OK, so maybe your family didn't leave you enough to make you a trust fund baby billionaire. 🎩🤑 That doesn't mean you shouldn't handle your funds like a savvy rich dude. Yachts sold separately. 🛳️
According to recent data from New York Life, 58% of Americans expecting to receive an inheritance aren't comfy-cozy with managing their newfound funds. 🥴 Fortunately, we've got some tips to make it a little less complicated.
Here’s Five Fast Facts on how to manage your inheritance:
- 🛍️ Mixed Bag - Over the next ten years, 15% of adults anticipate receiving an inheritance. Here's the breakdown: 58% say they'll get cash, 43% expect property, and 28% expect investments.
- 🍲 Let It Simmer - Letting your inheritance marinate for a little while might be your best bet. Park your inheritance in a high yield savings account for about six months while you come up with a game plan on how to use it. You'll make some more money off interest in the meantime.
- 💰 Business with Pleasure - Need to beef up an emergency fund? Use your inheritance to ensure you have three to six months worth of expenses saved. If you have high interest debt, make paying it off your next order of business. After you cross those off your to-do list, set aside some money (experts recommend around 5%) for something fun.
- 🧑🤝🧑Buddy Up - You don't have to manage your inheritance alone. Connect with people you trust and find a good financial advisor to walk you through your options. Inheriting money, property, and other things often comes with complicated emotions, especially if you're also grieving the death of your loved one. Don't be afraid to check in with a therapist to help you process it all.
- ☕ Coffee Talk - Talking about money is still taboo in our society, especially among the older generations. However, it's a necessary evil and talking about it makes it all less of a mystery. Discussing your inheritance in detail with other impacted family members helps everyone get on the same page. The more you talk about it, the less difficult money conversations will be.
🔥Bottom line: Managing an inheritance is an intimidating task. With the right mindset and tools, you'll be smooth sailing…probably on an average Joe boat. Getting solid financial advice from a professional goes a long way. Just make sure you don't fall victim to a scammy finance influencer on the internet! Read our list of red flags here.
Did you recently receive an inheritance?
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