We’re excited about the possibility of building our own pickleball court, especially now that Senay is moving up in the rankings. It seems like a fun way to encourage family activities, but I had no idea how expensive it would be! The concrete alone is turning out to be a significant expense. Thankfully, our HOA is relaxed about these kinds of projects, and since we have space on our property, we’re moving forward with getting quotes. If you're interested in helping mix and pour the concrete, I can offer you $10 an hour!
On another note, we made a bit of a mistake with our grocery delivery. We’ve been using Walmart’s delivery service, which is fantastic and very convenient. However, we handed the phone over to our three boys to select the groceries they wanted, and when the delivery arrived, we realized we should have double-checked the cart before hitting "buy."
Why Wait? The Case for Giving Your Kids Their Inheritance Now
Over the next 30 years, an estimated $30 trillion will be passed down to heirs. Yes, that's thirty trillion dollars—thirty followed by twelve zeroes.
But today, I want to challenge the usual way of thinking about inheritance. Instead of leaving your kids a big lump sum after you're gone, what if there was a better way?
"But We Don’t Need the Money Right Now..."
When I sit down with clients to build a long-term spending plan, I often hear something like this:
"Dave, we understand what you’re saying about spending in retirement, but we don’t need the money right now. We’ve lived frugally for 40 years. We don’t want to start spending just for the sake of it."
And I always say the same thing:
"That’s great! That discipline is exactly why you’re in the position you’re in today. But if you don’t use your money, someone else will—whether it’s the government, your heirs, or someone else entirely. The real question is: What is this money for?"
Here’s something I want you to remember:
No one will ever be a better steward of your money than you.
Read that again. You worked for it, earned it, and appreciate it in a way no one else ever will.
The Problem With Inheritances
We’ve all seen it: An inheritance that was supposed to be a blessing ends up causing nothing but trouble.
•Kids fight over the money.
•They waste it.
•They don’t respect it because they didn’t earn it.
•It changes their work ethic, their relationships, and sometimes their entire character.
It happens in sports, too. Young athletes sign multi-million-dollar contracts and blow through the money in just a few years. The same thing happens with lottery winners—many say winning was the worst thing that ever happened to them.
Why?
Because they weren’t prepared for that kind of wealth.
So, what’s the alternative?
The Better Way: Give While You’re Living
Instead of leaving your kids a lump sum after you’re gone, why not give them part of their inheritance now—a little at a time, over the next 20 or 30 years?
Now, I’m not suggesting you spoil them or enable bad habits. You’re still the one in control. But this approach has some serious benefits:
Benefit #1: You’re Helping When They Actually Need It
Your kids are likely in their 20s, 30s, or 40s—the most expensive and stressful years of life.
•They’re buying homes.
•Raising kids.
•Paying off student loans.
•Trying to build careers.
That’s when they need help the most. By the time they inherit your money in their 60s or 70s, they’ll either already be financially secure, or it won’t have the same impact.
Benefit #2: You Get to See the Impact
Wouldn’t it be better to see the joy your money brings while you’re still alive?
•You get to attend your granddaughter’s piano recital because you helped pay for her lessons.
•You get to see your son’s relief when he can finally replace the old clunker that keeps breaking down.
You don’t just leave a legacy—you get to experience it.
Benefit #3: You Can Guide and Teach Them
You can see how your kids handle money by giving in small amounts over time.
•Do they make wise financial decisions?
•Do they appreciate what they receive?
•Are they acting responsibly?
If they blow through it, at least you know now—not after it’s too late to do anything about it.
Benefit #4: It’s Tax-Efficient
From a tax perspective, smaller gifts over time are often much smarter than a lump-sum inheritance.
•Taking small withdrawals from your retirement accounts spreads out your tax liability.
•Many heirs don’t properly use a "stretch IRA" and end up cashing out large sums, triggering huge tax bills.
For example, if your heir cashes out a $500,000 IRA, they could owe $150,000 or more in taxes—money that could have been saved with better planning.
(Mega) Benefit #5: You Teach the Next Generation About Generosity
Your kids will learn from your example. If they see you being generous, they’re far more likely to become generous themselves. And that means your legacy won’t just be measured in dollars—but in values that last for generations.
A Quick Note on Giving
Sometimes, a cash gift isn’t the best way to help someone.
•Maybe it’s a down payment on a house instead.
•Maybe it’s paying for your grandkids' education.
•Maybe it’s an all-expenses-paid family trip to create memories together.
Just be mindful that if you help one child, the others might expect the same. Open communication is key to avoiding resentment.
Final Thoughts
At the end of the day, your money is meant to be used—not just hoarded or left behind as an afterthought.
Yes, you should ensure you never outspend your savings—but once that’s covered, you get to decide how to use your wealth to enrich your life and the lives of those you love.
And you don’t have to wait until you’re gone to start making a difference.
So, what are you waiting for?
Be Blessed,
Dave
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