Author Topic: how much has inherited wealth helped you on your way to fire?  (Read 8025 times)

the_fixer

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #100 on: October 12, 2017, 11:25:59 AM »
$0

My family has nothing

risky4me

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #101 on: October 12, 2017, 11:33:42 AM »
  Large inheritances ( think trust fund) make for lazy, loser adults.
I disagree with this generalization. It really depends on the character of the person receiving the gift. In the same family I have seen both extremes. One individual will never gain control of their finances- any money they received was leveraged and increased their debt so it did have the effect Bucksandreds describes. In the same family another sibling  continues to live frugally and I suspect any inherited money will be passed on to following generations in the form of educational funds.
  My wife and I have received gifts through the years, they are never anticipated and we never include them in our financial planning. The best gift from our parents is, through their frugality, they have enough to support themselves through end of life. I have many friends that are not so fortunate and are faced with worrying about their own retirement care as well as their parents. We feel very fortunate and appreciate our situation.
family frugality phrase 'Use it up, wear it out, make it do or do without'

Jenny1974

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #102 on: October 12, 2017, 11:34:07 AM »
When my Dad died, I got about $5,000 from an old retirement plan my that still had my sister and I as beneficiaries.  Dad was remarried and I knew he fully intended his wife get most of the money but had just failed to update his beneficiaries when he remarried.  I ended up giving my stepmom half of my share and put the other half in an account for our daughter.  Seemed like the right thing to do.

As for my Mom, she's still around and very healthy.  I expect and hope she and my stepdad spend their last dime on parking at the funeral home.  I'd certainly prefer that to them leaving me a big chunk of money.  I'm just fine on my own.

PoutineLover

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #103 on: October 12, 2017, 11:37:47 AM »
I don't expect to receive anything when my parents die, they don't have too much saved up and will probably end up having to spend most if not all of it in retirement. I did receive $1,000 when my grandmother passed away, that helped pay for my solo eurotrip the following summer. My parents helped me pay for school by saving up for me my whole life, that ended up being about 20k and helped with my expenses and paying off some of my debt. They occasionally send gifts and help me pay for plane tickets to visit them, amounting to maybe $500 or so per year. I'm very grateful for everything they have done for me, and if they need help later on I would do what I could. I'm a little worried about their relative unpreparedness for the future, especially my dad if he can't work as long as he expects to and doesn't rein in his unnecessary spending a bit, but I'm hoping for the best.

Imma

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #104 on: October 12, 2017, 11:47:27 AM »
As our parents are still alive, partner and I have not received an inheritance. None of them are wealthy, so we don't expect large inheritances. Two of our parents own their home, but they will have mortgages until they're in their 80s. I think the largest inheritance will be from my mother. I would be extremely surprised if it was more than Ä50.000 though. She is frugal so I don't believe she would waste any of her money, but she doesn't have a large pension so she she'll probably have to spend her savings once she retires. I paid my own way through university but she did gift me Ä2000 when I bought my first home and loaned me some more. It's a soft loan, I don't pay interest, it's not written down anywhere, but I do pay her back. The balance is now Ä3000.  She has good genes so I fully expect her to live for another 30 years.

We know the death of at least one parent will cost us a lot of money. That parent doesn't have any savings or insurance. We'll have to pay funeral costs and empty their (rented) property. This is one of the reasons why we keep an emergency fund. Emergencies like these do happen unexpectedly and I have seen people being bankrupted because they couldn't afford the funeral of a penniless parent.

elaine amj

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #105 on: October 12, 2017, 12:10:21 PM »
Inheritance from my parents moved up my FIRE date by 5-7 years. My twin sister and I split 2.9M plus a couple of cars and other estate items.
As a teenager, I resented my Dad's frugal tendencies. My neighborhood friends belonged to beach clubs/country clubs, parents had fancy leased cars, fancy clothes, bikes etc. We had 10yr old station wagons, refurbished bikes, modest clothes, and played golf at the crappy public course. Now I feel beyond grateful and blessed. I was able to leave my burnout career behind at the age of 44. I think most of my parent's principles rubbed off on my sister and I, and we both adhere to a lot of the MMM "rules". Probably the coolest thing was nudging  my sister to read the JL Collins stock series, and now she has a low cost lazy portfolio. Also, my wife really enjoys her job, so we live off of her salary and the stache will probably grow to a ridiculous number.
Sidenote: My sister still lives in our small hometown and ran into one of the spendypants neighbors a few months back. He lost his long time job as editor when the town newspaper went bellyup. They had to downsize to a small apartment and both work menial part time jobs in their mid 70s.

Thank you for this. I am currently struggling with whether I am being unfair to my own children. We have the resources to live a much spendier lifestyle and my teen son in particular will sometimes ask why we don't have a nicer house, expensive gadgets, etc. I've been feeling a bit of guilt that we are practicing all this frugality so we can benefit and retire earlier - with no benefit to them. This makes me realize that our frugality can also benefit them in the distant future.

