What to do with the money we’ve saved and invested all of our working lives? Do we spend and enjoy it or do we keep money back so that our kids receive an inheritance? Obviously, it’s not really a choice between one of these extremes and the other but it’s important to consider where you want to be between these two?
What Sort Of Life Would Make You Happy?
Firstly you should consider what sort of life would be enjoyable for you? If your dream retirement consists of kicking back and tending the garden with the odd day trip out then it’s not going to be a hugely expensive lifestyle so you may be able to leave much of your wealth to one side. If you would rather travel, go on a cruise or generally live the expensive lifestyle and you have the funds to afford this then it’s your money of course and why shouldn’t you?
How Are Your Kids Set Up?
As much as it’s a nice idea to be able to leave something for the kids it’s important to consider how well off they are in their own lives and do they really need anything to be left to them? It’s entirely possible they are financially secure, don’t need anything else and would actually much rather see you enjoy your retirement. Although not quite as common as in past generations it’s still very possible for your kids to be better off than you were.
Look At What Assets You Have
Where are you financially? It’s an important exercise, even before you retire, to sit down and assess what your assets and liabilities are to get a realistic idea of your net worth. This includes your property, pensions, savings and investments along with any physical assets. Even if your money is tied up mostly in the house you can release funds through a good equity release company such as Key Advice.
Can You Do Things With The Kids
If you do leave money to your children then it may be subject to inheritance taxes so maybe it’s a good idea to use some of your money to have experiences with them during your retirement. Why not organize and pay for a big family holiday or other experiences, this will be a great time and memory for all of you and spending time together is surely more valuable than money being left.
What About The Grand-kids
Maybe if as we stated above your kids are financially secure it might be the grand-kids who need a helping hand getting started in life? If you have the means then how great a gesture would it be to be able to help them through higher education or offer them some assistance in getting the deposit together on buying their first home? This type of head-start can be the little push they need to be able to kick on and make a success of their life.