Someone once told me they knew of a couple who said that they were going to enjoy their retirement and spend their money so that their children would not have much to fight over after they passed away. That is one way to handle your finances, although there are no guarantees that leaving little money would keep the peace. Another approach could involve outlining clear plans for your finances and relaying these plans to your children, emphasizing your faith in their ability to be mature regarding your decisions. If you are interested in estate planning, both to ensure you have enough for your golden years and to pass along wealth, you can consult a Fee-Only financial advisor.
Rather than ignore the possibly uncomfortable topic of money and inheritance, why not broach the subject with your intended heirs? You can let them know the plans you have made to make sure that you can live comfortably as you age. If your children do not want to discuss this because it seems painful to them, remind them that you want them to be informed because you care about them.
In “‘The Talk’- discussing the financial facts of life,” Eleanor Blayney, CFP®, writes: “Acknowledge the importance of financial privacy and autonomy, even among family members, but point out the many ways a family is inevitably linked where money is concerned.”
Your taking the initiative to talk with your children or other heirs about your plans for the future is a great way to serve as a role model. Being an example and showing others how to be financially responsible is a great gift. That legacy of financial leadership will have an important impact on their lives and will make a great impression on them—and the value of that example is something that cannot be measured.
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Disclaimer: Claire does not offer any financial advice on this website. All information provided on the site or in this blog is for educational purposes only. Contact Claire or your financial advisor for specific advice that will fit your situation.