Money Monday!

Baby boomers in the U.S. are set to bequeath $68 trillion in wealth by 2043 as part of what has been referred to as the Great Wealth Transfer. Much of that will be left to Gen Xers and Millennials. The topic of inheritance can be complicated.  Here are a few things you can consider now:

  • Should You Include Inheritance In Your Financial Planning? I say yes, but planning around your inheritance can make you feel like a jerk. Two thoughts on that:
    1. You probably feel this way because you are a good person and you care about your parents. You can have both. Care for your parents because that’s the right thing to do, but also take a conservative estimate for what you think you will inherit and add it to your financial plan in a year you think it’s likely to happen.  Doing this can actually have a really interesting unintended result. By writing down the years in which you think your parents will die, it may give you some urgency to pack in some more good memories while you still have them.
    2. If you still don’t feel good about this, put yourself in your parents’ shoes. Don’t you think they would want you to consider this money as part of your future? It only makes sense that you would plan to make the most of it.
  • Resist “False Urgency”: I’ve seen inheritances get blown away, and it can happen to you too. AND… it doesn’t happen like it happens in the movies. Here’s how it looks:  things that weren’t financial emergencies start to feel that way because you have more money to address them.   This creates what I call “false urgency”.  Resisting “false urgency” can be difficult. Having a well-defined financial plan is a good place to start on this. 
  • If You Just Inherited Money, Maybe Wait To Make Any Immediate Decisions: If you are like me, it feels strange to leave things undone. However, emotions are often high when people inherit money, and it makes sense to let things settle.  I advise people to make data-driven decisions whenever they can, and this can be difficult to do during such an emotional time.
  • Consider Memorializing A Loved One With Your Inheritance: The person passing this money to you most likely did so because they cared deeply about you, and you cared about them as well. Sometimes, if I see people get stuck in deciding how to handle their inheritance, I suggest they take a portion of the money and use it in a way the person who gave it to them would appreciate.  Here are a few ideas:
    • Contribute money to help see something through that they were a part of during their lives.
    • Spend the money on something you know they would have liked to see you do for yourself.
    • Donate to a charity they would appreciate.
  • If You’re the Executor For Someone Who Passed Away Recently:
    • Consider hiring an attorney to help with estate administration. I’d be happy to refer one to you.
    • Have a financial advisor. We can help.  The job of an executor can be difficult, and this is an area where financial advisors typically have significant experience. 
    • Message me for our “Loss of a Loved One” document. It’s a list of the things you should be considering financially and otherwise.




Any opinions are those of Wheeler Financial LLC and not necessarily those of Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material.  Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendations.  You should discuss any tax or legal matters with the appropriate professional.