To be fair to my son - he's learned a lot about not spending unnecessarily and even resists the temptation for a professional haircut and insists on surviving my clumsy attempts even though his hairstyle is very important to him (this is the boy who fusses for ages with wax in the bathrooms most mornings haha).

Anyway, to drag this back on topic - we haven't received any inheritances as yet. When DH's grandma passed, she left a small amount of money. However, my FIL insisted on keeping all of it (my SIL was not happy!). He hasn't spent it and plans to pass it on when he in turn passes. I think he feels his children (at that time in their 40s) won't be responsible with the money or something.

My mother did invest $10k into a business DH and I were involved in when I was 20. Even though she knew it was headed for disaster (the main partner was very good at talking big - we expanded too quickly and even a couple of profitable locations weren't enough to keep things afloat). I had poured most of the money from my decent summer job into it and lost that all too. At that time, she said it would be a good business lesson for me and she was right.

When I was younger, I had expectations of a reasonably hefty inheritance. Both my parents were wealthy. Unfortunately, things have changed a lot for them in the last few years as they are about to enter their 70s. My mother racked up some debts counting her chickens before they hatched and will now have just enough to manage for the rest of her life (hopefully). My father has never been saver and probably spent most of his (very generous) income. He hasn't worked for nearly a year now and funds are tight. I really, really hope he can manage for the rest of his life - what resources I have are going to my mother's support. That said - if I have to work so he won't be destitute, I'd do it.

Moral of the story - you just never know with inheritances. My DH and I were joking that we will likely receive larger inheritances from his (low income) parents than from my (formerly wealthy) parents! We'd never have dreamed of this scenario even 5 years ago.

Frankies Girl

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #106 on: October 12, 2017, 12:33:51 PM »
I still hope no one would feel ashamed to receive an inheritance of any kind.

I do understand minimizing the sharing of financial info to avoid awkward in-person/family situations...but on a forum with financial badassess...I think you're safe.

It would seem like it should be that way, but then again, on this very thread one poster discounted another poster's entire well-written comment simply because she had received an inheritance. So, I guess you're not safe anywhere!


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dude

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #107 on: October 12, 2017, 12:35:36 PM »
My dad died broke as shit (my uncles paid for his funeral). My stepdad passed recently and I inherited two guns and some tools. Mom is alive and well, but lives on SS and a very small pension; she's got no assets to pass along.  So basically zero for me.

My wife's parents, however, gave their house to my wife in one of those elderly law type deals in the event they got real sick and needed to spend down assets to get on Medicaid. It's worth @$300k. But they still talk now and again about selling it and moving, which kinda freaks me the fuck out, because I'm worried it will be a taxable event for us. In addition, her dad gifted us over about $20k, again more for asset-shifting than anything else, and we pretty much just keep it invested with the understanding that they may need it some day. Same goes for the house. So in the end, she may or may not inherit those assets, and possibly like $40k-$50k more -- but the old man has never been invested in the market, having preferred to use a CD ladder to provide some extra income from the interest payments back when interest rates were normal. That strategy has been killing him the past decade, though I think they've more or less ratcheted back their spending to account for the lost interest income (which wasn't much to begin with because his entire balance never exceeded $70k from what I've seen).

At any rate, we've earned and saved more than enough to not need any inheritance money to be financially secure.

pachnik

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #108 on: October 12, 2017, 12:43:56 PM »
Yes, my parents sold their old house and gave me $50,000.00 about 15 years ago.  I used all of that money as a down payment on a small condo and lived there until my husband and i got together.  It was a bachelor suite and not appropriate for the two of us.  Since I wasn't permitted to rent it out, I sold it and invested the money.  The money has grown to about 3 1/2 times the original amount.   

My parents are fairly well off so I have no worries about them funding their retirement.  They retired at about 62 and have been retired for about 20 years now. 

TornWonder

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #109 on: October 12, 2017, 12:47:54 PM »
When I was a toddler in the 80s, my grandfather passed away and left me 400 shares of stock worth around $2,000 at the time.  With dividend reinvestment it has grown to over $50,000.  From a risk standpoint I should sell it, but the stock holds sentimental value, mainly to my mom.  I'd be fine if the company went bankrupt as it would reduce my FIRE date by less than a year.

My parents were very frugal, and with both parents working, they lived off of a portion of the smaller of their two salaries and saved the rest.  Although they have a nest egg comfortably in the seven figures, my mom continues to work because she enjoys her job, and they both live off of her salary and continue to save even more money.  After she retires, their pensions and SS will more than cover their current living expenses, so I expect their stash to continue growing.   Personally I would much rather that they blow it on travel and experiences, but they seem very set in their ways at this point and I'm not sure if that will change going forward.  I don't really need any of their money, but I have a feeling that my brother and I will be the recipients of a sizable inheritance from them.

jmecklenborg

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #110 on: October 12, 2017, 02:06:09 PM »
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.

It's easy to say that if there are two types of inheritances that they are either "incidental" or "life-changing", with reference to dollar amount.  But what really changes it is *when* someone receives the money, since a substantial sum received as a young adult defines one's life.  If I receive $2 million when I'm 75 it won't matter much since I will have my own money and I'll be too old to enjoy it.  But if I had inherited that same amount at age 25 and knew I was getting it at age 15 my life would be completely different. 

