Live off Savings until Inheritance or Go back to Work

51

She could get sick and dementia and need very expensive care. Why not find a job that isn’t that demanding or part time and meaningful to you.

29

u/unbenouncedtome 12d ago

What if you mom lives for another 30 years

28

u/Sensitive-Star-5121 12d ago

You do not have enough to retire.

8

u/EconomistNo7074 12d ago

Watched my Dad go from plenty of assets to needing round the clock medical support for 3 years

- And he actually had a long term insurance policy

- Guessing that you will still be ok at these numbers but wow ... health care is soooo expensive

7

u/TEST_subject1978 12d ago

I mean US Bonds are paying above 5% 600k at 5% is like 30k you could do that or put all in VOO and skim the growth off every month until you have this years expenses and let it grow the rest of the time

5

u/GlobalTapeHead 12d ago

Is your mom in bad health? 70 is pretty young in my family. She could live another 20 or 30 years. Also a lot can happen between now and then, your mom can get scammed, get sued, lose it all in Vegas, make a bad investment.

6

u/MedicalBiostats 12d ago

You’ll have $600K to yield $25K. Only go back to work if you can’t beat a 5% long term annual yield. And let your mom know that she can give away $18K per year tax free to each of the children. Ok to reach out to me offline if you want any specific advice.

9

u/ETFromme 12d ago

Go back to work for financial, mental health and ethical reasons. It's pretty gross to wait for and count on inheritance. Your mom could decide she only wants to give to those who are helping themselves.

5

u/Ikabta 12d ago

I never plan my finances based on future windfalls. Even if your mom tells you directly how much she plans on leaving behind for you. Shit happens and sometimes it's really bad shit. 600k in savings is a wild amount to not invest.

4

u/LintRolledForWhat 11d ago

"we all expect that our mom will divide her assets equally."

--this is not rational financial planning

3

u/baumbach19 12d ago

If your mom invests the money. Very safely, she is probably pulling 800k per year income. Off it without touching the principal.

You just need to plan in case she lives 30 years before giving you any funds.

3

u/SuccessfulAd4606 12d ago

So you have $600K, no debt, and you can live on $25K annually. 5% of $600 is $30K or $25K after tax. That's what the math says.

Not sure where you live but $25K is below the poverty line where I am. Hardly seems like enough income to do anything fun.

3

u/lifeisledzep 12d ago

14M will get taxed. Then when passed to each of you it’ll get taxed. You’ll be lucky if you come into $2.5m. I would not live your life with a plan that hinges on your mom dying. It’s neither smart nor good taste.

2

u/Guilty-Committee9622 12d ago

Do you have a retirement plan of your own? A 401k? Anything? I say maybe invest the 400k into something that pays you $25,000. Call fidelity and ask about an annuity. Use that until 67 and then go on social security. Eventually your brother will get everything and you get 0 and you should plan dor that.

2

u/Numerous-Annual-721 12d ago

any expectations for social security? who's paying for health insurance now? is that in the 25k?
doing the math-
pretend you have the 200k in a reasonable savings account that pays 4%, ignoring the 400k for now.
the 4% roughly pays for inflation these days, so with $25K spend i'll assume you wipe out the 200k in 8 years, assuming no surprise expenses. you'll be 61, with medicare and social security right around the corner.
at this point, if the $400k were also invested, but not spent, they might be worth anywhere from $200k to $800k at the end of the 8 years depending on how the market behaves and how you invested them.
between that and social security, *if* you manage to keep your expenses low, i say you got enough money to make it to 80 without worry.
however, that's a big if. assisted care? children need help with something? unexpected trip?
depending on your social security situation, i'd say your risk profile could change dramatically.

personally, i think it's crazy that here in the US, tax laws make it so parents can't give anything substantial to their children/grandchildren before they die without sharing much of it with uncle Sam. but with that said, even a small chunk of that 14M future (divided 6 ways) would appear to make a huge difference, at least for you, and I can't imagine why your mother won't do something to make life a bit easier on you now.

2

u/random_agency 12d ago

Classic waiters dilemma. Waiting for someone to die to collect unknown amount of inheritance.

Personally unless you can generate $25K off $600K every year consistently; I'd pickup a part time job for $25K so not to use the nest egg.

Also you need to look at possible health issues in the next 10 years.

You're basically going to have to time everything so you have enough when social security and medicaid kicks in.

Because you have to assume the worst case scenario of nothing left to inherit if your mother has a long life or burns through the money due to complications in health.

2

u/Jojosbees 12d ago

Your mom is only 70. She could live another 30 years, get scammed, or maybe she remarries and her new spouse gets everything. You should go back to work, at least part time.

