Author Topic: how much has inherited wealth helped you on your way to fire?  (Read 10772 times)

rob in cal

  • Stubble
  • **
  • Posts: 240
how much has inherited wealth helped you on your way to fire?
« on: October 10, 2017, 10:52:20 AM »
  I think in our case we actually have inherited about 63k, in different installments over the last 25 years. In our case it has mostly been in laws who wanted to help one of my wife's sisters so they gave equally to all.  And also an inheritance from my grandmother.  Having invested basically all that money (last gift in about 2010), it does represent a nice chunk of all of our assets, factoring the compound growth over the years. Thank you, in laws.

GuitarStv

  • Walrus Stache
  • *******
  • Posts: 9121
  • Age: 36
  • Location: Toronto, Ontario, Canada
Re: how much has inherited wealth helped you on your way to fire?
« Reply #1 on: October 10, 2017, 10:55:33 AM »
We have received 0% inherited wealth.  (Excluding the tremendous benefits of having parents who weren't living paycheck to paycheck, who were able to take the time to ensure we understood things that we were struggling on in school, who read to us, and who weren't stupid - genetically that makse a difference.)

ZiziPB

  • Magnum Stache
  • ******
  • Posts: 2565
  • Location: CT for now...
Re: how much has inherited wealth helped you on your way to fire?
« Reply #2 on: October 10, 2017, 11:20:13 AM »
We have received 0% inherited wealth.  (Excluding the tremendous benefits of having parents who weren't living paycheck to paycheck, who were able to take the time to ensure we understood things that we were struggling on in school, who read to us, and who weren't stupid - genetically that makse a difference.)

+1
Same for me.



Linda_Norway

  • Handlebar Stache
  • *****
  • Posts: 1613
Re: how much has inherited wealth helped you on your way to fire?
« Reply #3 on: October 10, 2017, 11:44:12 AM »
When my father died in 1995 I inherited a modest sum in theory. But by testament, my mother can use it up the way she wants. I can only claim it if she would remarry.

So we have never received an inheritance. In my FIRE spreadsheet I have counted on nothing. But in practice we do expect to receive a windfall in the far future when my mother ever dies or when my parents in law die. I just don't dare to count on it for sure, because you never know whether the parents suddenly decide to give it all so someone else.
« Last Edit: October 10, 2017, 01:06:29 PM by Linda_Norway »

patchyfacialhair

  • Bristles
  • ***
  • Posts: 478
    • Journal
Re: how much has inherited wealth helped you on your way to fire?
« Reply #4 on: October 10, 2017, 11:48:38 AM »
Nothing actually inherited, and not planning on it either.

My folks are financially sound (not quite FI yet, but in 3 years they will be). Should both parents die peacefully with minimal medical intervention, my brother and I stand to split a few hundred thousand, at best. It's likely that those funds will be drained if they need assisted living in their later years. Neither of us have really thought much about it.

My in-laws: Super low net worth dangerously close to retirement age. If we see anything from them, I'll be extremely surprised.

I did live a home rent free for a couple of years which allowed me to shovel cash into paying off my massive student loan, so yeah, there's my "inheritance."

jlcnuke

  • Stubble
  • **
  • Posts: 179
Re: how much has inherited wealth helped you on your way to fire?
« Reply #5 on: October 10, 2017, 12:02:35 PM »
$0 inherited to date. Anticipating that number to remain the same unless someone wins the lottery or something similar.
Delta card referral, 10k extra for both of us (60k total bonus miles for you) http://refer.amex.us/JEFFRC3xlu?xl=cp52

Evgenia

  • Stubble
  • **
  • Posts: 112
  • Location: California
    • Evgenia Got FI
Re: how much has inherited wealth helped you on your way to fire?
« Reply #6 on: October 10, 2017, 12:05:42 PM »
Not at all. Our families won't have anything to pass on. Indeed, we've helped support them during times of unemployment, etc.
FIRE since June 2015. Chronicling the post-FIRE transition at: https://evgeniagotfi.wordpress.com/

dresden

  • 5 O'Clock Shadow
  • *
  • Posts: 16
Re: how much has inherited wealth helped you on your way to fire?
« Reply #7 on: October 10, 2017, 12:45:59 PM »
Zero.  We actually spent over 100k helping out parents.

Caoineag

  • Bristles
  • ***
  • Posts: 368
  • Age: 36
  • Location: Denver
    • My Journal
Re: how much has inherited wealth helped you on your way to fire?
« Reply #8 on: October 10, 2017, 12:59:32 PM »
Another in the negatives. I have given them money rather than them giving me money.

