Table of Contents
What should I do if I inherit millions?
Inheritance DO’S:
- DO put your money into an insured account.
- DO consult with a financial advisor.
- DO pay off all your high-interest debts like credit card loans, personal loans, mortgages and home equity loans should come next.
- DO contribute to a college fund for your children if you have them.
What’s the first thing you would do if you inherited a million dollars?
The first thing many people do when they inherit money is to look for ways to spend it. Some buy new clothes, a flashy car, a European vacation, a beach house, and on and on until the money runs out.
What do you do with inheritance money?
1) Invest for the Future. Take 1/3 rd of the inheritance and invest it into a non-registered investment account (how you invest the money is actually the easy part and perhaps a discussion for another day). This account can act as future retirement savings, emergency fund, etc. 2) Payback the Past.
How long does it take to spend an inheritance?
Even the most financially savvy person can quickly spend an inheritance, and while you might think “not me,” studies show that one in three people spend all of their inheritance (and more) within two years. That’s frightening when you consider it takes a lifetime of saving to build up an inheritance.
Should I invest my inheritance or pay off debt?
When given the choice, conservative investors choose to eliminate debt. Once you’ve taken care of your debts, it’s time to invest. Acting on the “pay yourself first” principle, you can put your newfound wealth to work. By investing your inheritance you give it an opportunity to grow. Your financial advisor will be able to help you invest wisely.
What would you do with 1/3rd of your inheritance?
The funds that you are currently using for rent can now be used to pay down the mortgage. 3) Live for the Now. The final 1/3 rd of the inheritance I would use to go on an amazing trip, buy a sports car, see the world, cross something off your bucket list, make a charitable donation to your parent’s favorite charity, upgrade your education.