I’ve never factored an inheritance into my financial planning, but if you know you can expect one, it is something to think about.
It could change the way you live now and alter how you save for retirement. However, as Dr. Jim Dahle suggests, approach any potential inheritance with an abundance of caution.
And treat your parents well, whether you expect an inheritance from them or not!
The easiest thing to do with any possible inheritance is to just count it as gravy. That means if it comes, great. If it doesn’t, that’s fine too. That means that the money you inherit should be earmarked for charitable contributions, leaving as your own inheritance, or at least only counting on it for extras rather than mandatory living expenses.
On the other hand, some people are going to inherit a rather substantial sum relatively early in their investing careers, and the chance of something going awry seems very small.
Perhaps the best thing to do is to actually talk to your parent or whoever you expect the inheritance from and tactfully (very tactfully) ask if an inheritance is something you should incorporate into your financial plan.