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Grandpa Moneybags Lesson #2: Don't Plan On An Inheritance

The following is the second fictional story in the Grandpa Moneybags series. Read the original story here. Created by Hurlow Wealth Management Group, Grandpa Moneybags is a fictional character who shares lessons that parents and grandparents can use to align with monetary gifts and introduce financial concepts.  

Grandpa Moneybags #2: Don't Plan On An Inheritance

For the past few summers, Charlie Kest has rented a big house on the beach to spend a week with his daughters and grandchildren. Charlie earned the nickname "Grandpa Moneybags" from his grandsons, Bobby and Keith (ages 11 & 13), when he gave them $100 each at the beginning of their vacation the previous year. This year, Grandpa Moneybags wanted to make gifts to his daughters too. Katie, the oldest, arrived first with her husband and children. The following day, his daughters, Jessica, and Abby arrived early in the morning.

During breakfast, Charlie told the girls, "It's so good to have you all together. Let's go out to dinner tonight. Just the four of us. Ok?"
"Sure, Dad." Abby said, "but right now, I want to go to the beach! Who wants to come with me?"
Bobby and Keith looked up from the electronic devices they were staring at on the couch and announced, "I do!" As soon as Abby stood up, her nephews ran to their room to change out of their pajamas.

The Dinner

That night, Charlie, Katie, Abby, and Jessica walked arm-in-arm the four blocks down to the boardwalk. Stopping in front of a blue neon sign that read "CrabbyShack," Charlie said, "Your mom loved this restaurant."
"Is this where they pile the crabs on top of the table, and you wear a bib?" Asked Jessica, the youngest. Charlie nodded.
"I haven't been here since I was ten!" Abby exclaimed.
"Yum! This will be fun." Katie added.  

After they placed their order, Charlie shared his agenda. "The reason I wanted to have dinner tonight was about this 'Grandpa Moneybags' nickname Bobby and Keith gave me."
"I'm sorry the boys called you that," Katie responded, feeling embarrassed.
"I'm not," Charlie reassured her. "It made me wonder if you thought of me as 'Papa Moneybags' and to consider the missed opportunities to share lessons along with the financial gifts you received throughout the years. Before your mom died, we talked about what we wanted to happen with our money. She thought I spoiled you." 

"No, dad. I have great memories of spending money with you. Do you know how many of my friends were jealous because my dad took me to the mall to go shopping?" Abby said emphatically.
"Remember when..." Katie shared another story, and Charlie beamed with pride as the three girls continued to reminisce about their childhood.

Jessica was in the middle of telling her story about talking her dad into getting a manicure when she was interrupted by the arrival of a steaming tray of blue crabs descending on the plastic red and white checkered tablecloth. "Ooh, let's eat!"

Don't Plan On An Inheritance

"Your mom would be so proud of the three of you. I know I am." Charlie paused to smile at his three plastic bib-wearing children. "You know, I'm not going to be here forever, and there are a few things I want to do before I die." 

"You're not sick, are you?" Katie asked hesitantly. 

"No, no, but I do need to redo my estate plan. Your mom's been gone for a few years, and I need a new will. It still says everything goes to her. I can't take it with me, but I don't want you to plan on an inheritance either."

"I don't care if you spend it all, dad. It's your money." Katie replied. Jessica and Abby nodded in agreement. 

"While I appreciate your saying that, I think I did a pretty good job teaching you how to spend money, but maybe not so much on how to save. Last night, I spoke to Bobby and Keith about the value of patience and the 401(k), but I realized that I've never had that conversation with you girls. 

I want to make sure you have a financial plan so you can retire comfortably someday. I don't want you to put off taking vacations, buying a house, getting a master's degree, or having children because you think it's too expensive. I spoke to my financial advisor, John, and he or someone from his team is willing to meet with you to develop your own financial plans."  

Better Than An Inheritance

"What I've been thinking about this past year is what will be in my estate plan. I don't want to leave behind a pile of assets, but I do want to leave a legacy. So if you want, I want to help you all work on plans to become millionaires someday, without an inheritance.        

Working with the Hurlow Wealth Management Group helped me gain clarity with my financial picture. As a result, I confidently made decisions about saving and spending during my career. Now I'm living a comfortable retirement, and I want you to have that too. 

Meeting with a financial advisor can sometimes feel like going to the doctor because you bear your financial soul. First, they ask about your income, spending, what you currently have saved, and your liabilities. Then you will set some goals, but you will create a plan and learn how to work towards them.

If you want, you can include me in the Planning Meeting. I would like to know how I can help. The stock market has done very well these past few years, and I am in a position to gift you each some money, not a lot, but enough to help you get set up to build your nest eggs.  What do you think?"

Next Steps

Charlie's three daughters made appointments to discuss their finances with their dad's advisory firm. It took some time, but now they are all on track to become millionaires by the time they reach retirement. If you have never talked to your adult children about their finances, it can be hard to know where to start. You may be competing with Reddit opinions, or their YOLO lifestyle. If you would like to know more about this topic, we encourage you to watch a recorded webinar from Tuesday, November 2, 2021, What To Tell Kids And Grandkids About Investing.

Meet The Hurlow Wealth Mgmt Group

Services offered through Hurlow Wealth Management Group, Inc., a Registered Investment Adviser. Hurlow Wealth Management Group, Inc. does not provide tax, legal or accounting advice.  Advisory services are only offered to clients or prospective clients where Hurlow Wealth Management Group, Inc. and its representatives are properly licensed or exempt from licensure.  Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Hurlow Wealth Management Group, Inc. unless a client service agreement is in place.  

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