Did you know that one in five Australians pins their hopes for a comfortable retirement on receiving an inheritance?
To our way of thinking, it’s an approach that’s both troubling and risky.
First of all, it abdicates responsibility as an adult to be responsible for your own financial wellbeing. It also supposes there’s an entitlement to automatically receive what’s been created by someone else.
The fact is people are living longer than ever before. Many will require considerable assets to fund their living expenses for a greater number of years, or in advanced age, to cover the costs of assisted living such as an aged care facility.
On the other hand – and on a much brighter note – many older people have the health and means to travel or spend their wealth enjoying life in ways that previous generations could not have dreamt of.
And finally, many people simply don’t feel beholden to pass their wealth on to their family, deciding instead to direct it to other causes or interests of their choosing.
The lesson here? Those who expect an inheritance to take care of their financial wellbeing may need to adjust their expectations.
And if you do happen to receive some money via an inheritance, that’s fine: just don’t base your financial future on it.
It’s better to take charge of your own financial wellbeing.
For something as important as your finances, you’ll feel far more confident (and personally satisfied) if you are the one in control.
Organising your finances properly throughout your life allows you to plan effectively for each life stage, including your retirement.
In doing so, if an inheritance does make its way to you, it’s a windfall, and not the backbone of your financial future.
If you’d like to know more about how you can “get in the driver’s seat” when it comes to growing, protecting and managing your wealth, we’d love to help. You can book a free, no obligation consultation with one of our experienced financial advisers who will listen to your concerns and goals, and let you know if and how we may be able to assist.
In this way, we can each get a feel for whether we are the right fit for one another.
If this is something you’d be interested in, please contact us to schedule an appointment.