Where I live, it is plainly obvious that inheritances are fueling the gentrification of formerly black neighborhoods.  It's not just the condos but the businesses themselves.  I personally know three people who opened boutique businesses and family money paid for each of them.  One is a microbrewery, another is a bakery, an another is a trio of trendy restaurants. 

How do those of us with student loans and no inheritances on the horizon start capital-intensive businesses?  We have to beg those who did inherit money to invest and share ownership. 





Trudie

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #111 on: October 12, 2017, 02:47:15 PM »
I still hope no one would feel ashamed to receive an inheritance of any kind.

I do understand minimizing the sharing of financial info to avoid awkward in-person/family situations...but on a forum with financial badassess...I think you're safe.

It would seem like it should be that way, but then again, on this very thread one poster discounted another poster's entire well-written comment simply because she had received an inheritance. So, I guess you're not safe anywhere!


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Bucksandreds

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #112 on: October 12, 2017, 04:47:05 PM »
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.

It's easy to say that if there are two types of inheritances that they are either "incidental" or "life-changing", with reference to dollar amount.  But what really changes it is *when* someone receives the money, since a substantial sum received as a young adult defines one's life.  If I receive $2 million when I'm 75 it won't matter much since I will have my own money and I'll be too old to enjoy it.  But if I had inherited that same amount at age 25 and knew I was getting it at age 15 my life would be completely different. 

Where I live, it is plainly obvious that inheritances are fueling the gentrification of formerly black neighborhoods.  It's not just the condos but the businesses themselves.  I personally know three people who opened boutique businesses and family money paid for each of them.  One is a microbrewery, another is a bakery, an another is a trio of trendy restaurants. 

How do those of us with student loans and no inheritances on the horizon start capital-intensive businesses?  We have to beg those who did inherit money to invest and share ownership.

Trendy non profitable businesses are a way Iíve seen an inheritor try not to appear lazy. ďBarreĒ exercise store Iíve seen by someone I know.  Probably a few hours of real work a week but enough to make them look like theyíre doing something to most people.  I also know a stay at home dad who utilizes a nanny. He expects to inherit multiple millions in the next decade and is spending down his Trust fund in the meantime. Less than half of the people I know with real family money do anything other than try to look not lazy. Iíd probably be a bum if I received or knew Iíd soon receive 7 figures while young. There are obviously exceptions. Iím just comparing it to the general population. We all know itís true. The responders to my earlier post can get overly sensitive about it if they want to. They know that Iím right.

CU Tiger

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #113 on: October 12, 2017, 06:29:29 PM »
No inheritances on either side. Expect nothing from my parents. They have plenty to keep themselves in comfort intil they die, but by the time they go there will not be a lot left.

My husband will most likely inherit a lot, but it will probably happen when we are in our 70s, his parents are from long lived families. So we are not counting on that for early retirement!
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aceyou

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #114 on: October 12, 2017, 06:43:18 PM »
Thank you for this. I am currently struggling with whether I am being unfair to my own children. We have the resources to live a much spendier lifestyle and my teen son in particular will sometimes ask why we don't have a nicer house, expensive gadgets, etc. I've been feeling a bit of guilt that we are practicing all this frugality so we can benefit and retire earlier - with no benefit to them. This makes me realize that our frugality can also benefit them in the distant future.


Quite the opposite, you are giving your children a valuable gift with the example you are setting for them. 

I'll start off by saying that although you forgo a "nicer house, expensive gadgets", etc.  I bet you still provide your children with a safe home that is warm in the winter and reasonably cool in the summer.  I bet they never go hungry, and I bet the get lots of love and attention from you.  But in addition to that, you are teaching them that the correct amount of stuff to own "enough stuff to be comfortable and really happy", and not "as much stuff as you possibly can".  Your kids are very lucky to have you raising them.

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #115 on: October 12, 2017, 07:43:26 PM »
Quote
We all know itís true. The responders to my earlier post can get overly sensitive about it if they want to. They know that Iím right.

Your argumentative strategy of generalizations and anecdotes interspersed with insults is a lot less convincing than you think. 

elaine amj

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #116 on: October 12, 2017, 09:21:17 PM »
Thank you for this. I am currently struggling with whether I am being unfair to my own children. We have the resources to live a much spendier lifestyle and my teen son in particular will sometimes ask why we don't have a nicer house, expensive gadgets, etc. I've been feeling a bit of guilt that we are practicing all this frugality so we can benefit and retire earlier - with no benefit to them. This makes me realize that our frugality can also benefit them in the distant future.


Quite the opposite, you are giving your children a valuable gift with the example you are setting for them. 

