Sudden riches can have an interesting effect on people. For many, their basic instinct is to spend their newly acquired wealth on products and services for personal amusement. And while that might not be completely unreasonable, overlooking the process of financial planning, even with inheritance, is.
Many of you might be thinking “how often does x amount of discretionary funds come into my hands?” That is a perfectly understandable reaction. However, when one takes the time to truly consider the opportunity they have, regardless of the total assets, it becomes quite clear that an individual has a chance to put themselves in a more comfortable financial position for the long term.
That is what Kira Brecht of dailyfinance.com will go on to explain in her article. It details some of the most practical strategies for allocating said funds, such as using a portion of one’s inheritance to pay off college loans, or maximizing their retirement accounts like a company 401K or a Roth IRA.
To read the article in its entirety, click here.