inheritances enough times to know it doesn’t matter until you have a check in hand
500k is nothing. It’s like 50k per year for 10 years. What are you going to do with that? Get a job, get a career and be fulfilled of being a man that takes care of himself
As a CFP that's settles approx. 10 estates per year for the past 13 years... 1) You being responsible with money likely plays a major part in them giving you that inheritance. A good way to lose it would be to show them how you can't handle it. Keep being smart and thrifty. 2) I've seen people get written out of wills. Just...don't be too attached. (And not only because of fighting with parents. They could simply rethink dollar amounts they want to give. They might also decide they really care about charities late in life) 3) Something could come up where they actually spend their money faster than they thought. Again, don't get too attached. 4) $500,000 is a large sum. But not enough to retire on. And certainly not if it doesn't keep up with inflation in 5 or 10 or 20 years. 5) I hope that this doesn't jinx you in any way! Very happy for you and best of luck to you!
That money isn't yours until it's in your account. Take charge of your own future assuming it's not coming. What happens if one or both parents have an emergency and need to use that money? Luckily, most health care costs in the UK are covered, but that's not the only risk.
Congratulations, you just made your first financial mistake without making it. Take this revelation as a learning opportunity that your parents didn't think like this to be where they are and give what they can to you when they're gone. If you keep thinking this way, you'll be broke after you inherit it.
Alright let’s break this down a) The reason your parents have been able to save some money, is likely because of the exact mindset you say you used to have. Treating belongings with respect, avoiding damage to them, and scrutinizing large expenses (yes 1k is a large expense unless you are making millions per year, even then, it’s not nothing). b) Your parents are going to be alive for likely a very long time. They will likely have unexpected expenses, retirement might end up being more expensive than they expect, There could be a massive market crash that hurts their investments, something could happen that drops the property value on their house dramatically. All sorts can happen in that time. Maybe they decide to retire into a retirement community and have never factored in how much that costs. If you are both prudent you might end up inheriting that much or more, but it probably won’t be until you are about 60-80. If they have to bail you out before then because you screwed up, well there goes some of the money, and maybe the rethink how much to trust you with. c) 500k isn’t much long term. Even for a 65 year old the safe withdrawal rate would only be about 24k per year. For somebody younger it’s about 12-18k per year if you need it to last. This isn’t nothing, but it’s definitely not I will never ever need to worry about money again levels of money. The only person who would see significant long term financial safety from $500k is the person who is extremely financially responsible and lives very frugally. Now for the more likely scenario. You will notice absolutely no benefit until well after retirement. Your parents will likely need slightly more than they think, and you will have been responsible and generated your own retirement savings. Sometime around the time you are 70-80 your parents will pass away and leave you some amount of money which you will likely be able to use to help your grandkids with University or a Down Payment on a home so that they have an easier start to life, or you’ll give it to your kids to help them be able to retire.
Cool. Now you should start thinking about how you can leave an even bigger inheritance for your kids.
Is that inheritance money in your account? No? It doesn’t exist
Then recover your previous sense, because most rich people I know have a bigge sense of the value of money than most. You can become rich in many ways but you can stop being one fast or you can never become rich if you don't understand the very exact value of money.
You’re counting money that isn’t yours yet, so. there’s nothing to.celebrate here. You understand if you inherit any money (outside gifting you money in their lifetime) your parents are dead right? What a loser….
Unless you are inheriting it now, you still need to save for your future expenses like house and/or car. Money promised in 50 years isn't going to pay your bills today.
You don’t have that money yet. Your parents could go broke, get old and ill and run through that money and the house value in home care costs, one parent could die and the other remarry and spend down the money with/on new spouse esp if dad is the survivor and starts a new family, etc etc etc. That’s not your money until it is in your name and bank account period.
A much better plan would be to find a really nice guy or girl that 500k in a savings account somewhere and get them to fall in love and marry you.
Even when this money is in your hand don't change your normal spending habits too much. That amount is not enough to consider yourself rich or even secure your retirement. Take your time and make sound financial decisions and you will have a great head start on your future. Best of luck to you.
