While coming into money is great problem to have, receiving an inheritance can also be a confusing, emotional, and stressful time.
However, it is important that you quickly learn how to save and spend your inheritance so that you can feel safe knowing that this new influx of money is being well tended to.
Similarly, if you are an heir to a will, you will want to be prepared to manage your money once that time comes.
What to Do:
There are many smart decisions you can make with your inheritance money, including the following:
- Place your money in an insured account.
Keep in mind, the maximum amount is generally $250,000, so you may need to set up more than one if your inheritance is larger than that.
- Meet with a financial advisor / inheritance planner
A financial advisor is your best resource for best practices to save and spend your inheritance wisely.
- Pay off high-interest debts
This includes credit card loans, mortgages etc.
More Sound Advice
- Place some in your retirement fund
- Work with a broker to make sound investments.
- Know when to say “no.”
It is not uncommon to experience an influx of people asking for money once they have learned of your inheritance, know when to say “no.”
- Limit impulse spending to under 10% of your total inheritance amount.
What Not to Do
Perhaps the biggest thing you don’t want to do is to spend your money frivolously and without any plan.
Other mistakes people make is hastily quitting their job, or making big purchases such as a new home without first meeting with an advisor to make sure that you are protecting yourself and your money for the future.
How to Save and Spend Your Inheritance
At Argent Bridge Advisors we are committed to helping you best utilize your inheritance to ensure your financial wellbeing.
To schedule a consultation with one of our trusted advisors, contact us online or call us today at (833) 568-4900.
