Preparing Not to Inherit

An unexpected windfall would certainly be a welcome gift for many people, but counting on an inheritance to fund your retirement years could be a grave mistake. Surveys suggest that only about 2% of baby boomers have inherited $100,000 or more. Half of the baby boomers who did inherit funds received $48,000 or less.¹

Numbers like that make it clear that preparing for retirement will require adequate saving and investing — not just working hard to stay in the good graces of wealthy relatives.

More Americans are spending down their retirement savings while living longer, more active, and more expensive lives. Volatile real estate values, an uncertain economy, and ups and downs in the market have also affected many retirement portfolios. All these factors, in addition to expensive health-care costs and higher living expenses in general, could actually result in aging family members having fewer assets to leave behind.

You may have family members who would love to leave you a tidy sum, but it could be disastrous to leave your financial future to chance. Be prepared to fund your own secure retirement. If a windfall should one day come, you just might be in the enviable position of leaving a lasting legacy yourself.

1) The Wall Street Journal, June 14, 2008