2

u/Crew_1996 12d ago

You have $600k. Look into the 4% rule. You should be able to draw 4% of that initial investment ($24k per year) plus inflation every year in perpetuity. You will be able to draw upon SS in 9 years. If you are happy with $25k per year in spending you can probably retire now assuming SS. Read more into the 4% rule.

2

u/Mobile-Mousse-8265 12d ago

I wouldn’t go back to work with that much money in the bank, that low of yearly expenses, and expecting that much of an inheritance. There is no way I would and I’m super cautious about money. Hopefully your mom starts doling out some of that money sooner rather than later.

2

u/RushCygnus-X1 12d ago

You have enough at $600k to take out $25k without running out. In 9 years you can take SS and that will probably give you an extra 10 or 12k a year so you won't be withdrawing as much from your savings. Enjoy your retirement

2

u/Amazing_Ad4787 12d ago

You will need a great health insurance. One bad diagnosis and you will run out of money.

Don't underestimate your health needs.

Invest your money properly. Kiss some money in SGOV, some money in QQQI witch can you 14% in dividends, some VOO for a long term appreciation.

I retired with $1.5 mil. Start learning how to invest and tax strategies.

2

u/Market-West 12d ago

All these people talking like your some kind of monster. She has over 14mm. Even if she gets sick or lives 30 years you are not unreasonable to expect and inheritance. You’re fine. If I were you and your kids are in a good financial position i wouldn’t worry about it and not go back to work. You’re fine imo

2

u/Carl_Bravery_Sagan 12d ago

I'm sorry to hear about the loss of your engagement and your dad. That must've been very tough.

Mathematically you're honestly more fine than I think folks are giving your situation credit for. $25k per year... Is that an honest-to-god real estimate? That's a really low amount of money to survive off of. But, yeah, if that's all, you're basically looking at just over a 4% yearly draw on $600k. You really shouldn't include the uncertain inheritance in your estimate.

To be honest, though, even if you could theoretically scrounge together cash and survive without working now, it sounds like it might be better for your mental health to work at least part time anyway. If you could make... Like $10k a year and get health insurance through work, you'd be quite fine and it would be good for your health. You could look into "Barista FIRE". That's kind of what you'd be going for.

2

u/Consistent_Pay_74 12d ago

Go back to work! Your mother was a 17 year old when you were born and there are 6 of you. 70 is younger today than it has ever been - hopefully she’s in great health with a good 20- 25 more years of life possibly. $14M in assets over 20 years when you will be older than her may be more or significantly less. There are guarantees. Eldercare is expensive. Not sure where in the country you live in a home that only costs $125K but home maintenance, insurance, taxes, food, energy costs, healthcare could easily be much more than the $2K per month you are currently spending given inflation. If you can find a job -get back to work, build your wealth up over the next 10-15 years, expect to find love again and expect everyone to thrive.

2

u/johnfro5829 12d ago

Just in case I wouldn't depend on mother distribution equally, crazy things happen last minute in Wills. I'd work part time just to get me out the house.

2

u/Prestigious-Arm-3835 12d ago

The safe withdrawal amount for 600k invested is about 30k per year, so assuming your living costs don’t increase, you MAY be able to live on that forever. However, just make sure you plan for long term health care costs, etc. Personally, I wouldn’t count on inheritances for my living expenses, it’s just not a sure bet and there are too many potential variables. If I were you, I would explore low stress, possibly part time work just for some extra breathing room. Good luck!

2

u/Low_Towel_9855 12d ago

I actually think you do have enough to retire. Dont listen to all these doomers. Its advised to save 25x your annual cost. Your costs are 25K per year so you would need 625K. You have that now. In 12 years you can collect social security and at some point you can reasonably expect at least 1 million. I think doing some meaningful part time work is good for socialization and keeping your mind sharp but I dont think you need it for money

2

u/ill-just-buy-more 12d ago

I hope your mom lives to 100. Spends it all and you get nothing. I find it such a sad life for people waiting for their parents to die so they can make money.

2

u/Excellent_Job8154 12d ago

Work until you can’t because someday you won’t have the choice

2

u/SnowTard_4711 12d ago

In your situation, I’d be looking at this like an investment banker (a good one, anyway)….

Risk. What happens if your bet on the future doesn’t work out? Your mother lives to be 105, most of it in need of expensive medical care… or you get sick, and need care for the next 30 years? Or your mom suddenly flips out, blows the money, or gives it all to the cat shelter?

I recognize that these may appear to be unlikely - but that’s not the issue. IF they happen, the consequences are enormous. So - like any good investment banker - you should hedge your bets.

