- Posted March 16, 2022
A Certified Financial Planners Advice on How to Invest a Large Inheritance
So, you’ve just found out that you’re going to receive a large inheritance at the passing of one of your relatives. What an exciting prospect! However, you need to be smart about your inheritance money. Rather than spending it all, be smart and invest your money to make it grow over time says our certified financial planner. Here are a few ways to invest your large inheritance successfully.
Invest in a Diversified Portfolio
First off, you should create a diversified investment portfolio to grow your inheritance over time. It is beneficial to create a diversified portfolio that contains a few different investment approaches. For example, you might want to have mutual funds and EFTs in your diversified portfolio as part of your financial planning. This will help you to maximize your investments in your portfolio by having different growth rates going at the same time.
Buy Real Estate
Another investment that you should consider is buying real estate. There are so many different types of real estate properties that you can choose from, each with its own benefits. One of the great things about buying real estate is that there is always a demand for housing. Make sure that you do your research to find a type of real estate property that has a high demand in the area that you are looking to buy in. Another great thing about investing in real estate is that it generally isn’t too difficult to acquire rental properties. Homeowners like selling to cash buyers because the transaction is much quicker.
Invest in Your Future
Finally, remember to invest in your future if you’ve just received a large inheritance. This doesn’t mean that you should go off and buy an expensive car or a lengthy vacation. It means that you should put your inheritance into your savings for future costs that you will need to cover. For example, you might want to use that inheritance money to pay off the mortgage on a new home in the future. You also might want to set some of the money aside to start saving up to send your children to college. You will always be grateful that you’ve invested in your future rather than buying what you wanted at the moment.
Before you spend your inheritance money too quickly, take some time to think about how you could invest that money to make it grow over time. Remember, you can invest in a diversified portfolio, buy real estate, and invest in your future plans and needs. These types of wise decisions will literally pay off in the future as you’ll see that inheritance money grows and appreciates over time.
Check out this article on how a financial planner can help you avoid trouble when dealing with insurance companies!