Cwadda

  • Handlebar Stache
  • *****
  • Posts: 1909
  • Age: 23
Re: how much has inherited wealth helped you on your way to fire?
« Reply #9 on: October 10, 2017, 01:15:19 PM »
I will most likely inherit a sizable sum when my parents go, but should be FIRE'd well before then. Shouldn't impact my FIRE date at all.

jim555

  • Handlebar Stache
  • *****
  • Posts: 1297
Re: how much has inherited wealth helped you on your way to fire?
« Reply #10 on: October 10, 2017, 01:23:19 PM »
Zilcho.

o2bfree

  • Stubble
  • **
  • Posts: 192
  • Location: Pacific Northwest
Re: how much has inherited wealth helped you on your way to fire?
« Reply #11 on: October 10, 2017, 01:24:30 PM »
I haven't REd yet, but have reached my FI goal. Zero inheritance so far. My dad died a few years ago and left everything to mom. She's got a nice sum to live on, but could live another 20 years and spend most or all of it. I'm not counting on any inheritance.

UnleashHell

  • Magnum Stache
  • ******
  • Posts: 3199
  • Age: 50
  • Location: Florida
  • climbing out of a dark hole
Re: how much has inherited wealth helped you on your way to fire?
« Reply #12 on: October 10, 2017, 01:38:23 PM »
0

My parents rent a few properties in the UK and have been retired 10 years. Last month was the first time they saw a month that was cash flow negative (and they do a lot of travelling). If they were to die with a small amount of medical expenses then its safe to say that I could easily end up with a very large amount.

by the time I get it i'm hoping to be in a position where its totally unnecessary and will be used as some sort of legacy (establish some education funds / seed money for grand kids).

I hope that day is a long way off.
_____________
JTF 96

talltexan

  • Pencil Stache
  • ****
  • Posts: 988
Re: how much has inherited wealth helped you on your way to fire?
« Reply #13 on: October 10, 2017, 01:38:29 PM »
I inherited about $10,000 from an aunt in my mid-20's. I wasn't strategic about it at all.

My wife received a six-figure nut from a grandparent when we were still dating. It enabled us to always avoid paying PMI on the houses we've bought over the years.

Helvegen

  • Bristles
  • ***
  • Posts: 473
  • Location: PNW
Re: how much has inherited wealth helped you on your way to fire?
« Reply #14 on: October 10, 2017, 01:46:48 PM »
The only money I have ever inherited was $500. Used it towards buying the great little car that would drive us literally to better financial pastures. I was under strict rules from my grandmother that we should spend it on something fun because that's what our grandfather would have wanted. Yeah well, he worked until the literal day he keeled over in his office and died for all intents and purposes later in the day at 79 years old. He was insanely deep in debt (because he insisted on having the best and newest of EVERYTHING), nothing saved for retirement, and was one of the reasons I was, and still to an extent am, turned off to entrepreneurship. I knew right away not to piss away the money and my family ended up way better for it.
« Last Edit: October 10, 2017, 01:50:00 PM by Helvegen »

RelaxedGal

  • Stubble
  • **
  • Posts: 243
  • Age: 39
  • Location: 495 corridor, Massachusetts, USA
Re: how much has inherited wealth helped you on your way to fire?
« Reply #15 on: October 10, 2017, 01:54:07 PM »
My grandparents passed away in my early 20's.  My parents said "We're already set, this would do you more good than it would for us." and gave me $20,000 which I used toward the down payment on my house.  I have since repaid them, but that big of a boost at that time in my life was a big help.

Dave1442397

  • Pencil Stache
  • ****
  • Posts: 537
  • Location: NJ
Re: how much has inherited wealth helped you on your way to fire?
« Reply #16 on: October 10, 2017, 02:05:06 PM »
Zero here so far. There's a possibility of maybe $50k from my MIL, and perhaps $150k from my parents as things stand right now, but we certainly aren't counting on anything.

jpompo

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Re: how much has inherited wealth helped you on your way to fire?
« Reply #17 on: October 10, 2017, 02:29:55 PM »
I'll break up this parade of zeros. Undergrad was paid for, I went instate and graduated in 7 semesters so that was worth probably $70k 10 years ago. When my grandparents passed away I inherited about $100,000; I used a substantial portion of it to buy my first house. In 4 years the house has increased ~$250,000 in value, additionally the down payment allowed me to avoid PMI. These two things knocked years off the FI equation, I hope to be able to do the same for my son.

