When building a legacy for your children, we tend to research estate planning tools and resources, draft a trust agreement or even consult a life insurance company. However, if you are a beneficiary of an inheritance and or windfall, here are some tools and techniques that will enable you to invest your resources.
You must first consider your taxes. The next item you must consider is try to avoid the pitfalls of wrong thinking.”Failure to save because we think of windfalls as new found money, will cause overspending.” “Lottery winners are an obvious victim of this logic.” It is also good to take time to look at your short-term and long-term goals, like paying down debts, and saving for a home or retirement.
Lastly, it is a good idea to contribute the maximum allowable amount to retirement accounts for the year with your employer. “The amounts may be small compared to your inheritance, but retirement plans come with tax benefits that you’ll want to capture.”
Carolyn Marsh, (May 2016). “You’ve Received An Inheritance, Now What?” [Retrieved from Betterment.com]
You May Also Like: Jake Hawkins (May 2016). “How I Saved $150,000 And Bought My First Home.” [Retrieved from Learnvest.com]