{"id":6151,"date":"2024-10-12T15:54:41","date_gmt":"2024-10-12T15:54:41","guid":{"rendered":"https:\/\/finderica.com\/how-do-i-avoid-wasting-my-surprise-4-million-inheritance\/"},"modified":"2024-10-12T15:54:41","modified_gmt":"2024-10-12T15:54:41","slug":"how-do-i-avoid-wasting-my-surprise-4-million-inheritance","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=6151","title":{"rendered":"How Do I Avoid Wasting My Surprise $4 Million Inheritance?"},"content":{"rendered":"\n
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Dear Penny,<\/span><\/p>\n

My mother passed away last year, and I am set to inherit her large house (worth $2.5 million) and additionally about $1.5 million. My husband, daughter and I already live in the house, as we were taking care of my mother before she passed.\u00a0<\/span><\/i><\/p>\n

My husband and I both make a modest living, so this inheritance will obviously make a huge difference to our family\u2019s financial security. However, we never expected to have this amount of money on our hands and want to make sure we invest it responsibly so that it can be a long-term benefit to our lives and our daughter\u2019s future.\u00a0<\/span><\/i><\/p>\n

We feel like we don\u2019t know where to begin to think about making wise investments. Real estate? Stocks? Just save it up all in a high-yield savings account or CD? Where or who can we go to for the most trustworthy advice on what to do with this money?\u00a0<\/span><\/i><\/p>\n

Obviously, this is the best kind of problem to have, but we want to make sure we don\u2019t blow it all on silly spending.<\/span><\/i><\/p>\n

\u2014 A.<\/span><\/i><\/p>\n<\/div>\n

Dear A.,<\/p>\n

People often feel pressure to make big decisions right away when they receive a large inheritance. But rarely is there a need for this sense of urgency. You don\u2019t need to make any big decisions right away. In fact, acting too quickly can cause you to make emotional decisions that aren\u2019t in your best interest.<\/p>\n

Because you asked for advice about investing your inheritance, I\u2019ll tell you what I\u2019d do if I received an unexpected windfall: I\u2019d put aside enough money in a high-yield savings account to cover a year or two\u2019s worth of living expenses. Then I\u2019d invest the rest in a low-cost index fund that tracks most of the U.S. stock market, like an S&P 500 fund.<\/p>\n

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