I'll start off by saying that although you forgo a "nicer house, expensive gadgets", etc.  I bet you still provide your children with a safe home that is warm in the winter and reasonably cool in the summer.  I bet they never go hungry, and I bet the get lots of love and attention from you.  But in addition to that, you are teaching them that the correct amount of stuff to own "enough stuff to be comfortable and really happy", and not "as much stuff as you possibly can".  Your kids are very lucky to have you raising them.
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Acorns

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #117 on: October 12, 2017, 09:56:30 PM »
I expect my spouse and I will inherit somewhere between $0 and $500,000, give or take a couple hundred thousand, so really I have no idea and I'm not depending on anything. Our parents are all still young (in their 60s) and come from long living families, so I could be in my 60s or 70s by the time they pass, and there are so many variables which could affect their finances between now and then, namely healthcare. Hopefully my parents and my inlaws have many healthy years left to enjoy spending time with us and their grandkids, and if I do get a large inheritance in my 60s, it won't really matter because I will already be FI/RE. Anything we inherit will probably be put towards our children's (or grandchildren's) education.

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #118 on: October 13, 2017, 12:53:22 AM »
Quote
We all know itís true. The responders to my earlier post can get overly sensitive about it if they want to. They know that Iím right.

Your argumentative strategy of generalizations and anecdotes interspersed with insults is a lot less convincing than you think.
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Re: how much has inherited wealth helped you on your way to fire?
« Reply #119 on: October 13, 2017, 02:42:28 AM »
I estimate that between 10 to 20% of my wealth came from direct money gifts from my family + the results of investing it (but do you count the capital gain as coming  from your family or from you at this point?).
However it's difficult to really quantify beyond money gifts. My parents gave me a good life, largely contributed to my education choices and paid for all of it and more. I'd need to really calculate how bad my situation would be if I had had to take a loan for parts of that.

marty998

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #120 on: October 13, 2017, 04:24:59 AM »
Quote
We all know itís true. The responders to my earlier post can get overly sensitive about it if they want to. They know that Iím right.

Your argumentative strategy of generalizations and anecdotes interspersed with insults is a lot less convincing than you think.
Yup.

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TornWonder

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #121 on: October 13, 2017, 07:38:12 AM »
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.

It's easy to say that if there are two types of inheritances that they are either "incidental" or "life-changing", with reference to dollar amount.  But what really changes it is *when* someone receives the money, since a substantial sum received as a young adult defines one's life.  If I receive $2 million when I'm 75 it won't matter much since I will have my own money and I'll be too old to enjoy it.  But if I had inherited that same amount at age 25 and knew I was getting it at age 15 my life would be completely different. 

Where I live, it is plainly obvious that inheritances are fueling the gentrification of formerly black neighborhoods.  It's not just the condos but the businesses themselves.  I personally know three people who opened boutique businesses and family money paid for each of them.  One is a microbrewery, another is a bakery, an another is a trio of trendy restaurants. 

How do those of us with student loans and no inheritances on the horizon start capital-intensive businesses?  We have to beg those who did inherit money to invest and share ownership.

Trendy non profitable businesses are a way Iíve seen an inheritor try not to appear lazy. ďBarreĒ exercise store Iíve seen by someone I know.  Probably a few hours of real work a week but enough to make them look like theyíre doing something to most people.  I also know a stay at home dad who utilizes a nanny. He expects to inherit multiple millions in the next decade and is spending down his Trust fund in the meantime. Less than half of the people I know with real family money do anything other than try to look not lazy. Iíd probably be a bum if I received or knew Iíd soon receive 7 figures while young. There are obviously exceptions. Iím just comparing it to the general population. We all know itís true. The responders to my earlier post can get overly sensitive about it if they want to. They know that Iím right.

So you're against inheritance being passed on to family members and believe it should be redistributed through the government, but also believe that people that receive inheritances redistribute that money by being lazy spendthrifts and opening non-profitable businesses.  Sounds like maybe you're just jealous?

StarBright

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #122 on: October 13, 2017, 08:07:41 AM »
. . . . .

When my MIL dies we will inherit a significant, life-changing sum.  But, to be honest, we don't factor this into our FIRE calculations and continue to save 50-60% and make plans without it.  Still, it is always in the back of my mind.  I think of it as a buffer if we need more cash in the future to buy housing (instead of borrowing in ER) or to help lighten the blow of post-retirement health care costs.  It's hard to get my head around it, really.

I guess we've consistently used the money to buy our freedom and for the most part haven't spent it on stupid shit.  I suspect that someday we'll have way more than we know what to do with, and we're already talking about how we will use it for charity and the common good.  I look forward to the day when I can set up a donor-advised fund and basically give money away in my local community.  I want to do it while I'm alive.

Your post resonated VERY much with me. We are diligently saving and putting our heads down and living way below our means in our mid-30s. But my father has stated his goal is to leave my brother and I each around a quarter million as an inheritance and my in-laws recently shared their estate plans with us and I was blown away to see that they have a multi-million dollar real estate portfolio to split between three kids. We're not counting on any of it and will continue to save. But if everything turns out as my parents and in-laws plan and our investments turn out well, then we will have more money than we know what to do with.

