Tips on Investing an Inheritance or a Lump Sum of Money

 In Ozarks Live, Tips

Have you recently inherited a sum of money and are unsure of how to save or invest it? Coming into a large or small amount of inheritance money unexpectedly can be very overwhelming – and also very tempting. You will most likely want to be able to splurge, but you’ll also want to have something to fall back on through wise saving and investing decisions. There are so many things to consider when it’s time to invest an inheritance.  Here are some helpful tips from the Resource Center President Bruce Porter on what you could do with an inheritance and how to make your money last.

Utilize Your Financial Tools

There are three major resources of financial tools in the United States:

  • Banks: Banks give us easy access to our funds whenever we need them and provide a secure way to put away and save money over time.
  • Brokerage accounts: This resource includes financial tools for investing money like stocks, bonds, and mutual funds.
  • Insurance: Insurance can also help you preserve your money and may have a lower level of risk than other investments.

In addition to these three major financial resources, there are also three stages of investing that you should keep in mind when dealing with an inheritance.

Short-Term Investing

Short-term investments or “immediate money“ is the portion of your inheritance funds that you plan to use right away or in the event of an emergency. Before spending these funds, make sure to take the time to build up your savings account for any short-term goals that you might have or in the event that you’ll need to utilize a rainy day fund. Any money that you want to invest over the next three years could be best kept in a savings account.  

Medium-Term Investing

Medium-term investing is designed to save a larger amount of your inheritance money to spend in the future – like for a vacation or for updates to your kitchen. Medium-term investing often means saving for a purchase. Planning your medium-term investment options is a stage where you will really want to sit down with a financial advisor to discuss how important your goals and deadlines can be.

The truth is that there is no definitive answer when it comes to investing for medium-term goals. It really depends on the specifics of each situation, and even then your personality as an investor matters too.”1  The key is to successful medium-term investing is to remember your financial goals, what really matters to you, and to be fully aware that there will be losses and gains when investing. 

Long-Term Investing

Long-term investing is the process of utilizing your money to help you plan for retirement income, charitable contributions, or to pass on to your beneficiaries in their inheritance funds. For longterm investments, you might consider talking with a financial professional about brokerage accounts or
insurance to ensure the security of your funds over time.

“Goals that are 10 or more years away give you the freedom to invest in the stock market and take on some risk in order to reach for the higher potential returns the stock market offers. One reason is simply that with longer-term goals you’ll have more time to make adjustments if things don’t go as well as planned, either by saving more or by changing your goal to make it more achievable.”1  

It’s important to have these different stages of money for the different stages of life. When it comes to the best way to invest your inheritance money, structure is key and making sure to have a good amount of money to fall back on will offer you and your loved ones safety and protection. A little planning can go a long way in making sure your inheritance will last. Speak with an advisor to help you sort through all of your options before making any commitments.

Make sure to tune into Bruce’s show – Dollars and Sense – next Tuesday on KOLR10 for his next topic or visit our blog page to get even more financial tips from the Resource Center!




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Investing involves risk, including the potential loss of principal. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.   

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.  Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Our firm is not affiliated with the U. S. Government or any governmental agency.  Investment advisory services offered only by duly registered individuals through (AEWM).  AEWM and The Resource Center are not affiliated companies. 00626469

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