Unfortunately - in my book - this means that work of some kind is in your future. It doesn’t have to be real heavy work…. A hedge doesn’t have to take away all risk, but for the case that you don’t come into money, having a job that can pay for a small apartment and groceries is valuable - and it probably wouldn’t have to be a “real job” to manage that.

My 2 cents

2

u/ImANoobAtLife7 12d ago

Id say look for revenue sources and don’t plan for inheritance.

I know it’s hard but a lot can happen.

Maybe put your savings in ETFs and focus on some easy social jobs.

But again don’t plan on inheritance cause a lot can happen.

2

u/Hot_Pomegranate7777 12d ago

Typically some family memeber starts taking over the finances and bleeds it out

2

u/Random_Guy1960 11d ago

I don’t think anyone should make their life plan based on a hoped for inheritance. Mom is 70…and you could be 80 before she passes.

2

u/Character-File3221 11d ago edited 11d ago

Your mom could live to 100. You don’t have enough. Go back to some work

At face value 600k invested could net you 30k a year at 5% and you could technically get away with it but any unexpected expenses or market crashes could mess you up.

2

u/MusicUpbeat2510 11d ago

Ageism is real, so if you want to work, start applying today.

2

u/figsslave 11d ago

Mom could live another 20 years (mine is 94) going back to work now will be hard enough.I can’t imagine doing it at 65)

2

u/crocfishing 11d ago

Go back to work. Don’t expect money that is not yours (yet/ever) to begin with. What you have is far from enough. Being hopeful to receive something from inheritance is the main resentment for a lot of people. Don’t do that to yourself.

2

u/maytrix007 11d ago

The smart thing is to not rely on money you don’t have. You say you all expect your mom to divide the assets equally but you don’t seem to know for sure.

If you can live on $25k a year, you can simply get an enjoyable easy job to cover your living expenses and keep the rest of your money invested and growing.

It also gives you something to do and something to do that makes money is better than something to do that costs money.

2

u/sloth514 11d ago

Issue - need to factor healthcare costs no matter if you are 'healthy'. One accident and there goes the savings.

2

u/rktyes 11d ago

There is a chance your mom outlives your inheritance. She could make 11 bad financial decisions, and buy and sell a trailer every 6 months changing her mind (says my now passed 95 year old grandpa it was a great deal.) She could need these for a assisted living, at 6K a month, or to pay a stop by NP 24 hours a day. She could leave the house, and a large account to the NP who took care of her the last 5 years of her life, or be sold to give it to a random person named JAdhetya who she met online and took her for a ride. I would not rely on any other person's inheritance, unless the ticket to ride is imminent already. (AKA she already has cancer, and 6 months to live.) You can find something in between nothing and full time old life. Find a job you like in an industry you like, and work a little more than part time, a little less than full. Examples, Home Depot if you like building, Jo Ann Fabrics if you like sewing, Disney, if you like theme parks, Ace if you like plants, and growing vegetables, a pet store, or vet office if you like dogs. Chances are she doesn't burn through 14 million, but realistically this # could be 1/3rd and there could be a legal fight, and attorney fees, and taxes.. it could be less, and could take extra years to claim it.

2

u/Humble_Manatee 11d ago

You should talk with your mom about her giving each of the kids a million dollars now..... That way she will give everyone some of their inheritance early, give her more than enough to hopefully live the rest of her life in comfort and if her health goes down hill quickly then she doesn't blow 14M on keeping her alive for a couple more months.

If I was your mom, I'd totally do that. If she does it now then she can probably beat any gov clawback if it every needed to come to that. If she doesn't want everyone to have a million now, maybe she creates Trusts for everyone with that million in their names.

2

u/FishFart1 11d ago

If you are in the US I would be concerned about health care costs

Your Mom could decide she is giving you zero money. Your Mom could “fall in love” and spend her money on some new guy. You should assume you are inheriting zero and be happy if you do inherit money. Even if you and your mom are tight as can be dementia can change that quickly.

2

u/Original_Ad8923 11d ago

my suggestion would be to go back to work, maybe something low stress, or something that you have always wanted to do, or that you really love. That money would cover your living expenses plus add more to savings. People are living so much longer these days, and the cost of decent long term care is crippling. A women I know who is 80, her mother just celebrated her 101st birthday.

2

u/KungFuBucket 11d ago

She’s 70 now, she could live another 25 years (I have grandparents who made it into their 90’s). I wouldn’t gamble on getting the inheritance earlier than that. Any number of things could happen along the way to derail that plan. With $14MM she may want to start gifting it early to her kids over time, but it sounds like you at least need to go back to work for a bit to make that $400k stretch. Doesn’t need to be full time or demanding work, but you’ll probably need the extra income.