TartanTallulah

  • Bristles
  • ***
  • Posts: 271
  • Location: The Middle of Scenic Nowhere
Re: how much has inherited wealth helped you on your way to fire?
« Reply #18 on: October 10, 2017, 03:03:54 PM »
Another zero. My parents were young when I was born and I expect either or (I hope) both of them to live until I'm in my seventies. None of my grandparents had two farthings to rub together. I suspect that if I'm OK financially my parents will choose to bequeath directly to my children to avoid the risk of "their" money ending up with my husband's children from his first marriage if I predecease him.



partgypsy

  • Handlebar Stache
  • *****
  • Posts: 1406
Re: how much has inherited wealth helped you on your way to fire?
« Reply #19 on: October 10, 2017, 03:15:41 PM »
My parents paid for my college tuition, the part that wasn't covered by scholarship and 500/semester living expenses (total of 36K, late 80's). This allowed me to graduate with no college loans, which was a big benefit. Ditto for growing up in a nice safe suburb with good public schools. I also inherited a coin, my share in the coin being around $700 (spent on fun stuff).
Otherwise, there is nothing to inherit on my side of the family unless my mother immediately pops off after selling her house (she comes from hardy stock and is more likely to out-live her money). Father rents and if anything has some medical debt.   
I do give money to my mom, just to help her out.

My ex husband has been given gifts of money, the largest being 5500? earmarked for the kids, so it was divided into their college accounts. It's possible that he may end up inheriting something from his side of his family, but then again they all seem long-lived and there are too many variables, in particular medical expenses, to really count on anything. 

I guess my only regret is that both of my parents did get inheritances from their parents or grandparents (Mom about 40-50K, Dad about 140K), which did seem helpful, but still somehow managed to end up with nothing to show for it. I think that's in part why I am financially conservative and save for retirement. 
« Last Edit: October 11, 2017, 09:01:40 AM by partgypsy »

Ze Stash

  • 5 O'Clock Shadow
  • *
  • Posts: 15
  • Age: 25
Re: how much has inherited wealth helped you on your way to fire?
« Reply #20 on: October 10, 2017, 03:21:22 PM »
No actual inheritance to date and as parents are still young I'm hoping there won't be one for a long time. I did however receive generous birthday/christmas gifts from grandparents to the tune of around 1000 per year and a one time "early inheritance" of 5000 also from grandparents after finishing my bachelors and will receive another 5000 after finishing my masters. Cousins that finished education already received the second installment and my grandparents make sure to keep everything very fair, which is why those 5000 are fairly certain. They believe in giving away before they die because that way they can see the money being put to good use. They enjoy hearing about the experiences it allows their grandchildren to have which they did not get to experience because the times were different in Germany when they were young. Until 2 years ago I mostly used those gifts for travel, since then it is mostly being invested which especially my grandma is also interested in.

Oh and no need to worry about my grandparents running out of money because they're giving it away to their grandkids. Even with those gifts they're still cash flow positive because of rental properties.

mm1970

  • Magnum Stache
  • ******
  • Posts: 4661
Re: how much has inherited wealth helped you on your way to fire?
« Reply #21 on: October 10, 2017, 03:56:32 PM »
I got about $10k when my dad died 10 years ago.

My grandfather's second wife died last year.  My mother died before she did, so I got 1/3 of my mother's portion.  Which was...oh I don't remember.  $8k? $10k?

Didn't affect FI at all.

gmdv

  • 5 O'Clock Shadow
  • *
  • Posts: 36
  • Hermit Wannabe
Re: how much has inherited wealth helped you on your way to fire?
« Reply #22 on: October 10, 2017, 03:57:24 PM »
$0 and will stay this way.  I already told my parents to use up all their money because anything left behind will be donated to charity under their name.

CindyBS

  • Stubble
  • **
  • Posts: 190
Re: how much has inherited wealth helped you on your way to fire?
« Reply #23 on: October 10, 2017, 03:59:14 PM »
$37K at age 18,  $20K at age 31, and $7K at age 37.  So $64K total.

Most all it has been used for house downpayment, major house repairs, emergency savings account, starting IRA's and 1 kick ass 6 month trip taken in my younger days.

I have been greatly helped by inheritances, not necessarily b/c the amounts were so high, but because the ages I was when they came.  Starting off young adulthood with a wad of cash was a huge help in a way that it would not have been if I had gotten them later.

I suspect my parents will be leaving me a somewhat decent amount depending on what the nursing home situation ends up being.  I'm very grateful for what I got and am not counting on getting any more.   

chaskavitch

  • Stubble
  • **
  • Posts: 167
  • Age: 31
  • Location: Fort Collins, CO
Re: how much has inherited wealth helped you on your way to fire?
« Reply #24 on: October 10, 2017, 04:14:24 PM »
I've gotten a huge leg up from family, in both dollar amounts and in security. 

I got a few thousand dollars when my grandparents passed away, which my parents put toward my tuition. 

