I want to explain to you what I mean. Think back. What could you do with €2,000 or even €10,000 in your mid-20s? 2000 euros would probably be enough for a month’s vacation. With €10,000 you could probably go halfway around the world. Why? You were happy with cheap youth hostels and long train journeys didn’t bother you. They didn’t care if there was only pasta or rice. Now €2,000 can be enough to rent a holiday home for a week. Of course, it is related to the price increase, but also to age. When you’re in your 40s or 50s, you have slightly different requirements when it comes to accommodation and food.
The example shows that the utility of money decreases over time. A lot can be achieved at a young age with little money. Even a small amount can add up to a big experience. As we grow older, this changes, our health, commitments and satiety often interfere with many things.
When does money make the most money?
So, if you believe that the purpose of life is not to have the largest possible balance sheet, but that money is simply a tool, then inheritance should be considered when money can have the greatest impact. Purely statistically, your children will be about 50 years old when it comes time to inherit (women have their first child in their 30s and life expectancy is about 80 years). You might ask yourself if the money will still be of the greatest possible use, or if another time would be better (a big trip after high school or college, help with home financing, etc.).
What I’m saying is, if you wait until you die to pass your wealth on, you risk passing random money to random people (because who knows if your kids will still be alive by then, how tragic that is). would be). Wouldn’t it be better to turn off autopilot and make a plan for when the kids will benefit from your generosity? If you leave everything to chance, you increase the likelihood that the inheritance will come too late to do much good in your children’s lives.
Hedging risks instead of saving blindly
I can understand if you are afraid of such a step. Because, of course, no one knows what will happen next. You may need money because you need care, for example. But for most of these emergencies, there are insurance policies that cover such risks, including private supplementary care insurance that pays a daily care allowance. And I’m not saying you should part with all of your savings.
My call is clear. consider whether it really makes sense to keep your assets together until you die, or would it be better to give some of them to your children beforehand? Not only that, getting the money early will probably help even more. You can also see what is happening with it and enjoy the happiness of your children.
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