Inheritance Tips For Millenials
Garza Legal Group thinks that about $30 trillion in assets (inheritance) will pass from Boomers to their children over the next 3-4 decades.
Creating a strategy for this influx of money is imperative. With intelligent planning, you can truly achieve financial stability for the rest of your life. However, loss of a loved one is a tragedy and can be hard to get over, a big reason why a comprehensive financial strategy never gets finished. Delay any major decisions before you develop a plan. We recommend these five strategies for optimizing your new influx of cash.
Cash, stocks, bonds, oh my.
Cash is simple but what if you receive stocks, bonds, IRAs or a 401(k)? Or other assets? Each kind of asset come with different implications. Talk to us about your inheritance today, and we can help sort things out.
Pay off that debt.
If you have high-interest debt, pay it off ASAP – that money is just being burned through.
Deciding on what to pay off, depends on many factors though. If you have trouble deciding, give us a call today.
Start an emergency fund.
Have at least three to six months of living expenses available to use at a moment’s notice. That way you can avoid piling on high-interest debt if something bad happens to you.
Begin saving for retirement.
Start contributing the maximum amount to a retirement savings account. High taxes can help you accumulating wealth, so take advantage of tax-advantaged 401(k) plans, IRAs. These can make a positive impact on your bank account in some time.
Have a LITTLE fun.
Depending on the amount of your inheritance, it might be a great time to take a dream vacation or even just a shopping spree that you wouldn't normally allow yourself to take. Don’t go overboard, of course, it’s alway good to think in the long term and save.