Reading this thread has made me super aware of how even small inheritances can build into generational wealth. My great grandparents left my grandmother some land, she sold it and padded her retirement funds, when she passed she left a slightly larger inheritance to my father who has always been a millionaire next door type (but grew up food insecure) - my dad's goal is to leave us a fairly significant amount which will be more than we likely ever need . . .  etc.   My husband's family has a very similar story.

If my kids don't blow it they will each potentially have multi-millions of dollars to pass on to their own children/charity/whatever. That is sort of an astonishing thought!


clarkfan1979

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #123 on: October 13, 2017, 12:01:41 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.


I have issues, but I do not have any issues of guilt over a possible inheritance.

If you ever spent 5 minutes with my step-mom you would realize that she is not happy until all the money is gone. My dad was never great with money, but he always spent less than he made. She has been able to convince him to spend more than they make. When they were both working, my dad could make up the difference by working over-time. However, they retired about 6 years ago and working overtime is no longer an option.
 
They inherited about 300K from her mom about 5 years ago. About 100K is left. I am not looking forward to the next 2-3 years when the money is gone. They are retired and live on a modest pension and social security. However, they probably spend 20-30K/year more than their income.

They were gifted 300K during the worst housing market crash in Florida history. They lost 120K on the first house, they managed to break even on the second house and the rest of the money is being pissed away on a lifestyle they cannot afford.

During the same time, I bought a foreclosure in Florida for 95K and put 16K into it. It's currently worth 235K. They thought I was crazy when I bought that house. They wanted me to buy in a more expensive neighborhood that I could not afford, like they were doing.

If I was gifted 300K at the same time, my wife and I would have bought 7 additional rental houses in the same neighborhood for about 85K to 100K each. Our total portfolio would be worth about 1.75 million with 500K in mortgages. We would have $7200/month in rental income after vacancy, repairs and management.

I would have turned that 300K into 1.25 million. However, they managed to pretty much lose it all.

The good news is that my step-mom stopped giving me advice about money. The bad news is that the conversation has shifted into how they are now always broke and drop hints that they might need some help in a few years.

I can't wait.

talltexan

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #124 on: October 13, 2017, 01:16:55 PM »
I'm not proud of my behavior during my 20's. Within a thirty-month period, I received a $10,000 inheritance, and married my wife, the latter of which included financing a new car and spending like a sailor on our honeymoon. I could have swung things $60,000 (would probably be $100,000 now) if I'd only been aware of mustachian principles then.

lemonlyman

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #125 on: October 13, 2017, 01:45:03 PM »
I got a $1,000 CD from my great grandmother when I was 14. I spent it on a plane ticket to Europe when I was 22.

I don't expect to receive anything from my parents. They've struggled. I do imagine my wife's parents leaving something behind. Her father is very good with money. I have no idea how much. They've just said it'll be split evenly among their four children.

wordnerd

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #126 on: October 13, 2017, 02:10:25 PM »
I don't expect to inherit anything and certainly not anytime soon. My parents did pay for my undergrad and gave me my first car (not fancy at all) and helped me launch in a lot of ways before I was 21. So, I've definitely benefited from parental help on my road to FIRE, though not an inheritance.
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mathlete

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #127 on: October 13, 2017, 03:37:05 PM »
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.

Yeah, this was my thought too.

No hate for anyone who gets an inheritance, but it goes to show that there are levels to this, "middle class" thing, and maybe it even serves to put a dent in the whole, "anyone can do it" narrative.

Sometimes people die with some money. It has to go somewhere. I'm sure that most inheritances are small, and hopefully they come very late in life. But I think that sometimes, people don't realize just how far ahead they are. Even MMM.

He describes his situation as, "normal", which is at least more defensible than average. But he talks of things like $10K in tuition assistance from his parents, and borrowing money from his sister to buy a car at 23. Now, it's not that I think that this is a lot of money, mind you, but I think that sometimes, people take for granted, the things that they have access to.

A mental rundown of a comparison between MMM and my girlfriend: At age 23, he had people to borrow money from. At age 19, my girlfriend's dad hit her up for a loan to pay back his (dramatically underfunded) 401k so that he could avoid a penalty. Now, in our late 20s, we are the only household from her immediate family that has any savings, whatsoever. We're buying nieces and nephews (from older siblings) school clothes, giving out gas money so that family members don't miss their work shift and get fired, etc.

She didn't come from a destitute family. Just a low, to middle income family who, like much of America, sucks with money and lived paycheck to paycheck.

This isn't to say, "woe is us" or anything. We're incredibly lucky and on a terrific trajectory. I guess I don't know where I'm going with this, except to say that I think goal setting and teaching and stuff, is probably best done with the subject in mind. You're likeness to Tony Robbins is going to dictate how close to Tony Robbins-like results you can get.

Kay-Ell

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #128 on: October 13, 2017, 09:33:36 PM »
When I was 19 I inherited $8,000 from an old lady at church who died without any children.  She left 8k to all of the young, single people in her church, and $15,000 to all of the married couples she was friends with.  I used $1,000 toward a $4,000 used car that I purchased a few years later (and kept for 8 years).  Then I used the rest toward the down payment on my first house.  While 8k isn't a lot of money, that house is now an income property that has had the single biggest impact on FIRE for me to date.  So thank you little old church lady, I'm sorry I'm agnostic now, but your gift is still very much appreciated.

