Have you recently been the recipient of a large inheritance? Before you make any substantial purchases or decisions, take some time to think about how to manage inheritance money in a way that can serve you throughout your lifetime and perhaps benefit future generations as well.
One of the best reasons to be deliberate and thoughtful with your money is the fact that the great majority of inherited wealth is gone within a short time. A lifetime was spent building the nest egg you’ve been given, why not honor the same principle yourself? If you manage your inheritance wisely, you can provide financial security for yourself and your family. So where to start?
GUIDES
The Essential Guide to Retirement Planning
A 4-part series that answers key questions about building your plan, positioning your investments, and more.
Because most of us are not trained in wealth management, it’s not recommended to try managing a large inheritance alone. Consulting with investment managers can ensure the longevity of your fortune.
Yes, you can splurge, but not before investing
The first step in managing a large inheritance is having your financial advisor perform a comprehensive financial review. Taking a look at your personal balance sheet and prioritizing to pay off debt. When you clear up outstanding debts, you free up future cash flow, reduce monthly expenses and eliminate the cost of the interest paid over the term of the loan or loans.
Next, consider investing inheritance money in safe, diversified funds to help build your fortune and assure it will last throughout your lifetime. Following these steps does not mean you can’t enjoy any purchases or luxuries.. With a well-thought-out plan in place, you may find you can assure your financial independence and still have enough to experience the pleasure of spending on vacations, homes, new cars, and other splurges.
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Pay if forward
Along with leaving money to your heirs, you may also want to consider paying it forward by donating to charity. Becoming a benefactor to a cause you feel passionate about can be one of the most fulfilling things you do with your newfound wealth. Inheritance money management can be complicated but partnering with an excellent wealth management firm can help you accomplish all of your current and future goals.
For questions regarding your inheritance or any other wealth management needs, contact Blankinship & Foster for a free consultation. With decades of experience in helping our clients reach their financial goals, our investment managers in San Diego are here to help.