Sunday, 25 May 2008

Should I count on an inheritance in my reitrement plans?


My parents gave me a copy of their Will today. They'd previously discussed their intentions with me, so the contents came as no surprise. They expect to have enough capital to provide a reasonably comfortable reitrement income, and are leaving me a small lakeside, rural property. They've owned that property since I was a boy, and I'd like to retire there. Living there and being able to rent out our current home would also provide extra income during our retirement, but I'll continue saving for our retirement without taking into account any inheritance. My parents could easily end up needing extra money during retirement, so I don't think it's wise to include an inheritance in my financial plans.



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3 comments:

traineeinvestor said...

Sounds sensible. Leaving aside questions of longevity, the future is very hard to predict. A few large unplanned expenses and your parents may well need the asset. I'm in a similar position (although no beautiful lakeside property involved) and do not intend to rely on any inheritance.

mOOm said...

Well an inheritance is a risky asset like many other risky assets IMO.

Evets said...

A few years each in aged care will wittle away what was previously a decent sort of inheritance.

If your parents are ever entering aged care (assuming you are the POA), i would suggest seeking professional advice before they enter, and before you do things like sell houses, as it is a complex area and the correct structure could save tens of thousands of dollars if they are in there for a prolonged period.

Note, by aged care i am referring to Hostels & Nursing homes.