What to Do with Your Inheritance

What to Do with Your Inheritance

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The fairy tale story goes that your rich uncle dies and leaves you an incredible fortune. But it doesn’t have to be all that mysterious. No matter where your inheritance comes from, it can be hard to decide what to do with the money. It may feel like a dream come true at first. But overall, more than a third of Americans who inherit (34.9%) see no change, or a decline in their wealth, according to Ohio State University. A fiduciary financial advisor in Centennial can help make sure your fortune (and more) doesn’t evaporate into thin air.

Temptation sneaks up to immediately treat yourself to a luxury vacation or the swanky car you’ve always wanted. And that may be the right thing to do. But what if you got out of debt and secured your financial future instead? Or both? What you do with this inheritance will impact your future, so spend it very wisely.

Here are tips on how to take a lump sum and turn it into a secure financial future for you and your family.

Basic Principles – Donations, Savings and Spending

You don’t need to save every penny to be responsible with your inheritance. A fiduciary financial advisor in Centennial will give you unbiased advice about how to secure your future. But the place to start is to look at these three essential areas – Donations, Savings and Spending.


Donating some of your inheritance to your favorite worthy cause creates a mindset of plenty. Those who consider money scarce may have trouble “giving money away” but often end up losing their inheritance anyway. Doing good does good things for you, and there’s always the tax benefits!

Savings – Setup Your Emergency Fund

An emergency fund has at least three to six months of income, or expenses, in a designated savings account. More is better. That way, if your car breaks down, your fridge goes out, or you have a gap in your employment, you have a bridge to carry you through.

Savings – Get Rid of Debts

Getting rid of debts is a type of savings. A key to financial freedom is being debt-free. Pay all your credit cards, student loans, vehicles, and other debts (but not your mortgage) from the smallest balance to the largest. This consolidates your payments and gives you more flexibility with your monthly income.

Savings – Investments for the Future

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Investment grows your wealth. Top up retirement funds from your employer and diversify your investments. Every investor’s circumstances require specific considerations, but about 15% of income is standard to invest. Consult with your fiduciary financial advisor in Centennial to determine what investments work best with your new inheritance monies.

Spending – Have Some Fun

Although inheriting money always has an element of sadness, it’s absolutely okay to spend some on something you enjoy. Spend the money in a way that honors the legacy of your deceased loved one.

Take the Anxiety Away with a Fiduciary Financial Advisor in Centennial

So, if you feel overwhelmed with your new inheritance and would like some guidance, contact a Fiduciary Financial Advisor in Centennial. You will receive objective, straightforward advice to simplify the investment process.