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Well, real life isnt like the movies.
Teach a man to fish, and you feed him for a lifetime?
Turns out Lao Tsus wisdom applies to retirement planning too.
Relying on an inheritance is like getting handed a giant mackerel one time.
This way, youre taking charge of your own financial future doing your own fishing, so to speak.
Taxes Could Be a Factor
While theres no overarching federal inheritance tax, some states levy taxes on inheritances.
If your wealthy great-aunt lived in a state without inheritance taxes, youd be in the clear.
The standards fortaxes and exemptionsvary widely from state to state.
Wills Can Change
Despite what movies and pop songs suggest, love isnt always forever.
Sometimes, even familial relationships can sour.
And when that happens, the will might be the first thing to change.
They were planning on an inheritance from their parents to cover the costs.
There was a falling-out, and the grandparents reneged on their commitment, Dunn wrote.
Now, the middle-aged couple had no money for college, and no money set aside for retirement.
Thats what happens when you make your life someone elses responsibility.
The Amount You Receive Can Change
Ideally, youd want your loved ones to live a long time.
The good news is thatmodern medical technologyoften helps them do just that.
All this life-prolonging care, including long-term care or assisted living, can cost a lot of money.
Relying on an inheritance is risky and leaves your financial future vulnerable to factors beyond your control.
Instead, focus on building your own retirement plan one you could rely on, no matter what.
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