To spend or to save? This is a question that can come up throughout a person’s life. This includes during retirement. For retirees, this question can take on a slightly different form: Should I plan to spend most or all of my nest egg or should I plan to leave some behind to give as an inheritance to my loved ones?
There is no universal right or wrong answer to this question. What individuals may want to do on this front can be affected by many things, including:
- Their goals
- Their desires
- Their needs
- Their personal situation
- Their health
- Their family situation
- The health and circumstances of their family members
So, people may want to give careful thought to this question, and what answer would be the best fit for them, as they plan and go through their retirement. It can be wise for retirees to make plans to ensure they are able to meet their needed expenses during retirement. From there, they can make plans for what kinds of things to do with what remains after such expenses.
When retirees plan to leave an inheritance to loved ones, it can be important for them to take steps to ensure the inheritance would go to the people they want it to. Estate plans can help with this.
It can also be critical for retirees, whatever they decide on the spend or save question, to be prepared for the unexpected. For example, while a person may plan to spend his or her whole nest egg, there still could be the chance that he or she might pass away with a significant amount of the nest egg left. Such individuals might want to have a plan in place for what to do if they leave behind an unexpected inheritance.
So, whatever a retiree’s plans or goals regarding retirement and inheritances, it can be important for him or her to have an estate plan tailored to his or her goals, situation and needs. Estate planning lawyers can help individuals with building the right estate plan for their unique circumstances.