Should I keep working to potentially double my kids’ inheritance, or is retiring now a selfish move?

Retiring many decades ahead of the traditional retirement age may be seen as selfish by some, impressive by others, and a combination of the two by many. The important thing is that a prospective retiree does what’s right for them and their family without paying too much attention to the personal beliefs of others. Undoubtedly, it’s not at all selfish to spend one’s own money on oneself in retirement, especially if one is burned out, unable to find work, or is no longer able to work.

Indeed, the earlier the retirement, the less cash will be left behind for an inheritance. While I’d encourage anyone looking to embrace the FIRE (financially independent, retire early) movement to find the balance that makes them feel the best, I’d also not be afraid to crunch the numbers with a bit of help from a wealth planner or a financial advisor who acts as a fiduciary. At the end of the day, one doesn’t need to pick between early retirement and leaving a fat nest egg behind for heirs. Arguably, one could achieve both, and that’s exactly what many retirees should aim to do.

As always, finding the optimal balance can be tricky. Either way, it’s worth exploring in greater depth before putting any retirement plans or dates in stone.

Just because you can retire early doesn’t mean you ought to

Just because you’ve got a nest egg large enough to support you for the rest of your life doesn’t mean it’s time to retire sooner rather than later. Even if you’ve achieved financial independence, it’s still worthwhile to work if one finds a greater sense of meaning or if one just loves their job (think Warren Buffett, who tap dances to work at the age of 95). For most, it’s tough to keep tap dancing to work every day, especially as the list of demands and responsibilities grows longer.

Still, the cure for overwork doesn’t have to be retirement. Arguably, stepping back (fewer hours), stepping away (finding another job), or making a lateral move (changing careers) could be a wise move that would allow one to keep building a nest egg that’s sizeable enough to leave loved ones with a heck of a lot more.

In any case, this Reddit user, who’s in their early 50s, has two children for whom he wants to leave a sizeable inheritance, too. However, at the same time, he’s looking to pursue a “Chubby FIRE” type of early retirement, which entails an above-average lifestyle versus the more traditional FIRE. For such an individual, one needs to ask themselves if they prioritize retirement or leaving a fatter inheritance behind for when they’re gone.

No need to resort to extremes

Now, one doesn’t need to resort to extremes like never retiring and working until the very last day, as some folks choose to do. And it also doesn’t have to entail retiring tomorrow, with a withdrawal rate that’d ultimately leave a bare-bones sort of inheritance behind. Inheritances tend to be viewed differently by different people.

Should heirs be entitled to one? Or should they be thankful for whatever amount ultimately comes their way? I’m inclined to skew towards the latter, as the expectation of a fat inheritance, I believe, can incentivize unhealthy financial decisions.

A worthy trade-off: How about ditching Chubby FIRE for normal FIRE?

Personally, I’d look to communicate the situation with the family and a wealth planner to gain feedback, which may very well influence the right balance one will take between early retirement and saving up more. Furthermore, there are other compromises that can be made that don’t entail staying at work longer or skimping on the nest egg. Since our Reddit user is pursuing “Chubby FIRE,” they’re looking to sustain a pricier lifestyle.

By living a more modest lifestyle (think moderate FIRE or even lean FIRE), one can retire earlier and have a great sum to leave behind. For someone looking to pull back on the materialistic things, such a downgrade of lifestyle just makes sense in an effort to retire early and leave behind more for loved ones.

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