What to do when you inherit millions of dollars?

Inheritance DO’S:

• DO put your money into an insured account.
• DO consult with a financial advisor.
• DO pay off all your high-interest debts like credit card loans, personal loans, mortgages and home equity loans should come next.
• DO contribute to a college fund for your children if you have them.

What does the average person inherit?

Average Inheritance in the United States According to a 2015 HSBC survey, American retirees expect to leave an average inheritance of almost $177,000 to their heirs. The Survey of Consumer Finances (SCF), reported that median inheritance was $69,000 (the average was $707,291).

What does generational wealth look like?

If you can leave behind a notable amount of money or assets, that constitutes generational wealth. These assets can include real estate, stock market investments, a business, or anything else which contains monetary value.

What happens if you inherit a large amount of money?

No matter how large or how small your inheritance, manage it with care and pay it forward. Research suggests that 70\% to 90\% of people who inherit significant wealth immediately fire the financial advisor who worked for their parents. But losses can soon follow.

What should I do with my inheritance money?

Think Before You Spend. The first thing many people do when they inherit money is to look for ways to spend it. Some buy new clothes, a flashy car, a European vacation, a beach house, and on and on until the money runs out.

Should you use an inheritance as a retirement fund?

Then it becomes something more reliable than a giant lump of money. The other option, of course, is to use the inheritance like a giant lump of money. If your retirement picture is a little rosier, then you can afford to draw from the inherited money as you need it, so it becomes more of a lifestyle fund than a basic needs fund.

Is inherited money good or bad for You?

The prevailing notion is that there’s more of an emotional connection to inherited money, which is good and bad. It’s good in that people are less likely to go all “purple Lamborghini” with their parents’ hard-earned money and will plan things a bit more carefully.