Should You Leave Your Money for Your Children or Spend It?
Published: 2nd July 2018 15:29 |
It’s an age-old dilemma that reaching retirement brings. You’ve worked hard all your life and amassed some savings. You’ve also paid off your mortgage and are sitting pretty in your own home. At this time in your life thoughts can wander to the future, and what is going to happen when you’re gone. If you’ve got children, you’ll be wondering about leaving an inheritance. After all, your parents did it for you, and it’s only natural you want to do the same for your offspring. There are options you need to consider. You can cut back to ensure you’ve got something to pass on. You can spend it and enjoy your retirement to the full. A third option is also available, and it’s becoming more popular. Releasing equity in your property is one way you’ll be able to enjoy spending some of your money, while at the same time keeping some in reserve for your children. Three choices to make, but which one is the right one?
What Would Your Children Want You to Do?
The majority of people would say they’d prefer their parents spent their money and enjoy their retirement doing what they want to do. When asked to choose one of three variations, most opt for spending the money. Children tend to appreciate how hard their parents have worked and want them to enjoy retirement as much as possible.
For parents, thoughts are a little different. The majority want to be in a position to be able to leave their children something, and for many, this will mean downsizing and cutting costs. At the very least it means not being frivolous with money.
Discuss Your Thoughts Openly and Honestly
The fact that there are such contrasting views regarding inheritance makes it all the more important for families to discuss it. Admittedly, it can be a difficult subject to broach, but that doesn’t mean you shouldn’t try. It is also important for parents not to feel obliged to leave an inheritance. It is actually thought that leaving a sizeable sum of money for your children can be detrimental.
There is a Viable Third Option
Many retirees are choosing equity release as a way of gifting family money. It is also being used as security for the future. However, there are many ways you could spend money released from your home. You could take an extended holiday, refurbish your home, buy a new car or pay for a grandchild’s University education.
Reaching retirement shouldn’t be a stressful time in your life. It is meant to be a time when you enjoy the world around you, spending time with friends and loved ones. You’ve got no more worries about the daily grind of work, and your time is yours to do what you want with. Weigh up the pros and cons of the three options we’ve mentioned above and choose wisely. Above all, take the time to discuss the issue with your family. It may surprise you what they think.
Report this article as inappropriate
Comments
You need to log in before you can do that! It's only a quick registration process to join the AMA network and completely free.