Welcome to a new week and a new theme here on the One Minute Retirement Tip! 

This week’s theme is What Do I Do With Inheritance Money?

[Client story about Inheritance]: Lifelong savers, never high income earners, worked hard…

After both parents died, their daughter inherited about $600,000 in their investment assets plus their house. She was excited about her windfall and she said she was just going to spend enough of it to buy her dream home. 

The problem was that her boyfriend was unemployed and she worked part-time making about $30,000 a year in income. It wasn’t going to pencil out. Even if she paid cash for the house, she wouldn’t be able to afford the upkeep, taxes, etc. 

She ended up burning through all $600,000 in about 18 months and I would be surprised if she still lived in that house. 

Unfortunately, and sadly, this daughter of my client is like most people who receive an inheritance. Does it surprise you that statistics show that many of us are just going to waste our inheritance? 

One study found that adults who receive an inheritance save just half, while spending, donating or losing the rest; nearly 20 percent of baby boomers who received $100,000 or more spend their entire gift. 

20% of us spend it all! 

So this week I’m going to help you make smart decisions about what to do with your inheritance. We’ll talk about the biggest mistakes made, why you should wait before making any spending decisions, and help you start to think about guidelines for spending, saving, and investing your inheritance wisely. Then we’ll wrap up the week by talking about how you might want to plan now for your own wealth transfer. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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