Step37

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #129 on: October 13, 2017, 10:43:29 PM »
When I was 19 I inherited $8,000 from an old lady at church who died without any children.  She left 8k to all of the young, single people in her church, and $15,000 to all of the married couples she was friends with.  I used $1,000 toward a $4,000 used car that I purchased a few years later (and kept for 8 years).  Then I used the rest toward the down payment on my first house.  While 8k isn't a lot of money, that house is now an income property that has had the single biggest impact on FIRE for me to date.  So thank you little old church lady, I'm sorry I'm agnostic now, but your gift is still very much appreciated.

What a cool story! It must have been such a surprise to everyone. Kudos to you for making such prudent choices. I was not so wise at 19...
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elaine amj

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #130 on: October 14, 2017, 11:20:03 AM »
In a funny coincidence, my FIL just handed DH $4k in cash "just because" . He gave my BIL some cash too. He's in his 80s now and is probably feeling his age and so starting to hand out money.

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zinnie

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #131 on: October 14, 2017, 11:53:46 AM »
Inherited knowledge has helped me infinitely more than inherited money. Having my dad set me up with an eTrade account at a young age didn't hurt for learning about investing.

When I was a kid, my grandfather gave me $1k of stock, a bunch of savings bonds that ended up paying for a portion of my college tuition, and my dad gave me $6k of his company stock. Those gifts got me started investing--I managed it from about the age of 13 and grew it to 20k by the time I was in college.

As an adult, I got I believe four $10-14k cash presents or inheritances. All invested immediately.

I'm glad I haven't gotten more because I really want FIRE to be mostly of my own doing. I wouldn't feel as accomplished if it was just handed to me now!

boarder42

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #132 on: October 14, 2017, 11:55:27 AM »
There are a few ways to look at this

1. monetary giving which was the subject of this post - i've been getting 10k a year from my parents for 3 years now and it will increase.  Does this help - Yes - does it help ALOT - No - i dont count on it as FIRE income and the 10k a year is just a nice little extra to get.

2. My parents have money. it allows me to take what many here would percieve as risky.  i dont know that everything i've done to date in my life would have been as easy to do with out knowing i've got some support on the back end from them as needed - conversly my parents treat me similarly - they know we have money.  I see this as the first start of building wealth for generation to come. 

3. they taught me to be conservative with money and how to shop.  alla the MMM grocery thread is how i always shop for groceries.  This was worth alot.  They also taught me about investing - though incorrect i learned alot and then found this.

so there are many ways in which "wealth" can be used to help you on your way -
1. passed on wealth
2. security
3. knowledge

Its unfortunate that most of these ideals are tied to people who already have money.  In the end Financial Literacy is the biggest issue facing society today - it help cure most of the other ailments we have.
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BTDretire

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #133 on: October 14, 2017, 02:20:19 PM »
When I was in my twenties, my mother gave me a life insurance policy they bought when I was a baby, I turned it in for the cash value (about $1,100) and put that into Vangard.
 When She died I got a $2000 life insurance policy payout.
 On the other hand for the ten years after my dad died, when I visited at Christmas time, I always gave her between $1k and $3.5K to help her out.
 I was also left half of her house my sister the other half. I kind of expected my sister to start
paying me rent or a purchase payment at some point, but it's going on 6 years now.
  I did visit recently and she did check with a bank about getting a loan, and an appraisor did an appraisal. But it's been 6 weeks since and she doesn't respond to my calls. I suspect she wants to live their another winter. Her and her girlfriend spent a few years living in a van,
 so a house is nice.
 She is broke but working and will have a hard time qualifying for a mortgage on half the house. She has a girlfriend living with her, I suggested she write a contract with her girlgriend to show the girlfriend paying her a fair rent and she could glide by with plenty of income. I don't know how that went over.
 If she ever pays me off, I''ll get $30k or $35k of inheritance. It won't make any difference in our retirement though.


calimom

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #134 on: October 14, 2017, 08:14:58 PM »
^^^ Well you sound like a good guy, BTDRetire. I'm sure it is nice for your sister and her girlfriend to have a roof over their heads after living in a van. Hopefully they are able to make an effort in getting a new loan. If not, you know that you're doing the right thing not making this a huge issue.

My own inheritance story is a slightly different one than most here. When my young husband died 10 years ago, I received his almost 6 figure 401K as his beneficiary, which rolled over into my name and has grown. His company's life insurance was for one year's salary, so I received a check for right around $105,000. Another private insurance policy was for $50K. I used our money market savings to put a down payment on a house in a much more LCOL area than pricey Silicon Valley where we'd been living, and where we could never quite afford a house of our own; we'd had an expensive rented house. The majority of the remaining funds, I put into Fidelity, taking some out quite cautiously about a year later to buy a small business, which has double in size, and I "paid" myself back over 5 years. Another insurance payout came from the uninsured motorist policy about a year after my husband's death,  I invested in a rental property which cash flows well today.

