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

Today, I’m talking about why the first 6 months after receiving an inheritance is critical. Too many people who receive an inheritance quickly get to work spending it. Buying that car you’ve always wanted. Finally remodeling the kitchen, etc. 

But if you’re going to spend a portion of your inheritance, it’s best to wait 6 months before touching that money. Leave it in the bank, tie it up in a CD for 6 months before you make any decisions about spending. 

If you’re going to save and invest your inheritance, then it’s not necessary to wait as long as you have good, objective advice that’s in your best interest for a competent financial advisor. You’ll also need to consult with your tax advisor about investment decisions after receiving an inheritance, because you’ll want to avoid any tax missteps after receiving an inheritance.  

The other important reason why a 6 month waiting period on spending is critical is because chances are that this will also be a very emotional time, filled with grief. Most people will inherit from their parents and when faced with the difficult decisions of being an executor or dealing with your parent’s house or possessions, it’s also a very stressful time.

So it’s best to not let your foggy judgement during your grieving period lead you into some damaging decisions when it comes to managing your inheritance. 

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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