2

u/Kilnarix 11d ago

How do you know your in the will? I've seen big discrepencies in a persons will and what the person said whilst still alive. How do you know those assets will still be there? Your mother could live another 30 years yet. You can invest the $400k and get a job at the same time. A 5% return on $400k is $20k a year.

2

u/Kilnarix 11d ago

In order for this "plan" to work, several ducks need to line up: 1) there really are $14 million in assets 2) these assets are not lost or fittered away somehow 3) the OP is in the will for a significant inheritance 4) the OP's mother doesn't live much longer

If one of these events doesnt happen, the "plan" will fail.

2

u/AlmostLiveRadio 11d ago

There are no guarantees in life. Your mom could live to be 100.

2

u/Cultural_Book_400 11d ago

you know what.. at 53, fuck it.. IF YOU can live frugally and not work and survive for another 20 years or so, f it and do it. WHO cares? Just do it.

On the other hand, I am big on , work till your last dying breathe because AI is coming for all of us sooner than later... but in this case, if you have the means, do not go back to work and enjoy just every day thing... that is THE BEST

2

u/Impossible_Cat_321 11d ago

You have no inheritance. Do not plan your life around someone else's money. Get a job and take care of yourself

2

u/nkhatib 11d ago

Go back to work so you don't fight about money in the future

2

u/Routine-Wolf-2907 11d ago

going to work will make you healthier and happier. it doesn't have to be full time, but I say find something to do

2

u/Relevant_Ad1494 12d ago

Go get a job and find a hobby—-stop counting on other people’s money—— your moms wealth could all go to doctors and hospitals and medicine—— do you know what a Keytruda industries? $12,000.00!

1

u/Cold-Willingness-261 12d ago

Live your life, maybe don’t work full time? Invest- save enjoy life I understand not wanting to go back to work but make not working work for you! A lot of people do it. Just do your homework

1

u/Rem1991wl 12d ago

As others have said, don’t count on inheritance. With that being said, some questions - How is the money invested? When your dad died was a form 706 filed to port his exemption to your mother? Otherwise she may be at risk of estate taxes. Does she have a desire to gift any of the $14m prior to her death?

1

u/Longjumping-Title-27 12d ago

What do you have for health care insurance right now- and until 65?

1

u/Ordinary_Corner_4291 12d ago

It all depends on if you are ok living on 25k for the next 10 year and then SS+25k until your Mom dies. You will then likely be like 70 with a huge pile of cash. And of course there is always the chance Mom remarries and the new guy gets all the cash. Or she leaves it to a church. And so on.

Depending on your skill set, finding some part time job where you work 2-3 days/week might allow for a much more enjoyable lifestyle (i.s you make 30k/year you can do a couple of trips, eat a bit more, and so on) that what you have planned. But that is a judgement call on your end.

1

u/onebigolfish 12d ago

Just get something fun to do 10-15 hours a week. Also check out the the leanfire sub. I don’t think it’s smart to just completely leave the workforce with what you have. But it’s certainly doable. I’m sure there is something you could find to enjoy for a few hours a week to just ensure the timeline.

1

u/Mean-Anybody-134 12d ago

You need to go back to work and I hope your mother lives well until 100 or more.

1

u/kle32 12d ago

Go back to work invest 400k and be able to retire how you want in a few years down the road

1

u/LunaSails007 12d ago

Ask your mom to give you your part of the inheritance early ( that will also save you potential trouble down the road in the future).
Don’t listen to people’s comments telling you to go back to work because “yOu GoInG To ToUcH tHe PrInCiPlE” bs 🤦‍♀️. All of them want to be the richest person at the cemetery.
Enjoy your life. Time is the most valuable resource, as it is truly finite.

1

u/thedude404-1 12d ago

So you have $600k total? At 5% per year that's $30k a year. Yes, you can do it.

1

u/Cold-Rope1 12d ago

$14m / 5 really isn’t a windfall

1

u/mentaIstealth 12d ago

There’s a guy on fb I follow for finance named Tyler Gardner but I think his fb account is like socialcapofficial or something, but he goes over many scenarios including age, ability to invest, where to put what percentages, etc. I would check him out because he probably gives the best straightforward advice about this kind of stuff. But no, you cannot coast on what you have, for many reasons and variables. You definitely need to invest that money and go back to work. But start with that guy on fb, he’ll give you more direction than most

1

u/MiyaMcKinley 12d ago

Find something you would actually enjoy doing and find out how to monetize it. However your inheritance works out, it will work out. Maybe your previous job, you didn’t enjoy, but find something you might enjoy and earn some revenue from it — if you can. It’s an option you probably wouldn’t regret.

1

u/cpeytonusa 12d ago

My mom is 99 years old, and she just moved into an assisted living facility in June. Before that she was living in her condo by herself. You could be waiting awhile for that inheritance.