I'm certainly no rich widow by anyone's definition, but I like to think I have carefully used and saved this money well. I've tried to make good (and admittedly imperfect at times) decisions to ensure my 3 kids and I stay in the middle class.Roofs need replacing, septic tanks need redoing, kids need orthodontia. I've witnessed financial horror stories by other widows who've made dreadful decisions and hopefully have avoided that. I do sometimes, quite futilely, wonder what our financial situation would have been in my husband had not died. He was on an upward career trajectory, was a smart software developer who was fascinated by his work. I've almost always been employed in one enterprise or another, so I think we'd be doing pretty well at this point in time. We lived well, but never beyond our means and I'm sure we'd have accumulated a decent stache.

About 5 years ago I reset my mortgage to coincide with my youngest child leaving the nest. So at age 50 or so I should have 3 paid for pieces of property, a business that could be sold, and retirement and investment savings. I may be on track for FIRE, but unclear as to the future and what that might bring.

AnnaGrowsAMustache

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #135 on: October 14, 2017, 09:36:42 PM »
My family have nothing of worth to pass on. No money, no knowledge about money. Zip. The only thing they've managed of value is to be an example of how not to do money, family, life generally.

PizzaSteve

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #136 on: October 14, 2017, 11:10:20 PM »
Be careful what you disclose about wealth on the internet, especially if you share other personal information.  innocent seeming questions can elicit data that helps thieves target.
All posts are opinions of the author subject to independent verification by the reader.  No representations of fact are asserted regarding commercial products or services.

Pizzasteve is planning to mostly be inactive and avoid debates.  In the event of a rare post, no need to reply or quote if you expect a response, as i am posting information an opinion meant to stand on its own.

marty998

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #137 on: October 14, 2017, 11:33:36 PM »
Be careful what you disclose about wealth on the internet, especially if you share other personal information.  innocent seeming questions can elicit data that helps thieves target.

That's always a worry, which stops me from posting too much personal information here. But if someone digs hard enough then you can always be found - as we discovered on another thread dedicated to a bit of online sleuthing.

Hula Hoop

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #138 on: October 15, 2017, 01:17:18 PM »
I talked about this on another thread, but I grew up solidly "middle class" (I know that that's not a precise term).  My parents are both educators.  They are divorced and both live in cities with insane housing prices.  They are older and have very solid government pension plans.  My dad, in particular, has always been very frugal/cheap.  For example, most of his clothes are from Goodwill, he renovated his apartment mostly himself in the early 80s and hasn't upgraded at all since, vacations were camping when I was a kid.    He doesn't own mod cons like a dishwasher or a microwave and his fridge is from the 1950s.  I worked from when I was around 15 and funded my own education.  My parents never bought me a car or helped financially with college and I never asked them to.  But I'm very privileged in the sense that I always knew that if I had big financial issues my parents would probably help me out - luckily I've always been frugal and OK with money.  My DH grew up very poor so he has never had this luxury.  Also, I've never had to bail out members of my family -as so many others have had to do.

Fast forward to now, and I recently found out that not only are each of my parents' houses worth a huge amount of money because of the insanely hot real estate markets in each of their cities, my dad also has a lot of money in an investment account.  He knows very little about money but he has a financial planner provided by his pension plan who seems to have done very well with it.  And I guess all his natural penny pinching and frugality was worth it.  He's like MMM but more hardcore in many ways and without the financial literacy.  I was really shocked to find this out recently - could have knocked me over with a feather.

Anyway, as outlined on my other thread i'm not letting this knowledge influence me.  My husband earns very little and I earn low wage compared to many on this board.  We're trying to stick to our budget and live frugally by not owning a car, eating cheaply etc.  But I imagine that if and when (hopefully not soon) either of my parents passed away, we'd be in a position to FIRE immediately, which is a very weird thought.

I totally get the negative comments about "trust fund babies" and people born into wealth on this thread.  I've had these thoughts too particularly when I'm having a hard time at work and wished that I could change careers to something less well paid (or at least not be the breadwinner for my family anymore).  As someone who had no idea that my parents have money (and their money is mainly tied up in the houses where they live anyway) this is a very strange position to be in.
« Last Edit: October 15, 2017, 01:19:44 PM by Hula Hoop »

Bird In Hand

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #139 on: October 16, 2017, 07:09:59 AM »
My parents are very frugal with good pensions, so they're likely to leave something behind.  But we intend to FIRE well before my parents are likely to die, so any inheritance does not factor into our financial plans.

talltexan

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #140 on: October 16, 2017, 12:15:59 PM »
Inherited knowledge has helped me infinitely more than inherited money. Having my dad set me up with an eTrade account at a young age didn't hurt for learning about investing.

When I was a kid, my grandfather gave me $1k of stock, a bunch of savings bonds that ended up paying for a portion of my college tuition, and my dad gave me $6k of his company stock. Those gifts got me started investing--I managed it from about the age of 13 and grew it to 20k by the time I was in college.

