Inheritance Advice
STEP 1- Access how long it would take you to save the amount of your inheritance.
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How long would it take you to save the amount of money you are inheriting? Ex. If you are inheriting $500,000 and could save $2000 per month, it would take about 20 years.
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If you saved for 20 years and accumulated $500,000, would you still spend it the same as a windfall?
STEP 2- Show the impact of your windfall long-term if you invested it wisely.
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If you inherited $500,000 or more and have 20 years until you retire, what would the future value potentially be?
Using the Rule of 72, which tells you how many years it takes your money to double means that at a conservative return of 7%, your money would double every 10 years.
Example (20 years)
$500,000 would double to $1,000,000 in 10 years and double again to $2,000,000 in 20 years.
For the future value of your inheritance, page down to the Future Value Calculator.
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You have an opportunity to change your future wealth picture for you and your family. One strategy would be to invest your inheritance and use the dividends to make improvements to your home or take an extra vacation.
For every $250,000 inherited, you could potentially take $1,000 per month and still grow your wealth over time.
STEP 3- Visualize scenarios of spending inheritance vs. investing
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Visualize how different your life would be if you invested your inheritance vs. if you spent it unwisely.
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An inheritance can be life-changing. What would your parents or grandparents want for you?
Your Future Wealth
How Should Invest Your Inheritance?
Ambiguous terms such as "conservative" or "moderately-aggressive" cause confusion in the investment arena. That is why we use Riskalzye™ by Nitrogen Wealth, because generalizing client risk tolerance doesn't work. Investors view risk through their own, unique lens to gauge risk and return tradeoffs.
The Risk Number is calculated based on downside risk. On a scale from 1 to 99, the greater the potential loss, the greater the Risk Number.
Watch the Video Below To Learn More:
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Brian Muller is an Investment Advisor Representative (IAR) of XY Investment Solutions, doing business as Momentous Wealth Advisors LLC, a SEC Registered Investment Advisory firm.
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