My parent paid for all of my undergrad costs that weren't covered by scholarships or my part-time lab job, as well as giving us $10,000 for our wedding, AND handing over the $20,000 they'd saved up for my college, which we used as a downpayment on our house and to pay off my husband's remaining car loan.  They were apparently in a good enough place financially by the time I went to school that my dad just paid for it instead of digging into savings.  They've also paid off their mortgage and made sure they're set for retirement, so I don't have to worry about them ever being destitute.  It's a huge load off of my mind, especially after reading some of the family horror stories on the forums.  I don't know if they'll leave me anything, but I'd much rather they live for a long time and have a good life in retirement than give me their money.

My husband will inherit from a trust from his grandfather in the low 6-figures in 7 years or so.  I don't ever count it in our net worth or FI calculations since it isn't officially ours yet, but if my math is right, we'll have enough saved by then that it would bump us well into FI territory.  This trust also covered his undergrad costs, so we were both lucky enough to start off with no college loans.

Cassie

  • Magnum Stache
  • ******
  • Posts: 3751
Re: how much has inherited wealth helped you on your way to fire?
« Reply #25 on: October 10, 2017, 04:47:56 PM »
Zero.  My Mom lived to be 90 and luckily was able to spend her $ traveling and having fun. She pre-paid all funeral costs and told us to sell her car and take everyone to a nice lunch which we did.

SubmarineNavigator

  • 5 O'Clock Shadow
  • *
  • Posts: 11
  • enjoying life :)
Re: how much has inherited wealth helped you on your way to fire?
« Reply #26 on: October 10, 2017, 05:01:49 PM »
My grandparents contributed to my college fund starting when I was born, and at every birthday. As a child I got these checks and dutifully handed them to be mother to be deposited. I never saw this account, but at 15 my father withdrew the money and he invested in on the market. He was a construction worker and he began taking night classes to learn about investing. My family used my college fund as leverage over me a lot when I was a teenager.

At 18 I went into the US Navy, at 24 I got out and went to college on the GI-Bill. At that time my father gave me my stock, I had $750 of GTE stock. After all those years of carrot-on-a-stick BS, my college fund was less than a single paycheck. Thankfully my GI-Bill was enough for 4 years of college.

After college I went back into the Navy, and I got married. My wife was orphaned when she was 12. At that time, her uncles donated to a 'hope chest' for her. Saying that when she got married she could have it. After 5 years of marriage, we went to visit one of her uncles specifically to get this investment. As it turned out, they had placed cash in a safe deposit box, and let it sit there for 15 years. It was around $200.

In the 1990s my grandparents passed away and I got $5,000, which we put against one of the apartment complexes that I had bought on my own.

I retired in 2001, at 42 years old, with a Navy pension. At that time, I had owned a series of four apartment complexes that I was able to buy on my Navy salary. I merged their equity into a single property and used that equity to buy a farm in the woods, all with cash, no mortgage.

Around 2005 my mother passed away, and I got $16,000, which we put make improvements to our farm.

In 2016 after 15 years of retirement living the life of an off-grid organic farmer, in the forests of Maine. My Sister-in-law passed away. She was a corporate exec of a publishing firm in DC [$250k+ salary and multiple healthy 401Ks]. Suddenly at 58 years old there is an inheritance of note. We bought a commercial building in a downtown block of a state university town, we are remodeling it into an apartment complex.


teen persuasion

  • Pencil Stache
  • ****
  • Posts: 944
Re: how much has inherited wealth helped you on your way to fire?
« Reply #27 on: October 10, 2017, 05:22:28 PM »
DH inherited $10k from a great aunt, a portion of his mother's share.  I'd been considering using it to pay down the mortgage somewhat, when his employer went out of business.  He opted to go back to school while he had unemployment and retraining assistance, so we sat on the inheritance for a while as an extended EF.  Never needed to touch it, and by the time he was settled in a new career I had earmarked some other snowflake money towards the mortgage pay down.  I believe ~$15k in a lump sum knocked 8 years off our mortgage in one fell swoop. 

I had written out an amortization schedule on the back of an envelope, so I could easily see how much progress we were making in clearing the mortgage out early.  I could see that the sooner I paid extra, and the more I paid at once, the faster my progress.  It encouraged me to be bold: I tried to at least add an extra month's principal to each month's payment, and big lump sums like tax refunds annually, rounding up as much as possible.  That led me to figuring out how to maximize our tax credits, to get more to put down.

Once the mortgage was gone, 15 years early, I boosted DH's 401k contributions, and put the refunds to Roth IRAs.  Little tweaks for years had snowballed into a serious savings rate for retirement.

moof

  • Bristles
  • ***
  • Posts: 368
  • Location: Beaver Town Orygun
Re: how much has inherited wealth helped you on your way to fire?
« Reply #28 on: October 10, 2017, 06:01:34 PM »
Zero.

