Tips On Investing An Inheritance Or A Lump Sum of Money

 In Financial Planning, Ozarks Live, Tips

Tips On Investing An Inheritance Or A Lump Sum of Money

Have you recently had a death in your family where you have become an heir to a sum of money?  Are you unsure where or how to invest it.  Coming into a large or small amount of money unexpectedly can be very overwhelming and also VERY tempting. You want to be able to splurge, but have something to fall back on. There are so many things to consider when it’s time to invest an inheritance.  Here are some helpful tips on what to consider and how to make your money last.

There are three major resources of financial tools in the United States. One that we’re all familiar with is banks. Banks give us easy access to our money whenever we need it. Another, is brokerage accounts, which includes stocks, bonds, and mutual funds. And finally, insurance, which can preserve your money and may have a low level of risk. Hire a professional to help you sort through all your best options to make sure your inheritance will last.

There are three stages of investing that you should keep in mind when dealing with an inheritance.

Short Term Investing

Short term investing or immediate money is something you plan to use right away.  Make sure to take the time to build up your savings account for your short term goals. Any money that you want to invest in over the next three years would be best kept a saving account.   

Medium Term Investing

Medium term investing is designed to save money that you plan to spend; like a vacation or wanting to update your kitchen. Medium term investing is saving for a purchase. Your medium term investing options is where you will really want to sit down with an advisor and plan out how important your goals and deadlines are. “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 remember what really matters and be aware that there will be losses and gains when investing. 

Long Term Investing

Long term investing is there to help you plan for retirement income, charity or to pass to your heirs. “Goals that are 10 or more years 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 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 different stages of money for different stages of life. Structure is key and having money to fall back on will offer you safety and protection. A little planning can go a long way in making sure your inheritance last. Speak with an advisor before making any commitments.

Make sure to tune into Bruce’s show next Tuesday for his next topic!




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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.  178433  

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