When you inherit money from a family member, it’s important to be smart about it. The first thing you’ll want to do is consider seeking advice from a financial planning service. Let’s delve into some tips on how to work with a financial planning service to manage the money you’ve just inherited.
Consider How the Money was Given to You
Perhaps your money came to you in the form of an IRA. Maybe your funds are currently in a savings account at a local credit union. It’s crucial to understand the form that the inherited money is in.
If you have inherited money through an IRA, there are specific rules that you must become familiar with. A wealth planner or financial advisor can go over these rules, as they can be a bit complicated for many to understand. Regarding money in a savings account with a bank, you may be able to withdraw the money and use it right away.
Look at the money in the vessel it was given to you. Then consider the proper channels to help maintain it, grow it, or use it as you seem fit. Financial planners can help with inherited funds and help you make smart decisions about how and when to access them.
Think About Your Immediate Needs
Receiving inherited money can be a blessing. You may think of spending your inherited funds on a much-needed vacation, business start-up expenses, or even on debts that you’ve been working to repay.
Think of your immediate needs for the money and then talk to your financial planning service to plan accordingly. Even if you are only able to save a small percentage of what you just inherited, a reputable financial planning service can help you invest the funds so that they mature and benefit you in the long run.
Many people spend money that they just inherited on lavish items, but Social Security funds are only designed to replace just 40% of your income. With little security in future funds, it’s wise to step back and really think about how you’re going to use your inherited money. That’s why working with a financial advisor is so important. Contacting a financial service can help you learn how your money can work for you once you decide to retire.
Think of Your Own Inheritance
Perhaps you have children of your own and want them to have sound financial footing later. Your inherited funds are indeed a blessing that can have a lasting impact on your life, if well managed. So, consider continuing the legacy and make plans to bequeath an inheritance to your children. Think of the gratitude that you felt once you learned that your loved one wanted you to be financially stable in the world. Now, think of how amazing it will be to leave your children on strong financial footing when you’re gone.
If you’ve been searching for a reputable financial planning service in Libertyville, IL, we would love to assist. We also offer estate planning, retirement planning, and more. Connect with us today for sound financial services.