What to Do With an Inheritance?
Baby Boomers are expected to inherit roughly $8 trillion from their parents and formulating a plan for receiving that money prior to receipt can pay off in the long run. Sharon Epperson posted an article which describes some key factors to keep in mind when deciding what to do. In it, she notes that the first step in making the most of an inheritance is to outline your financial goals. Many boomers will be able to fund their own retirement and may be able to pass on money to their own children. However, she does highlight a caution to not fully rely on an inheritance to fund your personal retirement. Many factors could come up such as unexpected medical issues that could drastically reduce or even deplete the funds.
The other two recommendations that she describes are to outline your short- and long- term goals as well as pay all taxes immediately. We of course would like to add a recommendation to consult with licensed retirement income specialist for guidance. For more specifics, please read the full article linked here.
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