We grew up fairly poor, my father is still pretty poor (living on a pipe fitter's pension, and car on pedestrian settlement), mom is dead, step-dad has a stash that should keep him off the street and is not likely to die any time soon (knock on wood).

I did benefit from a decent upbringing that emphasized education, but we were always at or below paycheck to paycheck despite a LCOL.  We had a lot of stretches of living student loan to student loan, or losing paychecks shortly after finally paying off racked up credit cards from the last family calamity.  I came out of it with frugal tendencies and a strong aversion to debt, for which I am very thankful.

mancityfan

  • Stubble
  • **
  • Posts: 119
Re: how much has inherited wealth helped you on your way to fire?
« Reply #29 on: October 10, 2017, 06:24:21 PM »
We have been incredibly fortunate with inheritances. I grew up in a solid middle class setting and was frankly shocked when my third of my parents estate amounted to around $180K. On my wife's side, her mother passed and left around $300K. We have been informed that via an aunt that passed recently we may be receiving another inheritance.

With these very significant windfalls, we have paid off the mortgage ( we live in a modest house for our area). We have 3 kids currently all in college, we are using the inheritance money to put them through college.

We plan to set up college savings plans for future grandchildren. Basically pass it along.

The psychology surrounding inheritances is quite complex.I am not surprised to see very few people coming forward with information about inheritances received. There can be guilt, embarrassment even. A feeling that this was not "earned" money, and shame that may accompany that. I have certainly had to work through that, and part of me posting this is to help me process our own good fortune.

I believe that there are many many people reading this thread who have received - or are likely to receive - very significant inheritances. They are not posting because they are working through their issues around inheritances. 

ixtap

  • Bristles
  • ***
  • Posts: 427
Re: how much has inherited wealth helped you on your way to fire?
« Reply #30 on: October 10, 2017, 06:37:04 PM »
Inheritance: 0

Being raised by responsible people who prioritized their children's well being, independence and education: Priceless

We fully expect inheritances to go to benefit the grandchildren, and we haven't supplied any.
« Last Edit: October 10, 2017, 06:48:57 PM by ixtap »

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 3041
  • Age: 30
  • Location: New York
  • CFO
Re: how much has inherited wealth helped you on your way to fire?
« Reply #31 on: October 10, 2017, 06:42:47 PM »
0
"A small house can hold as much happiness as a big one." - Fortune Cookie

33 Months till FIRE - Stop by, or stay a while.....
https://forum.mrmoneymustache.com/journals/fire-by-thirty-five-chronicles-36-months-till-sabbatical!/

Melf

  • Stubble
  • **
  • Posts: 117
  • Location: Raleigh, NC
Re: how much has inherited wealth helped you on your way to fire?
« Reply #32 on: October 10, 2017, 06:47:44 PM »
Zero inherited so far and not really expecting anything either.  My dad lives on SS and whatever his wife gets for retirement/SS.  My mom may leave a little something to us three remaining kids but I doubt it would be much of anything.  I don't need it or count on anything though since I've been FIRE for almost a year now.

Hotstreak

  • Pencil Stache
  • ****
  • Posts: 728
Re: how much has inherited wealth helped you on your way to fire?
« Reply #33 on: October 10, 2017, 06:54:40 PM »
None so far. 


I have two living parents in their 60's and four living grandparents in their 90's.  If they all died today I would get around $750k and could retire instantly.  But considering they are all in at least decent health, I can't count on it.

Laura33

  • Handlebar Stache
  • *****
  • Posts: 1327
  • Location: Mid-Atlantic
Re: how much has inherited wealth helped you on your way to fire?
« Reply #34 on: October 10, 2017, 07:09:34 PM »
My grandma died my junior year in college and left me about $3k.  Conveniently, that and a summer job was enough to cover my first year of law school.  I'd obviously have managed if I had needed to take a loan, but it was very nice knowing that I wasn't in hock if I didn't like it.

I inherited $50k when my stepdad died a few years ago.  I am embarrassed to report that it is still sitting in my savings account; it's the last thing he will ever give me, so it feels like I should use it on something meaningful, not just toss it in with everything else.  But I haven't found anything sufficiently special or memorable to use it for -- because, duh, stuff is just stuff and is thus unworthy as a permanent memorial.  As a result of my paralysis, the money has helped me not one whit towards FIRE.

