Inheritance To FI
Inheritance To FI
Yesterday was a fun day for The What’s Up Next Podcast. We recorded a listener takeover. Four listeners signed up through Facebook to be guests on the podcast and discuss their financial journeys, as well as turn the table on Paul and I and ask some of their own questions. At one point in the show, we asked them ideas for new episode topics. Each one of them provided a slam dunk. One, which really got me thinking, is the inheritance to FI pathway.
Although I don’t talk about it here, I inherited money from both sides of my family from my grandparents. Neither sum was earth shaking, but they both put me in great financial shape in my early twenties.
Did this change my financial trajectory? Does it somehow make my journey less intriguing?
Cheating?
In this little vortex of content creators in the financial independence world, we glean a lot of street cred from our origin stories. For some it is a tale of growing up in poverty. Others, entered their adult lives with huge amounts of debt. And some, are unfortunate to trace their beginnings to a tragic event, death, or health scare.
These origin stories have resonance. They speak to a deeper need in the audience that feels kinship with the underdog. So does that negate the inheritance to FI pathway?
Are stories of wealth passed down through the generations somehow less valid? Less instructive? Do they not leave the reader feeling as good or as empowered?
Relatability
It might just all come down to relatability. The majority of us reaching towards financial independence are not blessed with six or seven figure inheritances. Thus, there is a certain amount of skepticism about the rigor of this journey.
For most people, financial freedom is a struggle littered with difficult decisions, frugal choices, and hard work. Hearing about the inheritance to FI path is unlikely to resonate.
Jealousy, in fact, may ensue. How lucky for someone to have a fortune handed to them when the rest of us have to work for years to get there? While no one begrudges good luck, it certainly doesn’t feel right to praise it either.
It is hard to congratulate someone who happened to be born to the right parents or grandparents.
Generational Wealth
The inheritance to FI pathway is a real phenomenon. It is one of the oldest and most durable ways to reach financial freedom. It is no less true or authentic then any other origin story. And more importantly, it may be the way most of our children and grandchildren reach this lofty goal.
The financial independence practitioner today is building multigenerational wealth. Whether they like it or not, if successful, they will probably leave millions to their offspring.
This may start as small gifts here and there. A college tuition paid in full. Eventually there will be money left over. It is very likely that second and third generation FIRE will get there faster and more securely through inherited wealth.
Final Thoughts
The inheritance I received as a young person set me far ahead in my path to financial independence. Although the numbers weren’t life changing, they allowed me to save and invest at an early age.
Most of us who accumulate enough to reach financial independence will die with large sums of money in the bank. We are creating an inheritance to FI roadway for the next generations.
Will the origins of financial freedom make it less appealing? Less authentic?
It’s great to receive a sizable inheritance. Even with a sizable inheritance, the road to FI still needs to be learned. If the beneficiary doesn’t understand how money works, they are just as likely to blow through whatever blessing they receive as the next person who lives paycheck to paycheck. Getting a head start does not guarantee success, any more than a big paycheck does. For examples, I point to lottery winners, most of whom end up bankrupt in the end. In my opinion, we all need to learn the road to FI, no matter where we start.
Very true. Think how powerful it is if you get an inheritance after you learn about FI>
This is a great topic that can potentially bring up all kinds of emotions. Which I believe is a very good thing.
As unique as we are as individual, our stories and journeys are relatable , but also at the same time unique to our personal situations and experiences. I respect your journey and am reminded of a teachers’ simple words: “It’s not fair to compare “.
Whether you are comfortable with having financial security inherited or earned , or uncomfortable with it, or are struggling with scarcity or just getting by covering your bills, it is all part of our personal journey. We may encounter others reactions of jealousy or scorn. Sudden wealth , loss of it, or never having it may bring up all kinds of fears, worries, and personal doubts.
But, It is always in our control, to find acceptance of our own path, to adjust our own financial trajectory with our choices, to seek out and learn about becoming more financially literate, and always, regardless of wealth , we have the option and opportunity to make a difference.