Making The Best Use Of What You Inherit
When you get a windfall of cash, or an item of value, all sorts of thoughts might begin to run through your mind as to how you spend or invest it. However, before you jump into any purchases, you should stop and think first. If you want to make the most difference with anything you inherit, little or large, you should know how to get the most out of it first. In this contributed post, we’re going to look at how you can do that.
Take Inventory, First
While you might feel compelled to start making use of any assets you have inherited in a will, you should wait. It’s often an emotional time immediately after inheriting, given that it so often involves the death of a loved one. Aside from making sure you don’t make rash decisions, it also gives you the time to pause and take inventory. List everything that you have inherited, from financial accounts to real estate, and other valuables like heirlooms and collectibles. If you’ve inherited any debt, you need to take stock of that, too, and make sure that you do what you can to pay it off before you benefit from the rest of the proceeds. This gives you a clear picture of potential value, responsibilities, and opportunities.
Make Sure You Get What It’s Worth
When you have an inventory of all of your assets, you may find that there is more in the form of possessions rather than money. There may be some that you would like to keep, whether for sentimental or practical reasons, but don’t feel like you’re obligated to keep hold of everything. Selling to make use of the proceeds, such as by turning inherited jewelry into cash, could be a lot more useful and valuable to you than keeping hold of it and getting no use out of it. Don’t sell them impulsively to just anyone, however. Pawn shops and other general online auction sites often undervalue items, especially those that are rare or unique. Find reputable appraisers who are experienced in buying those kinds of assets. They’re a lot more likely to see their real value.
Spend With Purpose, Not Pressure
When you get a windfall of cash or get a lot back from the proceeds of selling assets left to you, there can come a certain pressure to spend it. Many people think they should make big purchases or donations in honor of their loved one. However, if you take some time to think about it, you might discover or remember a purpose that you’re not thinking about right now. Whether that’s putting a downpayment on a house, getting yourself clear of debt, or setting up for your retirement, you should let your practical needs and long-term plans take preceded over any feelings of urgency or guilt.
At the end of the day, once you inherit money or assets from a loved one, they’re yours to do what you please with. However, the average person doesn’t get such a windfall too many times in a lifetime, so it might be wise to keep some of the tips above in mind. You may also want to talk to a financial advisor or coach, like me. I offer a free 30 minute discovery call. You can find a day & time that works best for you HERE.
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