Receiving an inheritance usually means the death of a loved one or a close friend, so firstly my condolences for your loss. Losing someone you love is never easy. But if you have recently received an inheritance, there is a silver lining. Whether it’s big or small, an inheritance can provide you with a life-changing opportunity. An inheritance can jumpstart or even help you reach your financial goals if you’re wise with the money you receive. As fun as it is to go on a shopping spree, being money smart when you manage your inheritance will provide you with even more joy in the future.
To help you create a plan as to how to handle this windfall this is my step-by-step guide on how to manage your inheritance money, the right way.
1. Give yourself time.
After a major life event such as the death of someone close to you, it’s good to give yourself the appropriate amount of time to grieve. Remember: emotions and finances don’t mix well. Before you make any big financial decisions, you should carefully evaluate your emotions first and really ask yourself if this is the right choice right now. It’s tempting to take your newly-inherited money and spend it on something that will give you immediate joy – but before you decide what to do with your money, you need to properly deal with your emotions first.
2. Think about your financial goals.
Once you’ve had the time to grieve, it’s time to start moving forward with what you will plan to do with your inheritance money. Make a list of all the financial goals you have. This may be saving for a house, paying off debt, saving for retirement, and so on. Whatever your goals are, make a list and then prioritize them from most to least urgent or important. If you haven’t started already, receiving a large inheritance is a great opportunity for you to start investing your money in a savings account such as a TFSA or RRSP.
3. Work with a financial advisor!
Once you’ve made a list of where you would like to invest your inheritance, call a financial advisor, like myself, to help you decide where your money would have the most value for you right now and how you can finally reach some of those hard-to-get goals on your list. A financial goal is more than just money, it’s about dreams becoming a reality, and I can help you make a plan to achieve them. Give me a call today at (705) 315-0516 and let’s schedule a virtual meeting to discuss your financial options when it comes to investing and your goals to see which path makes the most sense for you to take depending on your situation specifically.