Should You Try to Die with Zero in the Bank or Leave a Big Inheritance? Why Not Both?
As you approach retirement, you might find yourself at a crossroads. Do you want to spend your hard-earned savings on experiences and make the most out of your golden years, or do you aim to leave a substantial legacy for your loved ones? It’s a dilemma faced by many retirees, and the answer doesn’t have to be one or the other.
The Case for Spending
Some retirees are choosing to spend down their savings, adopting the mindset of “dying with zero.” This philosophy encourages enjoying the fruits of your labor while you can, prioritizing travel, hobbies, and quality time with family and friends.
However, if you go down this path, it’s crucial to remain flexible and prepared for unforeseen events. Market downturns or unexpected medical expenses can significantly impact your finances, so having a contingency plan is essential.
The Case for Leaving a Legacy
On the other hand, many find deep satisfaction in leaving behind an inheritance. This could mean ensuring financial security for your children or supporting charities and causes you care about. If you’re leaning toward this approach, it’s wise to consult with a financial professional.
They can help you develop strategies to minimize taxes for your heirs, ensuring your legacy isn’t diminished by avoidable expenses.
Finding a Balance
The good news? You don’t have to choose between spending and leaving a legacy. By working with a financial planner, you can craft a strategy that allows for both. Financial planners can help older
Americans determine how much they can comfortably spend while still setting aside a portion for inheritance. This balanced approach can provide peace of mind and fulfillment, knowing that you’ve planned for both living well and leaving a legacy.
Whether you aim to enjoy every last dollar or leave behind a significant estate, the key is to tailor your strategy to your unique situation.
Work with an IFW financial professional who understands your goals and can guide you in making informed decisions. By planning thoughtfully, you can achieve a retirement that’s rewarding both personally and financially.
After 18 years as President and Founder of TheaterMania and OvationTix, Darren is excited to be on a new journey as the President and Co-Founder of The Institute of Financial Wellness. (The IFW)
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