Should We Keep Working to Boost Our Son’s Inheritance?

One of the toughest things about being a parent is that you never stop caring for your children. Whether they’re three years old or 33, you want to do everything you can to make your kids’ lives easier and be there to support them emotionally and financially.

In this Reddit post, we have a couple with a big conundrum. The couple is 48 years old and have been lucky to secure high-paying jobs. As a result, they’ve grown their net worth to $8.1 million.

Their goal is to retire at the end of the year and either move overseas or abandon their high cost of living area in favor of someplace more affordable.

They have one child in college who’s gearing up to graduate debt-free, and they’ve set him up with money for graduate school. The child also has a stock portfolio worth about $250,000, which the parents presumably set up for him.

The husband thinks there’s no issue moving forward with retirement. From his point of view, they’ve set their child up with plenty of money and a great start to young adulthood.

But the wife feels guilty. The way she sees it, they’d be leaving the workforce during their prime earning years when they could be making more money to set their son up with a larger inheritance. The wife also knows that the son is probably not going to pursue a very lucrative field after graduation.

It’s a tough situation. But it’s important for the couple to focus on their own needs and not just their child’s.

When you want what’s best for your child

It’s easy to see where the wife is coming from. Even though she and her husband have given their son a great start by funding his college education, it’s tough to make it on your own these days.

Living costs are high. Rents are exorbitant. And the housing market just doesn’t seem to be cooling off enough for entry-level buyers to have a fighting chance.

If the son isn’t going into a particularly well-paying field, then he might face certain struggles even with a paid-off degree and a $250,000 cushion. And it’s easy to see why the wife would want to do even more for him. But that also doesn’t mean she hasn’t done enough already.

Why this couple should move forward with retirement

It’s generous for the wife to want to leave her son the largest inheritance possible. But she has to realize that her son is most likely ahead of the game compared to his peers.

Many of the son’s friends will no doubt be graduating college with thousands of dollars in loans. And many will also probably be starting out with zero savings.

With a $250,000 portfolio, the son has access to an emergency fund and a down payment for a home. It may not be a down payment on a $1.5 million home, but it’s a down payment nonetheless, or the start of one.

Also, it’s not the parents’ problem that the son is looking at a career that doesn’t pay so well. People make career choices like that all the time, and the son has to take responsibility for his choices.

That might mean having to live in a smaller home and not taking nice vacations every year in exchange for a career that’s more rewarding or perhaps less stressful than another.

All told, with $8.1 million, this couple is in a strong position to retire early. And if that’s what they want to do, they should.

But one thing the family could do together is talk to a financial advisor. An advisor could help the son make smart decisions with the money he’s been given so far. An advisor can also give the parents advice on estate planning so they’re able to feel more comfortable with their decision to end their careers now despite giving up a lot of earnings.

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