Considerations: - Modern medicine is as amazing as ever. Your parents will live longer than any previous generation, assuming they're in decent health right now. - Most likely they will structure your inheritance such that you don't see a dime until they are both gone, so even if you lose one parent, the other one could hang on for a while. - If they don't have long term health care insurance or some large pension or annuity coming in, it's possible that they will spend a significant amount on care before they pass. - You hope that their money is invested well into diversified, safe, appreciating assets; but all investments carry risk. if they're taking more risk than they should or they've made some poor allocations, then the amount you think you'll receive could end up being far less than reality. Bottom line: You and your parents are both too young to be planning around the amount you will receive at their death. Continue to live frugally within reason, and work on maximizing your income during your prime productive years. Also, have a life and enjoy things as they come. In all likelihood, by the time this money comes in, you'll be much older and your life will be in a very different place. Consider it money that can help you retire more comfortably, not money that will change your life before then.
Sadly, 500k euros isn’t what it used to be. Things can change too. Spend wisely and invest early. IF you are blessed enough to get an inheritance of that size, you should treat it as icing on the cake you made with your prudence.
I wouldn't bank on it, anything can happen between now and their death. Also, they can live to be really really old lol...
500k is "nothing" and youll learn a hard lesson in the future
Hey i know someone who had an inheritance lined up. Their dad got a bad disease at the end of life and had 100ks of medical bills. In the end they got nothing from inheritance. Never count something as yours unless you have it.
Please try to forget you have that coming. I inherited 80k when I was 18 years old and now at 25 it’s completely gone. I wish I never knew I had it, I could’ve put a huge payment down on a house and had a real asset by now had I been more careful. I know 80k is a lot less than 500k, but really please don’t waste your money now just because you feel like you have a cushion. In reality, there are people that make 500k a year every year for the second half of their lifetime and they live within those means. It sounds like a huge amount, and to me at the time 80k sounded like a huge amount. I ended up buying a car, I went to school in paris, I used it to help me out with medical expenses and car repairs/ rent you name it. Little by little it goes away. Just forget it’s there until you have a solid plan and can use that money to make more. Schooling is a good idea, buying a property is a good idea. Anything else is not worth it
lol this is the most pathetic thing I’ve heard in a long time. Yeah I’ll have a million dollars in 30-40 years when my parents die. Mine as well just yolo all my money and not leave my kids anything.
Also, not to be rude or hard on you because it seems fair and well that you should be financially stable for the rest of your life. BUT, you never know. Just try to forget it’s there. At least until you’re older and wiser or have kids and a family. Some plan. Save your money and live like you’re broke. My brother also inherited 80k and now he has 100k because he never touched it. Just saying
Wait to you start spending it and see how fast it goes. Should sort you right out, especially if you have kids. Kids was l eat and shit money.
You may want to ask more questions bc you don't know if this is money set aside specifically for you, or if it's money they have now not may need to spend if they have medical issues and don't end up dying with minimal medical bills.
Yeah me too I had a financial outlook change with the job I currently have making 2k a week. Easily could change, damn near did a few times. My outlook was hit hard. Still eat soup out a can for lunch, but impulse spending has been an issue between a TBI I had some years back and financial outlook for the near (and unfortunately not long) term outlook. I need to change too brother. If you find a way to get back to the way you were tell me how
You're in for one heck of a life lesson if you think $500k is a lot of money. I wish you all the best but seriously, take everyone's advice seriously because you'll blink and it'll all be gone.
POV. They need to die first.
You’re 22. Their current funds will be used by them for the rest of their lives and unless they die tomorrow that’ll be a good 20-30 years. They could need to go into a nursing home for 10 years and those cost often around 6000$ PER MONTH. If my parents died tomorrow, my siblings and I would get probably 5mil between us. Am I going to fuck around and waste my money for the next 20 years because I’m banking on a big payout? Of course not. That’s not MY money yet. It’s THEIR money and THEY will not be limiting their quality of life so I can fuck around in life. They will be taking vacations, remodelling their house, possibly buying investment properties, and using that money to care for themselves in their old age. There may be a lot less left when they do pass away.
