Here’s a story (and question) like this frequently. Maybe you can relate?
“My wife and I just retired. We are blessed to have more than we could ever spend. On the one hand, we don’t want to spoil our kids and grandkids. But we also wonder what good it does to leave them a bunch of money when we’re gone, and they don’t need it anymore. What do you think?”
Ever heard the Mark Twain quote, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so”?
Some people question if Mark Twain ever really said that. But nobody doubts the truth of the statement.
When it comes to leaving an inheritance, you may think you “know for sure” your kids won’t need your money by the time they get it. I believe that’s when they’ll need it most.
Let me explain.
I have so many parents tell me their adult children are “young and struggling.” When I ask what that means, they say they regularly hear their kids complain about how expensive everything is and how hard it is to save money.
“Do they own a house?” I ask.
“Yes.”
“Do they own cars?”
“Yes, two of them. One’s pretty new, but the other one has got to be at least five years old now.”
“Do they ever go on vacations?”
“Sure. Nothing too elaborate. Sometimes they go camping or to the beach. They went to Branson last year. One year they splurged and went to Disney World.”
“Tell me,” I ask, “when you were young marrieds, did you have a house, two cars, or go on those kinds of vacations?”
“Oh Lord, no!” they blurt out, often belly laughing in the process.
In other words, your adult children and those amazing human beings God put in their care (i.e., your grandchildren) live pretty comfortable lives, even if they sometimes have to economize or delay some gratification.
May I suggest this kind of financial “struggle” is a good thing? It builds financial muscles that might otherwise go unused. Thrift, resourcefulness, grit, and persistence aren’t things people post about on Instagram, but they may be some of the most important character traits a 20- or 30-something can develop. (They’re not bad qualities for those in their 40s- or 50s either.)
So, I wouldn’t rush to fund their lifestyle now.
In saying that, I’m not denying that lots of families in their 30s and 40s really do struggle. Some of them may be your adult children. But if they’re stretched thin right now, what are the chances they’re saving enough for their own retirement?
The numbers aren’t encouraging. The 2025 Transamerica Retirement Survey found that Gen X workers, now in their mid-40s to early 60s, have a median of $107,000 saved for retirement. That’s not going to get the job done. And 81 percent of them believe they’ll have a harder time reaching financial security than their parents did.
Now think about when an inheritance usually arrives. Vanguard found that people who inherit an IRA receive it, on average, at age 59. In other words, your kids probably won’t get your money in their 30s, when they’re juggling mortgages and car payments. They’re far more likely to get it right around the time they’re trying to figure out if they can afford to retire.
So, when you wonder about leaving money to kids, I’d offer this perspective. Could they use it now? Of course! But they’re much more likely to need it later.
I’ve seen multiple situations in which an inheritance from parents made the difference between a secure retirement and one that teetered on the brink of ruin. I’m thinking of one client’s parents who set up a charitable remainder trust that paid him and his siblings $10,000- $15,000 a year for 14 straight years right at the time they were all scrambling to put together retirement plans.
The goal? If you can live off your nest egg AND preserve a big chunk of it for the next generation, you may be doing much more for your children than you realize.
And I should add you don’t have to wait until you’re gone to help.
If your kids or grandkids have earned income, you can fund a Roth IRA for them. That money can grow tax-free for decades.
You can match what your adult children put into their 401(k)s. That rewards saving instead of spending.
In 2026, you and your wife can each give up to $19,000 to as many people as you like without touching your lifetime gift and estate tax exemption.
And if spoiling them is your concern, a trust (like the one described above) can release money at certain ages or for certain purposes, like a first home or retirement. That way the inheritance helps without hurting.
I love the idea of grandparents paying for some or all of a grandchild’s college or helping their kids with that first down payment. But in a world where most people save too little and spend too much, the best gift you can give your own children just might be the seeds of a secure retirement of their own one day.
P.S. If you’d like help figuring out how to structure what you leave so it helps your kids without spoiling them, give me a call or email me at bmoore@argentadvisors.com.
Byron R. Moore, CFP® is managing director / planning group of Argent Advisors, Inc. Email him at bmoore@argentadvisors.com. Write to him at 500 East Reynolds Drive, Ruston, LA 71270 or call him at (318) 251-5858.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Argent Advisors, Inc. (“Argent”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Argent. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Argent is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Argent’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.argentadvisors.com. Please Note: If you are a Argent client, please remember to contact Argent, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Argent shall continue to rely on the accuracy of information that you have provided. Please Note: IF you are a Argent client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
The information contained in this message is intended only for the personal and confidential use of the recipient(s) named above. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, please notify us immediately, and delete the original message without any review/dissemination thereof. Please Note: There can be no assurance, nor should there be any expectation, that Argent Advisors, Inc. (“Argent”) shall review or act upon any email on the day it is received-please be guided accordingly. Please remember to contact Argent, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services. Argent shall continue to rely on the accuracy of information that you have provided. A copy of our current written disclosure Brochure and Form CRS discussing our advisory services and fees continues to remain available for your review upon request or at www.argentadvisors.com.
