|Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance.|
How to Handle an Inheritance
By Britt Erica Tunick
It is not uncommon for people who suddenly come into a large inheritance to blow through their entire financial windfall within several years of receiving it. If a large inheritance is in your future, or if you have unexpectedly come into a large amount of money, you should take your time and develop a long-term plan before doing anything with your newfound wealth.
According to a study done at Ohio State University, not only do roughly 33% of those who receive an inheritance spend it all, but they also wind up with negative savings within just two years of getting their payout. To avoid falling into that category, the best thing you can do right after you inherit wealth is nothing. Don’t spend anything until you’ve taken the time to assess your overall financial situation and developed a long-term investment plan to ensure the longevity of your inheritance. While it may be tempting to run right out and purchase a shiny new car, doing so before looking at your overall financial situation is unwise. Instead, the best bet is to find a trusted financial advisor who can help you determine your best investment prospects for a secure financial future.
Following are some things to keep in mind if you have recently come into a significant amount of money, or if you expect to do so sometime in the near future: