ABOUT 65 years ago, my wife and I, both in our mid-20s, purchased a modest home in an outer Sydney suburb for $11,000.
I don’t remember it being particularly hard to manage the costs involved. We both worked, and although wages weren’t great, saving wasn’t too difficult back then.
To be fair, there weren’t as many temptations to spend. No mobile phones, iPads, or internet bills. No daily coffees or breakfasts at the local café. None of the endless expenses that seem to drain money today.
Our first baby was born in that home, but as Sydney became busier and the traffic thicker, we decided to make a change. We moved to Queensland – just before the big flood of 1974.
Many seniors today are still living in their own homes, most likely paid off by now and worth somewhere in the vicinity of a million dollars.
It’s hard to believe, when you think back to what those homes cost originally – perhaps under a hundred thousand dollars or even less.
If you’re one of those homeowners, you might find yourself sitting on a small fortune compared to when you first bought your place.
Hopefully, your home is paid off and your children know that when you pass on, its value will be passed down through inheritance.
But that raises an interesting question – should you spend the kids’ inheritance? Known by some as the “SKI” philosophy, it’s a topic that sparks plenty of debate across generations.
Some believe retirees should spend as much as they can enjoy while they’re alive. After all, you’ve earned it.
Others take a more conservative approach, wanting to leave as much as possible to their children and grandchildren.
Over the coming years, trillions of dollars are expected to transfer from the estates of deceased Australians to their heirs.
According to one online survey, Baby Boomers tend to believe retirees should enjoy their savings, but most admit they’re cautious – unsure how much they’ll need later in life.
Meanwhile, younger generations often believe retirees should preserve their wealth for their children.
So – have you made a will yet? Do you know how you’ll divide your assets when the time comes? It’s an important question, no matter your age.
Without a clear plan, families can find themselves in legal and emotional turmoil.
A solicitor can guide you through the pitfalls and ensure your wishes are carried out properly.
It’s your life, your legacy, and your decision – whether you choose to spend it now or save it for later.
