Losing a family member is always a distressing and emotional time. You may also have the added stress of receiving an inheritance and knowing how to deal with a potentially substantial sum of money.
Research has shown that when people come into money unexpectedly, they will treat it differently than the money they have earned.
Many people have regrets when it comes to receiving an inheritance as they rush decisions, make poor choices and feel the burden of having to spend their funds in a specific way.
Your decisions will often be determined by your financial position and your stage of life. Below are some common ways that an inheritance can be spent
- If you have a mortgage, you may choose to pay it off
- If your superannuation is still in a growth phase, you may wish to top it up with a non-deductible personal contribution
- If you’re in a comfortable financial position, you could consider sharing the inheritance with your grandchildren to help them get ahead
- If you have a big holiday that you want to tick off the bucket list, now may be the perfect time
- If you want to invest, you could consider shares or opening a high-interest term deposit
There is no need to rush these decisions during a time of sadness and stress. We always recommend taking your time and seeking financial advice when you are ready. An expert will be able to help you make the smartest decision for your family and your future. Discussing your goals and plans with a financial adviser is the best way to put the funds to the best use.
Stressed about what to do with your inheritance? Chat to the team at APS Financial Planning.