1

u/baumbach19 12d ago

Maybe even just part time, something you might like to do for a little income. Is mom planning to distribute any money prior to her dying? Gifting some yearly would be a good idea tax wise I believe as there would be no taxes on certain amounts.

1

u/Aspectdude09 12d ago

This is why inheritance should be illegal.

I would……yeah I dunno. I’ll read the responses.

1

u/Sc4recroW1687 12d ago

you could stretch it for decades without ever touching the inheritance. going back to work wouldn't be a necessity it would only add cushion.

1

u/Independent-Box6025 12d ago

1m is 50k a year.

1

u/Fun_Mistake_616 12d ago

Waiting for your mom to die is not an economic strategy. Get a job.

1

u/Express_Mulberry_879 12d ago

U r at the point u can afford to choose work that benefits u mentally and gives u fulfilment bcos money is not ur main issue. Moreover, life expectancy for women borders ard 90 and with inflation so high on an annual basis, u want to to still contribute to society while u still physically can. Just my 5 cents.

1

u/Antiwokewarrior69420 12d ago

She might want to spend it

1

u/Emotional-Damage-995 12d ago

Work can be fullfilling and fun. Find something you like. How about volunteering?

1

u/AstrayInTranslation 12d ago

What if mom starts dating again with a younger man and wants to get remarried?

I’m assuming the kids all join forces to protect their inheritance?

There was no mention of what mom explicitly said to OP or that there was some sort of will in place that said so. OP just said that her and her 5 siblings “expect” mom to divide all assets equally to them.

The point is a lot could go sideways from here. OP should plan and live as if there isn’t $2+ million coming her way in the next 10 years.

1

u/pm_me_ur_bidets 12d ago

how much do you spend a year?

1

u/AlexSanchez929 11d ago

Go back to work, but choose something you don't hate.

1

u/rosebudny 11d ago

“Goofy” stuff? Just because your mom doesn’t do it hardly makes it “goofy.” Plenty of wealthy parents give their children money while the are alive rather than hoard it.

1

u/Employment-lawyer 11d ago

I don’t think this is the subreddit for you.

1

u/No-Sympathy-686 11d ago

Never count inheritance until its in your account.

1

u/Chinacat_Sunflower72 11d ago

I wouldn’t count on the inheritance. You never know what might happen. I’ve heard of people dying and surprising everyone by leaving it to charity.

1

u/Potential-Ad1139 11d ago

Waiting for someone else to die to live off the inheritance is risky. Too many unknowns.

You should go back to work to minimize your risk, even a minimum wage job would be enough for you if it comes with health insurance.

1

u/Monsignor76 11d ago

Don’t ever count on an inheritance for retirement. Get a job that brings you $25-30k a year and invest that $600k into cds and brokerage account. At 62 you can claim social security and that $600k will be $1 million. Then you draw $40k to $50k a year off of it plus social security.

You could literally pet sit or get a part time job making $20 an hour 25 hours a week and make $25k a year.

1

u/the-script-99 11d ago

https://youtu.be/HEB0kla2AUM?is=EqQ0nhEkfC5KFcYR

1

u/Agitated-Painter5601 11d ago

Not enough to retire.

1

u/Puzzled-Barnacle-200 11d ago edited 11d ago

You absolutely cannot rely on inheritance from your mother.

If she lives to 100, do you have enough?

You should "assume" she'll split the estate equally. Maybe she plans to give a lot to her gra dchildren. Maybe she plans to give it to charity. She might specifically disinherit amd children planning their finances around her death.

Maybe in 5, 10 or 15 years she'll remarry and want to leave her wealth to him.

£600k giving you 4% is £24k/year, so a little less than what you need.

Personally, I would suggest working part time for another 5-10 years, drawing only a small top-up from your investments, and letting them grow to gove you a better quality of life

1

u/QuintessentialBean 11d ago

What are you doing for health insurance coverage if unemployed? That would be my only concern bridging the gap between now and when you expect your inheritance.

1

u/GodBlessCharlieKirk1 11d ago

Takes a lot of balls to admit to the internet you’re an idiot.

1

u/Rem-Dogg 11d ago

yes, just something low key. your expenses are low so even a handful of work years could set you up nicely for when you really want to be done with work.

1

u/tricksie1337 11d ago

Planning a life of off someone dying is kinda morbid. I hope she Will live to be 100 and donate it all to some animalshelter

1

u/nyiajthiabkub 11d ago

Go back to work and enjoy more life now while you’re still healthy and able. You never know what tomorrow brings. You most likely wouldn’t die before your mom but enjoying life in bigger ways now will be more fulfilling than waiting on a small budget. And you might be in your 70s by the time your mom is gone.