I will likely inherit a significant chunk from my mom.  But given that she had me at 19 and still runs 5ks in her 70s, it's more like "old age insurance" than "FIRE-enabler."
Laugh while you can, monkey-boy

Shane

  • Pencil Stache
  • ****
  • Posts: 696
Re: how much has inherited wealth helped you on your way to fire?
« Reply #35 on: October 10, 2017, 07:39:38 PM »
I believe that there are many many people reading this thread who have received - or are likely to receive - very significant inheritances. They are not posting because they are working through their issues around inheritances.

^^+1

We have also been fortunate with inheritances. In 2010 my wife's mom died, and we got $80K, which we used to put an addition on our house. In 2015 my dad died and we got another $80K, which we added to our investments. In 2016 we sold everything and FIREd with $900K. So, the $160K in inheritances ended up being about 18% of our total net worth. Eventually we would've made it to FIRE, anyway, but those two cash infusions over the past 7 years helped out significantly.

MrsStubble

  • Stubble
  • **
  • Posts: 163
  • Location: West Chester, PA
Re: how much has inherited wealth helped you on your way to fire?
« Reply #36 on: October 10, 2017, 07:45:34 PM »
$0

I come from a long line of poor people.  Just glad i didn't start my independent years with any inherited debt.  Some of my friends had their identities stolen and abused by their parents before they were 30 and spent years digging themselves out of their parents asshole behavior.
Join Ting and get $25 off a phone or a $25 credit if you bring your own.  Click below:

https://zk3fd144q5b.ting.com/

aceyou

  • Handlebar Stache
  • *****
  • Posts: 1257
  • Age: 34
    • Life is Good - Aceyou's Journal
Re: how much has inherited wealth helped you on your way to fire?
« Reply #37 on: October 10, 2017, 07:55:25 PM »
- College Tuition for my wife was covered by parents...four years at state school.
- Wife's great uncle left us 60k when we were about 25 years old.  We stuck it in the bank and it sat there earning no interest for years, but at least we spent none of it.  Now that we understand how FIRE works, we have a plan.  Because we both have access to 403's, 457's, and a Roth IRA due to being teachers, we can shelter 83k/year combined.  So, we are doing that, and are currently living off the remainder of our paycheck and that 65k until the 65k is gone.  We think we can keep this level of savings up for about 2.5-3 years before it's gone, and we'll then probably save about 65k/year instead. 
- Other non-money privileges.  My parents are entrepreneurs, and my wife's parents were both teachers.  The unearned privilege we got from being born in the USA to white, educated, relatively wealthy parents is definitely the most important leg up we have had. 

Expected Inheritances -
From DW's father - Nothing.
From DW's mother - somewhere between nothing and a half-million.  She's frugal, but has genes to live till she's a hundred:)  Hopefully she lives to be a hundred, she's a wonderful person.
My Parents - Hard to say.  I'm one of four kids.  I'm not the one who will take over the family business.  It will depend on how the transition of the business works out financially for my parents, how long my parents live (again, hopefully for a long time) and so many other factors)

secondcor521

  • Handlebar Stache
  • *****
  • Posts: 1133
  • Age: 48
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: how much has inherited wealth helped you on your way to fire?
« Reply #38 on: October 10, 2017, 08:09:42 PM »
Directly, nothing.  I left work in November 2015, officially FIREd in February 2016, and my Mom died in June 2016.  I received my share of her life insurance which I stuck in the bank and have used to avoid selling investments to live on.

My Dad is 81 and reasonably healthy.  When he dies, I'll receive my share of his estate, whatever happens to be left after his expenses.  Could be a lot, could be zero.

Indirectly, I received a lot.  My parents were financially capable, so they paid for my undergraduate and graduate degrees, my first car, part of my honeymoon, and part of our first house down payment.  So I was able to get ahead without having things like student loans or PMI to deal with.  I am appreciative and plan to pay it forward to my kids.
Like Overwatch?  Check out this YouTube channel:  http://bit.ly/AgeOfEon

Off the Wheel

  • 5 O'Clock Shadow
  • *
  • Posts: 54
  • Age: 33
Re: how much has inherited wealth helped you on your way to fire?
« Reply #39 on: October 10, 2017, 08:24:07 PM »
We have been incredibly fortunate with inheritances. I grew up in a solid middle class setting and was frankly shocked when my third of my parents estate amounted to around $180K. On my wife's side, her mother passed and left around $300K. We have been informed that via an aunt that passed recently we may be receiving another inheritance.

With these very significant windfalls, we have paid off the mortgage ( we live in a modest house for our area). We have 3 kids currently all in college, we are using the inheritance money to put them through college.

We plan to set up college savings plans for future grandchildren. Basically pass it along.

The psychology surrounding inheritances is quite complex.I am not surprised to see very few people coming forward with information about inheritances received. There can be guilt, embarrassment even. A feeling that this was not "earned" money, and shame that may accompany that. I have certainly had to work through that, and part of me posting this is to help me process our own good fortune.