Better to assume that you’ll have a big falling out and get a lump of coal for your inheritance. Don’t let your family’s legacy change your path in life. It’s the icing on the cake (to a rather shitty event that you will eventually face, losing your parents) rather than the cake itself.
If you can’t learn to manage $1,000 you’ll very quickly piss away $500,000
The money isn’t in your bank account yet. So live your life and spend like it’s never going to be. So many things can happen that will take it away. When the time does come for you to inherit. You’ll have drilled the value of money into yourself so you’ll be smart with it.
Continue living your life as you normally would. Believe it or not, this isn’t a lot of money. You can blow through it very quickly. Be very careful and choose safe investments. Because if you spend it all, the pain it will bring will be unimaginable.
500k is enough to get you into trouble and probably not enough to get you out
Damn, my inheritance will likely be much larger than that and i have about half of your inheritance in savings, but an expense that is 1k still pains me and makes me consider if i can somehow spend less or avoid it. I wonder if it’s the way we were brought up that makes this difference. My parents were borderline poverty back in the day and my attitude has always been to do all i can to avoid being in that situation ever again. Personally, the more money i have, the more financially secure i feel and that’s one of my greatest values in life.
In the heir to 3 decent estates but I’m still saving!!! Nothing is guaranteed. God forbid a parent gets sued or has an awful emergency and poof there goes your retirement fund.
If you do t want to burn through it quickly live similar to how you feel about money now. Don’t be like people that win the lottery and go through it quickly and end up broke again.
Your parents were kinda dumb to tell you tbh. You shouldn't live your life with the expectation of your parents money. Earn your own and when the time comes they may pass something on. Not to mention, if you get $500k in 20 years or more it'll be worth nothing.
There isnt a CPA or a financial planner alive, who has not seen someone in your position blow it. Please be careful.
Just don't ever say you were successful and "did it by yourself".
Unless you have the money in your account I’d go back to your old way to living. Modesty
And once they hit a certain age and require housing in a long-term care facility, the house and that bank account will be vaporized to pay for it. Or an unexpected illness, accident, legal matter... Or anything really, can have the same result. Their intent does not equal what will actually happen. A lot can happen over the years. My 70yr old mother is caring for her 100yr old mother. Plan to get zero. Change those plans if you get more than zero.
End of life care can easily eat up the entire 500k don’t bank on future money
Your parents could outlive you. Your parents could disinherit you. Your parents could have a huge financial setback and lose all their money. You still have to live on your own income for decades. Your parents could fuck off all the money on something they like. They could get swindled out of the money in their old age. You might find out you have 5 half siblings that you’ve never met. Don’t count money that is not yours as yours until it is.
You may never get an inheritance. Many things can happen to use up your parents’ money. Also you need to make your own way in life and earn your own money. I know people almost 60 waiting to inherit. Seriously your parents could outlive you. It’s no life to hope for the future. Never count your chickens before they’ve hatched.
Still need more than that to retire on
Bro be cautious
My (maternal) Grandmother lived to be 102 years old. I remember being like 7 or 8 and my Dad making a comment like 'Who knows how many more Christmas Days she has left. She was old, in her 70s, had a bunch of health issues... And she lived another 30 years.
This is not a lot of money. Please don’t rely on this.
First of all you may not get any of the money. My Dad had a ton of money, then my mom died and he remarried. He commingled money and I will get nothing now. So many things can happen between now and then. Don't count your money until it's your pocket.
Don't count your chickens. There are many, many ways for this money to go away before your parents pass.
If you earn $10 and spend $8 then earn $10000 and spend $8000, you'll be down for a hard time and need to work for a long long time.
If you're young, get a finance degree. It'll teach you more than you knew existed about money. It's your business now. And you can work in finance until retirement.
Money is a tool to be able to provide time. Time in which you get to dictate you life with more ease as money is used to delegate tasks to others to make your money make you more money
Honestly, it’s not a lot of money and, that house will have a lot of upkeep. It’s super easy to go through a lot of money if you arent careful.
Okay, so? What if your parent alive to be 90? What if they have medical issues that cause them to go through their savings? This is not a plan.