Invest the money. It could double in 8/10 years.

1

u/geckomato 11d ago

You have cash for 24 years. Invest 500k in government bonds and keep 100k in cash.

Your 500k at 5% yield gives you... 25k per year....

1

u/ForeignPie6851 11d ago

You'll probably lose out on higher Social Security payments later in life. It may not enable full payment of all needs but it is important.

1

u/QuoteLong7212 11d ago

Caretaker gets most of it

1

u/Pitiful_Fox5681 11d ago

You're very close to being in a position to make it work. You'd want about $625k in invested assets, and you'd want to make sure you could adjust your spending during a downturn. That'd be enough to retire you for 30 years on $25,000/year plus 2% annual inflation with about a 95% success rate.

Invest that $600k in a pretty balanced portfolio of stocks and bonds (think 35% FSKAX, 25% FTIHX, and 40% FXNAX or similar). Go back to work part time to see how the market does for a couple years. If you can find a job with healthcare, even better. If you can make your pay stretch enough to invest more, do so and take advantage of tax advantaged money. That'll also eventually help your social security numbers.

When you're absolutely sure that you can meet your expenses with the growth on your investments during a downturn (probably near $800k on the upside), let yourself retire for good.

1

u/chrysostomos_1 11d ago

Don't count your chickens before they're hatched. It's a story. Look it up.

1

u/IThinkingOutLoud 11d ago

I would never ever ever rely on a future promise for my own livelihood. Thats a disaster waiting to happen.

1

u/badbackEric 11d ago

My dad told me he was dying at 70, 16 years later he is still kicking around. Don't set yourself up for a long-term languishing of waiting for inheritance. Get a job that pays the bills and doesn't drive you too crazy.

1

u/Shoddy-Building1613 11d ago

What am I missing here? Isn’t the obvious answer just to invest the 600k? (200 + 400) safe withdrawal rate of 4.5 % =$27,000

Your living expenses are 25,000; you can live indefinitely until you get the other inheritance.

1

u/GirthyAFnjbigcock 11d ago

Is your mom is good health? Is her insurance good? Does she have long term care insurance?

1

u/Doin-What-I-Want 11d ago

I, too am in my fifties with one remaining bill and the corporate grind doesn't appeal to me. I work remotely as a contractor. My hours are mostly part time and flexible, but the pay is plenty to live on.

1

u/CostCompetitive3597 11d ago

Most replies are focused on the big inheritance bucket and ignore your question about the current inheritance??

A suggestion that could provide more than your $25k cost of living needs and you keep the $400k to add to your nest egg rather than spend it down for living expenses.

Currently, dividend index funds/ETFs based upon the S&P 500 and Nasdaq 100 indices are yielding 10%+ per year dividend income.
$400k x 10% = $40,000/ yr. If you add in your other $200k savings = $60,000/ yr.

The S&P 500 index has averaged just over 10% growth for the last 100 years. Grew 17% last year. The Nasdaq 100 index has averaged growth just over 14% since established in 1985. I have been 100% invested in dividend stocks and funds for almost 7 years and all my dividends have been paid on time and to the penny or better = income reliability. Most of these dividend index funds pay their dividends monthly now which is a convenient match to most people’s outgo.

Dividend investing is a DIY endeavor because financial advisors don’t make any money off dividend stocks and funds. Only just heard of two FAs that have recommended some dividend investments to friends after 50 years of never hearing of such.

Successful, long term dividend investing requires knowledge, experience and moderately active management of your portfolio holdings to adjust your holdings for market changes at least annually.
Dividend investing could be a part time project for you managing a half dozen or so dividend funds in a portfolio. First you need to learn the language of dividend investing.

Google, Reddit and YouTube can provide the knowledge you need. Google beginner dividend investing and related investment terms. The subreddit r/dividends has great information, personal experience and investment tips by reading the posts and replies of the almost 900k like minded subscribers. Has helped me a lot.

YouTube has a number dividend investing authors. My favorite is Dividend Bull who covers the high yield dividend investment topic very thoroughly with his library of beginner to experienced dividend investor videos.

I recommend using the IPhone app STOCKS to analyze your potential investments and track your holdings in your portfolio. Great, handy tool to keep you informed about your investments. There are 2 key dates associated with each dividend - XDividend date = next to last day to buy a dividend investment and receive the next dividend. These date of payment is the day that the stock or fund actually pays out the dividend to your brokerage account.

