The First Step You Must Always Take after Receiving an Inheritance

Posted by Justin Havre. on Thursday, August 30th, 2012 at 10:49pm.

Calgary's population is aging as the baby boomers get set for retirement and many haven't taken the time to do serious financial planning for the future. Even residents of the city that have a lower income should be sitting down and doing some sort of planning now before it gets too late.

Financial planning will give you the experience to deal with any type of inheritance that may be passed on to you in the future. It's estimated that $1 trillion in inheritances is passed along every year in the country. That leads many with a large amount of money all of a sudden and some have no idea how to handle it.

This can be quite a drastic change for people that have been living frugally and counting their pennies for years. What do you do if you suddenly have to handle an estate that has been left to different siblings and what should you be doing with the money that has been passed down?

The first step is always...

Taking a break and walking away from the money for a short time. It should be deposited into a bank account and then left untouched while you are getting used to the idea of having it. After you have come to terms with owning a large amount of money you can then start managing it better.

You'll find that you'll go through different stages as you are leaving the money untouched. You'll definitely go through a stage where you are tempted to spend some of it on frivolous things. Make sure that you let this stage pass completely before doing anything with the money. While you may decide to spend a small amount of it, the majority should be put into smart investments that will make your money grow.

GICs and real estate are two of the most secure investments you can make here in Canada. Before taking any steps or making any rash decisions about this newfound money you should track down a financial planner that you can trust so that you can discuss your options. This money can make a huge difference in your financial future as long as you make sound decisions in the present with it.

1 Response to "The First Step You Must Always Take after Receiving an Inheritance"

Susan, Fort McMurray Real Estate wrote: There's some great advice here on how to best handle large inheritance. Receiving inheritance can be tied up in a lot of emotions depending on the circumstances, and if you've never had access to large sums of money like that before it can seem "unreal": just numbers on a bank statement.

Posted on Friday, August 31st, 2012 at 10:25am.

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