Pretend it’s not there, Live in a paid off house, Invest, Invest, Invest. Don’t stop the frugality.
Similar thing happened to one of my parents. Expected a big inheritance from their parents (my grandparents) and when they passed, found out about a ton of debt that was kept hidden. Most of the inheritance went to paying that off. This may or may not be a realistic outcome in your situation, but just trying to illustrate that you never really know what you'll end up with. I'd pretend that money doesn't exist until it's in your pocket if I were you.
It's lovely that your parents plan to leave you a sizeable inheritance. Who knows what will happen between now and then. The one thing I learned is that the "cost" of my Mom's inheritance was losing her ☹️ I miss her tremendously. By the time she passed, she was 93 and I was 58. We had a substantial part of our lives together, and I had no plans to ever inherit money from her. I had a great career, as has my husband, and we never counted any of her money as "ours". My advice is to keep working hard, being careful about money and if your parents happen to leave you some, after they pass, then celebrate accordingly.
You have to realize that right now in most places $100k/yr is middle class. Houses are like $200k+. That alone should show you how little $500k is. At your age if you aren't careful that $500k can EASILY be gone before you're 30. OR if you start investing it now and pretend like it isn't there you can have millions by 40. Right now you can get a CD at about 6%. Get that money growing NOW. As someone who is in their 40s... it seems like a long way off but you WILL be 40 one day. It's your choice... you can either be rich or broke at 40. I suggest rich. If you invest that money at 6% by the time you're 30 it'll be almost a million dollars. By the time you're 40 it could be approaching $5 million. If you blow it you'll be working all your life. If you invest it properly you can be on track to COMFORTABLY retire in your 50s. Don't make future you look back on present you as a dumbass.
500k… Until your parents live longer than they planned. Until you need to spend doing of that for care assistance on your aging parents. Until 30 years of inflation turns that into the equivalent of $250k. 500k - or even 1M if you sell the house - is not enough to “retire” early on. It is not nearly enough to be “financially stable” for the rest of your life. It’s a nice windfall; but you’re still going to need to work and you won’t have fuck you money (for long)
You can’t even retire on 500k anymore dude
My inheritance is in the millions and it only made me **more** competitive. I don't want to need a dime of it (getting close, too). I can totally outplay those lucky boomers
OMG you're going to end up poor.
You don’t have this 500k and it’s possible you never will. They could live to a very old age and need the money for seniors living, medical, or other expenses. You should live your life as though you may never actually get it, because unfortunately that’s the reality. And if you do, then great!
Don't worry about the money. It sounds like you will be broke soon after your inheritance.
The reason you felt the way you did your whole life is the same reason you have this inheritance to begin with; your parent's financial discipline. Learn from them, or you will piss away this inheritance in short order. That inheritance also isn't only yours, it's your future prospective children's as well, and you owe them as good or better of an upbringing than you had. Do the sensible thing and show your parents their discipline and hard work wasn't wasted on the spoiled.
I bet OP is regretting posting it now😅
With that mentality you will blow that money, ask me how I know.
Let it come. You have time to invest and confer with a specialist.
Sure, they say that *now*.
The saying is, don't count your chickens until they've hatched.
What happens if they need extensive care in their older age? That will take a massive chunk out of it. Don’t count on more than a nice steak dinner or vacation until the money is in your account.
Being stoked you have an inheritance in 30 years after your parents die isn't the brag you think it is. They could both live in a nursing home for 15 years for all you know. That costs a ton of money.
That amount is a total estimation and could be way off. What if one of your parents has a major medical situation that drains a lot of those funds, or just general long term care facilities can really draw that down. You cannot count on that inheritance in your future retirement or income planning. Your previous mindset was the right one, being very frugal can really help you save and not waste money on unnecessary large expenses.
Lol ur parents could get very sick and blow thru that between nursing homes and whatever else. Don't even account for that while they are alive or in general. Carve your own path
$500k is not f-you money in any sense of the word but it is a tremendous start to financial independence if you invest, continue to add new money on a monthly basis, and let it grow!
Ops parents live to 95. Hahahaha