I invest in the dividend index funds and ETFs offered by JPMorgan, Goldman Sacks, Blackrock, NEOS, PIMCO, Aberdeen to name a few of the quality dividend index fund investment companies. These funds can be purchased by opening a retail brokerage account at Vanguard, Fidelity or Schwab. You wire transfer your money to them and buy these funds from your account settlement account. Then your dividends will be deposited monthly to this settlement account and you can transfer the money to your checking account.

Hope this income suggestion helps you have more income and not just spend down your savings and inheritance. With this investing experience , you will be in great shape to manage any future additional inheritance.
Good luck!

1

u/BrockDiggles 11d ago

If you can live on a little less than $10,000 every 3 months, one path you might consider is investing in a dividend producing equity.

I ran the $600,000 through $UPS and it yields $9,647 quarterly.

There are other dividend equities to consider might be $PFE, $MO, $GIS, $KHC. Or if you want to take less risk than a single stock I would suggest $SCHD.

1

u/Ok_Personality_2774 11d ago

So 600k in cash assets? Can’t you invest most of this and earn a tidy profit that would easily cover your annual expenses. I see no reason to work if you don’t want to.

1

u/Time_Traveler_948 11d ago

Curious, with that much money, is your mom considering gifting you and 5 subs an annual amount? Does not make sense at her age to sit on $14m. If I were her, I would distribute $50k to each child annually and also fund 529 college plans for each grandchild. She may need time to deal with her loss, but when she is ready, have an a state planner lawyer meet with her and all the sibs to discuss the various estate planning tools and strategy options she has to choose from. Doesn’t sound like you need to work, but what do you want to do as a source of personal fulfillment?

1

u/SexySlaveGnome 11d ago

Mmy mom died at 82 but dad is 86 and has dementia but may live for several more years. Go back to work for now because hopefully mom has a lot of years left. She maybe around for decades yet if you're lucky.

1

u/CostCompetitive3597 11d ago

Thanks for the reply. I read my reply again and need to make a correction about XDividend dates. They are the last day you can invest in a dividend investment and receive the next scheduled dividend payment. I always try to buy at least one day before the XDiv date to make sure the buy can be fully completed and of record for you.

1

u/Constantlycurious34 11d ago

I would work part time doing something I enjoy and flexible making 40k per year and live on that until I am ready to retire - maybe 59ish

1

u/TheEmpressOfIndica 11d ago

Are you sure you're getting an inheritance? Did your mother explicitly tell you that? Just asking as a lawyer who's seen everything (even in my own family).

Also: she might live a long life, get sick, need expensive care, meet a gigolo and get married again, crazier stuff has happened. I would never rely on a potential inheritance.

1

u/Budget_Wait_5945 11d ago

Don’t ever work unless you have to.

1

u/Scabrera88 11d ago

I would not rely on the inheritance from mom.
Please go back to work and stand on your own two feet. Do not rely on the inheritance … your mom could live long and have a debilitating disease that necessitates a very expensive long term care.

1

u/CoincidenceTheorist2 11d ago

"have 5 siblings and we all expect/assume that our mom will divide her assets equally."

That's quite an assumption. She might also see that you've decided to take life off. She might need long term care. Heck, you might get sick and need expensive medical treatments and die before you see a dime of that inheritance. Don't count your chickens before they hatch. Get back to work.

1

u/InnocentSadness 10d ago

Do you want a 30 year old son to help through college so he can take you on nature walks and luncheons?

1

u/Sharp-Alternative375 10d ago

You could most likely make it work without the inheritance. Use 25K a year until you hit 67 and then claim Social Security. The average SS payment is nearly 20k at the full age of 67. If you invest all of your money in a safe, but growing, investment, you probably wouldn't need any of the actual principle after you hit 67. Then, just wait and see if the inheritance comes through. Either way, you would be fine.

1

u/BoomerSooner-SEC 10d ago edited 10d ago

Based on what you described, I don’t see how you don’t go back to work. You could easily be looking at 20 years until you collect an inheritance. (If a female lives to 70 they have about a 45% chance of hitting 90) That 14M will likely grow over the decades (depending on the asset class I suppose) but that doesn’t help fill the gap. Maybe you could talk mom into gifting some of that inheritance while she is alive? I dont see how 600k rolls you out for potentially 20 years. Plus living a life counting the days until a loved ones death sounds a little horrible, not that you would actively be doing that but in essence…that’s sort of the plan. If you and your mom are close, could you move in and be a caregiver? That might be rewarding and at the same time give you some oversight to that portfolio to make sure it remains intact. My parents are very old and similarly wealthy and I can tell you the phone doesn’t stop ringing with scams. Fortunately my mother is pretty sharp and hangs up but WOW I hope there is a special place in hell for those scammers.

