Dear Kim,
I’ve received a life insurance payout following my mother’s death, and while it’s a blessing, it feels heavy to handle alone. It is a six figure amount that I know will be helpful for my future. What should I be thinking about before I do anything with it? I don’t want to make the wrong choices and regret anything.
Sincerely,
Cautious Beneficiary
Dear Cautious Beneficiary,
It is difficult to know what to do with a windfall like this. The first thing I would suggest is getting it out of your checking account so it doesn’t get inadvertently spent. I have seen that happen so many times.
The next step might be to sit down and look into the future to think about what these funds might be used for. It might be for your retirement, buying a new home, financing education for your children or grandchildren…the possibilities are endless. Sit down with paper and pen and just let your thoughts take you away; don’t limit them. Once you have everything down on paper, walk away for a bit and when you come back to the list, really look at each item to see if it fits with your goals and dreams. If not, cross it off. Continue to narrow it down until you have a few items that really resonate with you. Then decide where they fall… short-term, mid-term term or long-term. You can then invest the funds in an appropriate manner to meet those goals. Working with a planner could help you work through the process.
Kim
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