Dear Kim,
My mother passed away last year, and my portion of the inheritance was significant. It’s more money than I’ve ever had at once, and I’m overwhelmed by it. How can I be a good steward of my mother’s gift?
Sincerely,
Overwhelmed Heir
Dear Overwhelmed,
I understand that inheriting a large sum of money can be overwhelming. Sit down for a bit and consider what this gift means and what it might be able to do for you. What would your mother want for you with this gift? Is it money to be set aside for your retirement, to help educate your children, or to fund experiences? It could be a little of all those things and maybe some others.
Make some notes about how you would like the money to serve you, and make that your starting point. Invest the funds in a way that can help you meet those goals. If it’s retirement, and if that is a long way off, some good equity index funds might be the answer. If it is to fund something that will occur in the next couple of years, consider a savings or money market account. It may help to think of the funds as buckets instead of one lump sum, and invest each bucket to serve that goal.
It would likely be beneficial to partner with a trusted professional to navigate this gift. They can help you find investments that fit your goals and give you some clarity and peace of mind.
Good luck!
Kim
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