I believe that there are many many people reading this thread who have received - or are likely to receive - very significant inheritances. They are not posting because they are working through their issues around inheritances.

Thank you for the thoughtful response.

EscapeVelocity2020

  • Handlebar Stache
  • *****
  • Posts: 1478
  • Age: 43
  • Location: Houston
    • EscapeVelocity2020
Re: how much has inherited wealth helped you on your way to fire?
« Reply #40 on: October 10, 2017, 08:33:29 PM »
I used to brag to people in my 20's that I would inherit quite a nice sum.  My parents were frugal growing up, but now drive Mercedes...  My Mom died 14 years ago and I went through a tough time.  Nowadays, I'm the multimillionaire that is still quite frugal, and I'm quite glad my Dad is still around!  Funny how life is, and much a win-win as I could hope for. 
Transitioning to FIRE'd albeit somewhat cautiously...

leighb

  • Stubble
  • **
  • Posts: 100
Re: how much has inherited wealth helped you on your way to fire?
« Reply #41 on: October 10, 2017, 10:10:48 PM »
I agree that there is are a lot of feeling of guilt and embarrassment around inheritances. I know I have a lot of hang-ups around knowing that I did not earn a lot of what I have and question if I deserve what I have.

Without the inheritances I've received: I would not have a paid off house, I would have student loans, I would not have a retirement account, I would not have the freedom to quit one job pursue self-employment and I would still have my best friend. Who I miss everyday.

Villanelle

  • Handlebar Stache
  • *****
  • Posts: 1893
Re: how much has inherited wealth helped you on your way to fire?
« Reply #42 on: October 10, 2017, 10:28:25 PM »
I got $10 or $15k from a grandfather when I was a teen.  I blew it in college.  It helped me zero, and in fact maybe even allowed me to delay maturing and making better decisions for a few years. 

My dad essentially inherited his mom's house, which we then bought form him as our first home purchase.  We were able to get the parent-child exclusion on property taxes which saved us a fair amount, and because the transaction was done without a relator, those savings were passed along to us.  (Dad just wanted when he would have received after a regular sale.)  I also don't know that we would have bought quite yet if that opportunity hadn't fallen in to our lap. 

We've argued this next point here ad naseum, but I stand to inherit a large amount someday.  (Most likely 7 figures.)  We don't exactly count on it, but we don't totally ignore it either.  It s a mental safety net to our FIRE plans, I guess.  Hopefully we will be long FIREd before it comes to us, but it will absolutely be lifestyle-changing if and when it comes.  What that will mostly mean will probably be more travel for us, and more to leave to our favorite causes when we die.  (We have no kids and our current will leaves most of our estate to charity.)

Linda_Norway

  • Handlebar Stache
  • *****
  • Posts: 1613
Re: how much has inherited wealth helped you on your way to fire?
« Reply #43 on: October 11, 2017, 12:12:56 AM »
We did once receive a financial gift from my parents in law. That was approx 22K in the year 2000. We got it right after we had bought a house. We used to pay off the extra taxes that you need to pay when you buy a house. We had forgotten a bit about those and other extra costs when moving.
It was very convenient at that moment. Since then we have been saving more than twice that amount per year, so it did not make a real impact on FIRE.

marty998

  • Magnum Stache
  • ******
  • Posts: 4814
  • Location: Sydney, Oz
Re: how much has inherited wealth helped you on your way to fire?
« Reply #44 on: October 11, 2017, 12:33:18 AM »
I believe that there are many many people reading this thread who have received - or are likely to receive - very significant inheritances. They are not posting because they are working through their issues around inheritances.

I think you'll find most people here are happy to brag about their hard work / efforts that have realised gains, but regarding inheritances yes it's different.

I refrained from commenting here up to now, not out of guilt or embarrassment, but I recognise that not everyone is fortunate enough to have received gifts of significant size. Call it misguided sparing of feelings if you have to.

I have received a substantial sum from my parents already, and it is likely when they eventually pass, there will be a sum left to me which exceeds my total requirements for FIRE, (well after I FIRE, so in essence I'll probably have twice the stash I eventually need)

There is also the fact that many people will be comfortable taking about their own financials, but it's a step too far to start talking about other peoples financials (your relatives) if they have not given permission to do so.

Small matter of privacy and all those quaint notions from pre internet days.
« Last Edit: October 11, 2017, 02:45:32 PM by marty998 »

Raenia

  • Bristles
  • ***
  • Posts: 379
Re: how much has inherited wealth helped you on your way to fire?
« Reply #45 on: October 11, 2017, 05:54:09 AM »
Inheritance: 0

Being raised by responsible people who prioritized their children's well being, independence and education: Priceless

+1

I fully expect to be FIREd before either of my parents or my partner's parents die, so anything we happen to inherit will go to charity or to our children.  It's looking like there may not be much from either direction, though, so even if we wanted to we couldn't plan on it.

