Don’t Retire Early Based on an Expected Inheritance

With nearly $124 trillion expected to change hands in the coming decades, many Americans are factoring inheritance into their retirement plans. But is that a safe move?

Zachary Mineur, CFA, CFP® was quoted in Kiplinger offering a clear-eyed warning for anyone considering early retirement based on an expected inheritance:

“The hard truth is that there is no such thing as a ‘sure inheritance.’ People change their minds, especially near the end of their lives. While the chance may be perceived to be small, banking your retirement on the potential for an inheritance is a dangerous move.”

Zach also recommends a proactive alternative for families in this situation, discussing the possibility of gifting assets while a parent is still alive, or placing assets in a trust that makes the transfer not contingent on death.

“Comprehensive financial and estate planning can often provide for many of the what-if scenarios that distributing assets through a basic will cannot,” he said.