Thank You, Aunt Susie – Investing An Inheritance

52 Simple Ways to Manage Your Money – 47. Thank You, Aunt Susie – Investing An Inheritance

What it is …

Money received due to the death of a friend or relative. The money received is not taxable, but the interest or profit gained on the money is taxable unless invested in a tax-free investment.

How it helps…

Additional income can be used for a variety of purposes.

Brings you closer to your goals.

How it hurts…

The responsibility can be paralyzing.

An inheritance often comes with emotional ties.

Keys to action…

Review your goals and objectives.

Create a plan for the use of the money which may include allotments of different amounts for different purposes.

If you are investing any portion of the inheritance, reread the chapters on investments.

SET IT UP

Accept the windfall with the knowledge that the giver wanted you to have the funds.

STEP ON IT

Allow yourself some time to make sound decisions. Avoid making sudden decisions.

STEP ON IT +

Grant yourself permission to take responsibility for the money.

Notice…

Your reaction to receiving the money.

The meaning you give to the money.

Your readiness to make decisions about the use of the money.

But what if…

I feel overwhelmed?

  • Take the time necessary to process any feelings about the money.
  • Keep the money in a certificate of deposit or money market until you feel ready to move.

Thought primers…

When I received this money, I felt…

As I think about spending this money, I…

As I think about investing this money, I…

To me, this money means…

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If I could use this money in any way I wanted, I might…

If I use this money wisely…

Thank You, Aunt Susie - Investing An Inheritance
Thank You, Aunt Susie – Investing An Inheritance

“Enter upon your inheritance, accept your responsibilities” — Winston Churchill