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 1204
Re: how much has inherited wealth helped you on your way to fire?
« Reply #46 on: October 11, 2017, 06:57:27 AM »
It depends on what you mean by 'inherited wealth'.  E.g., A lot of peoples' parents buy them their first car/help with car expenses, etc.  I wouldn't really consider that 'inherited wealth', though it definitely gives you a leg up in job opportunities.

On my husband's side, no financial support, apart from them purchasing him his first car in high school.  Once he left at 18, he was self supporting in all ways.

On my side, nothing in HS other than the usual room and board.

After I graduated HS, there were 2 notable instances of indirect support that could not have happened if the parties involved weren't financially well off:

1) Loan free college.  A wealthy great aunt paid my undergraduate tuition.  2 years at out of state rates, after which I worked to establish residency so I could stretch her gift to cover the rest.  Also, during undergrad, my father gave me a small monthly stipend, just enough for me to make my cut of rent and groceries.  I worked in the summer; and after my first 2 years, I worked part time all the way through school. I paid for 3 years of grad school by myself.

This was a HUGE help because it allowed me to not work as a freshman/sophomore during classes, but just focus on managing my class and study time and getting oriented to being out on my own in a different state. And I was able to graduate with no student loan debt.

2) My grandmother gave DH and me 10K after we finished graduate school, which we used as a down payment on a house.  We were employed and stable by that point, but we were able to buy a couple years sooner than we otherwise would have.

That's it for big things.  My parents paid for several plane tickets when I was a freshman and sophomore, helped out with particularly expensive textbooks (Kearney and Peebles for range management classes cost >100$ book back in the early 1990s ...ah memories)...and my Dad memorably snuck my POS car off to have new tires put on it when the old ones were messing the alignment up and I was temporarily out of a job right after graduation.

I feel very fortunate.  I had substantial enough help to get me through freshman and sophomore years with minimum anxiety, and allow me to figure out how to build my cash flow and manage on my own by the time I graduated.  And no student loans? That was HUGE.  My youngest sister went to college much later, and initially did not manage her money as well.  She ended up with the 'standard' 30K of loans and it is a huge drag on her finances now.

As to inheritance to come?  Very possibly nothing.  My father was worth several million a few years ago, but circumstances ate up more than half of that in less than 5 years and he is only in his mid 70s.  Whereas ten years ago I might have anticipated maybe inheriting 200K, I know better now than to expect anything.  I just hope his money lasts at this point.

ETA: As some people above have noted, we also now support some parental units in an ongoing way...I'd estimate maybe 50-60K spent so far and about 5K per year onging.  So in a way, the free undergrad education I received is now being 'paid forward'...or 'backward' depending on how you look at it.
« Last Edit: October 11, 2017, 07:06:54 AM by wenchsenior »

Fishindude

  • Handlebar Stache
  • *****
  • Posts: 1493
Re: how much has inherited wealth helped you on your way to fire?
« Reply #47 on: October 11, 2017, 07:03:50 AM »
I inherited 5.5 acres of a 100 acre farm, then purchased the balance from relatives.  This was helpful as it lessened the amount needed to purchase the farm.
Otherwise, no other inheritances, but like many others have indicated I was raised by a very money savvy parent which was pretty priceless.

Livingthedream55

  • Bristles
  • ***
  • Posts: 250
Re: how much has inherited wealth helped you on your way to fire?
« Reply #48 on: October 11, 2017, 07:10:52 AM »
My mom is 86 and her estate will be quite modest;  I might inherit $50,000 someday.  I've never planned on it or counted on it to make FIRE a reality.



jezebel

  • Handlebar Stache
  • *****
  • Posts: 1289
Re: how much has inherited wealth helped you on your way to fire?
« Reply #49 on: October 11, 2017, 07:18:08 AM »
I find it weird that people on this thread who have received inheritances assumed that many others have too.  I'm not sure it's very common in most middle class families.

We have received no inheritance money thus far and don't expect to.  My parents have decent pensions but they are blowing through money quicker then they ever did while working and are starting to express concern about their finances.  They might have their small house left, and possibly a vacation cottage to split among us three siblings and several cousins.

However, they have given me financial support over the years - paid for most of undergrad costs but for 12K (none toward grad) and my wedding and provided a lot of free child care.  That counts for a great deal but it isn't inherited.  H received a small inheritance from his grandmother when he was much younger, so that's been gone for years.  His parents are living on SS.