Have you ever thought that the choices we make now can have generations-long consequences? In the case of some Baby Boomers, decisions that they consider practical & reasonable could leave their kids & grandkids without what they deserve in terms of financial security and care they need.
They’re not always the right decisions, but they reveal the struggle between personal needs and generational legacy. In this list, I will share with you 11 such choices some Boomers are making that may leave their children with nothing.
Spending Down Retirement Savings
Boomers are living longer than ever before & that means they’re burning more of their retirement accounts just to stay alive. And rather than pass wealth along, many will find themselves relying on their children to survive if they run out of money.
Relying Heavily on Reverse Mortgages
Reverse mortgages indeed let Boomers cash in their home equity, but the flip side is that it doesn’t leave their kids with a real estate inheritance. Once the loan is due, often the house is sold to repay it, with little or no residual value to be passed down.
Not Having Life Insurance
Boomers who skip life insurance to save money are putting their families in a corner. Without a net, they could leave their children with debt, funeral expenses & medical bills that their estate won’t cover.
Selling Family Assets
Many Boomers sell heirlooms, antiques & other assets when money is tight. This can be necessary, but it robs their children of a literal attachment to their family’s legacy or the ability to draw upon that inheritance in the future.
Avoiding Estate Planning
Many Boomers lack wills & estate plans. Without specific instructions, their assets might end up involved in tens of thousands of dollars of litigation or shared in ways they never would have intended. And this neglect can leave their children only confused & stressed.
Carrying Debt into Retirement
Boomers who come into retirement in deep debt tend to pay for it with the bulk of their income & savings. Credit cards, mortgages, personal loans, all of it wipes away what inheritance their children might’ve received.
Living Beyond Their Means
There are still people who are tight on money, but refuse to scale back their lifestyles, who don’t stop going on vacations, going out for dinner & buying designer clothes. Even if they think they’ve deserved it, it usually costs their savings and leaves very little behind for their children.
Neglecting Long-Term Care Insurance
Healthcare & assisted living costs are increasing rapidly, robbing savings of decades in just a few years. Boomers who fail to budget for these might leave their children without any potential inheritance or funds to help pay for healthcare.
Gifting Money Too Early
Some Boomers give their children large amounts of money as gifts, in the hopes of supporting them. Generous as it may be, this leaves many Boomers broke when they are old, forcing them to rely on those same kids for support, creating more financial stress for everyone.
Ignoring Rising Inflation
Failure to capture inflation also brings down our purchasing power over time. If Boomers don’t revise their retirement plans or savings plans, they’ll run out of cash faster than they’d anticipated & leave their kids without any savings cushion.
Choosing to Retire Too Early
Premature retirement can be hard on savings if people underestimate how long they’ll live or how much they’ll need. Early retirement often means dipping into funds that could have been left for their children & leaving the next generation without financial support.
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