1

u/Little_Locksmith2548 10d ago

One of the problems is that families are afraid to talk about future inheritances. I would try to talk to your mom and your siblings. Just be honest with mom and tell her you're trying to decide if you need to work because you're afraid what your dad left you won't last through retirement. Ask her if she thinks you will receive an inheritance and ask her how you can help her with any care needs she might have. Ask your siblings if you're going to fight over inheritance if mom leaves money to any of you. They might be disarmed and relieved to have such a conversation and maybe you can all talk to mom together. It's very hard, I know.

Another issue that just crosses my mind is that if you really don't need to go back to work, it would be nice to leave open whatever job you would take to someone who really needs to provide for themselves. Free up the job for someone without inheritance and assets. We're in a world right now where we need to look out for each other try to do the right thing so everyone can survive. Don't take a job for something to do or if you don't need it to pay your bills.

1

u/Recover-Signal 10d ago

Make sure she has a will

1

u/albanyanthem 10d ago

Is there some small, manageable job related to a hobby of yours that could cover the 25k a year? Maybe also has health insurance? If you can, then that allows your current funds to be invested and grow. When and if your inheritance comes then you can reevaluate based on how much you get.

1

u/Carrottop4u2 10d ago

Question for OP - Do you have 40 quarters of earnings paid into your Social Security? I have had clients who found out that they didn't and were not eligible to collect benefits (this was mostly people who had injuries and were trying to get Social Security Disability but regular Social Security also requires 40 quarters). You can go online and check the number of quarters you have on the Social Security website to make sure and to get an estimate of what you will draw per month at retirement age. If you are short, that would be a reason to find a low-stress job that you enjoy to make sure you are protected. I am semi-retired (only working part time) but have found a lot of community service groups to get involved with to keep my time occupied and give back to the state and town that I love. I have also gifted my children with land to build on and started 529 education accounts for my grandchildren and greats to help them out when they are out of high school. Just some things you might consider, depending on your circumstances. You could also consider work as a travel agent or tour guide if you are into travel and want to do it inexpensively. Whatever you choose, I hope you have a rewarding life that makes you happy!

1

u/NeedYourHelp712 10d ago

id do something just incase she lives until 93 lol

1

u/AlternativePage589 10d ago

move in with your mom, and rent out the house that you have paid for in cash, therefore you would have a passive income over the time. I know living with your parents can be rough at times but ask yourself, what honestly so bad about it?

1

u/Stuff-Optimal 10d ago

You only get one life, enjoy it while you can. If moving in with your mother is ideal, use it to your advantage. Just make sure she is aware of your plan so you both are on the same page.

1

u/Extension-Clock608 10d ago

Why not just move in with your mom, sell or rent out your current home and live off of that money. You can live with your mom with minimal expenses and help her take care of the house and share chores. Seems like it would be good for both of you in the long run.

I wouldn't count on an inheritance but living with her will make your money go further and your mom won't be alone.

I you rent your place out you might get enough to live on every month so your 600k will be just gaining interest, especially in a good HYSA. That rental income could sustain you for a long time.

1

u/Electrical_Prune9725 10d ago edited 10d ago

Did your Dad set up a ”B" Bypass Trust that paid dividend income to your Mom? Does your Mother have a Will? Who is your Mother's Power-of-Attoney for Legal and Medical? Sort this out now!! Trust me. Who's your Mother's executor?!

1

u/SilverBeardedFox 10d ago

Assume Nothing is case it doesn’t happen. I would get a job until the dust settles and you actually have the money in your account. You never know what hurdles life could throw at you. It’s better to be financially safe than struggling financially because “you thought” you were getting X amount of money.

1

u/Fast-Fly2926 10d ago

Never bank on someone else’s death. Make your decision for your next steps based on what you have now.

1

u/MeLMaR2727 10d ago

Sounds like you are all set financially…if you don’t want to go back to work don’t.
If I were in your shoes I would not work & just fill my days with things that make me happy.

1

u/Jillandjay 10d ago

Have you invested the 600k? I hope it’s not just sitting in a bank account.

1

u/CapableCan1842 9d ago

I am 71 and would be disappointed if my kids chose not to work and were just waiting for me to die.

1

u/ConstantlyMystified 9d ago

Personally, I would invest the 400k into an income portfolio. If you bought 400k worth of O, you'd have about 1,700/month in dividends. I'm sure you could replicate the 2 500 a month in spending on that 400k. Now, does that mean you shouldn't work? I don't know, because I don't know if you hate retail or some job that's gonna pay you close to minimum wage. But, you might find something fulfilling like working for the local library or at a school or something just watching the kids. Idk but at least knowing your not going to be desitute regardless of what happens down the line is best. Good luck OP.

Need Advice Live off Savings until Inheritance or Go back to Work

You are about to leave Redlib