As an adult, I got I believe four $10-14k cash presents or inheritances. All invested immediately.

I'm glad I haven't gotten more because I really want FIRE to be mostly of my own doing. I wouldn't feel as accomplished if it was just handed to me now!

When  I was 21, a family friend self-published a book about investing (this was right at the turn of the century). She gave me a copy, inscribing it "Remember your Roth".

I just saw my Roth balance pass $100,000 for the first time. She's been dead for 13 years, but I hope she'd be proud, even though I used mutual funds and all of her investing was in individual stocks.

Erica

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #141 on: October 16, 2017, 01:10:03 PM »
Our inheritance certainly factored in our plans. Recently received 50K (w. 128K inheritance still to come)


46K applied to down payment on house currently going thru escrow + 4K for used Solar Panels/new batteries=50K

Our house = rental income. 1/2 acre yard sports two designated areas where RVers can live F/T. Includes a back private entrance to private bathroom w/shower & shared laundry room+ mud room. Also each RVer will have an additional 20x20 storage shed & fenced area for gardening. About 12 wks out of the year during winter, they'll need their own generators for power. Will charge a flat $460 mo ea.

$1290 would be our House Payment vs our current $1200 mo. We live in California.

$920 mo rental income
 -$60 rental expenses
-----------------
$860 mo towards $1290 house payment=$430 House payment. Longer drive to work is the downside


$300 extra transportation costs
$430 house payment
--------------------
$730 monthly payment -VS-
$1200 Current housing
Save $470 mo.

50K gives us a nicer home, better air quality, in a touristy recreation area (great hiking, biking) w. 1/2 acre while saving $470 mo

It's probably the Mtn Biking Capitol of California and we are Mtn Bikers so it's perfect~and starting Nov 1st, I'll be getting a small raise at work of $50 per week.


Remaining $128K Inheritance
50K towards a Condo for our son
70K Re-invest in Real Estate
3k moving expenses
5K in safe

RV'ers may want to rent out their abodes some on airb&b during the summer for 14 days or less -Special IRS rule/benefit-. We could follow suit renting our house out so maybe a trade can be had. This plan above is probably illegal but due to this being a nice touristy area w/ 60% of the homes being vacation homes, it is acceptable.


« Last Edit: October 16, 2017, 01:57:19 PM by Erica »

Erica

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #142 on: October 16, 2017, 01:52:02 PM »
The stories here are very interesting! I especially like Hula Hoops since hers was a surprise
« Last Edit: October 16, 2017, 01:56:22 PM by Erica »

Hula Hoop

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #143 on: October 16, 2017, 04:26:31 PM »
The stories here are very interesting! I especially like Hula Hoops since hers was a surprise

Thanks.  It's made me realize that life is a total crapshoot.  There are so many things, both good and bad, that are beyond our control. 

Goldielocks

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #144 on: October 16, 2017, 07:48:04 PM »
I have an aunt and uncle with no kids, little contact with her family, and only 3 nieces / nephews on our side.   They keep reminding me that I will be getting condo X ($600k), that it is in their will...

They are only 72, acting like they are 92, and it is highly likely that he will die first, she will reconnect with some of her family, and adjust her will at that time... or that they will sell a condo in the next 15 years , or... well, anything could happen.

I don't understand, and it is not helpful for them to live like they are about to die in the next 5+ years.   

Mrs. Fire Lane

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #145 on: October 16, 2017, 08:02:17 PM »
I had a well off family member who paid for my undergrad. I got a scholarship to grad school so I only took a 15K loan for living expenses during the two years it took to get my masters. I paid it off in two years. I donít know anyone my age (34) with my education level, without student loans.

jmecklenborg

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #146 on: October 16, 2017, 10:37:45 PM »
I have a friend whose dad's family grew up in Flatbush, Brooklyn.  It was a poor and crime-ridden area when he was a boy in the 1960s and 1970s.  The fate of the house wasn't much of a concern because it was not of much value.  Grandma is still alive and now the modest house is worth $1 million.  This came as a surprise to the four siblings and unfortunately it has led to a major rift in the family as one of the sisters succeeded in getting the grandmother to rewrite the will so that the house will go to her and her alone.  This sister doesn't even live in the United States anymore.  For whatever reason the other siblings aren't able to reconcile their differences and go up there and demand that the will be rewritten to split the house evenly. 

The irony of the whole thing is that whoever ends up buying the house will likely buy it...with an inheritance.  The $1 million will go to someone who is now an EU citizen and become the inheritance for her kids. 

Jonboyz

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Re: how much has inherited wealth helped you on your way to fire?
« Reply #147 on: Today at 12:12:40 AM »
TBH, inheritance will a big contributor to reducing the number of years until becoming FI by about 5 years.  I have known (and hoped) that this inheritance from my grandfathers trust was coming at some later stage in life, and truthfully I have slacked off and have lost some career ambition because of it. 

That amount will be about $400,000. Also, as an only child l am anticipating additional inheritance from my parents of a similar amount. 

Does inheritance affect my goals and life plans? Probably.