November 14, 2022
Question:
Recently I inherited money; I want to honor the use of that money, but I don’t really know how. Do you have any suggestions?
Answer:
Was it from an IRA? Read more about the 10-year rule: IRS Issues Ruling on 10-Year RMD Rule | ThinkAdvisor
Becky Suggests:
Take your time and let the money sit for a little while.
Make a list of your goals and see if any of the goals could be funded with this money.
Then think about if you would feel fulfilled by using the inherited money in that capacity.
Kate Suggests:
You may be overwhelmed by the decisions and options available. Working with a financial planner can help to give you direction, to prioritize and work through various scenarios you may be considering.
If this was an unexpected windfall this can be a unique psychological experience. Don't feel pressured to make any immediate decisions while you process the emotions behind the inheritance. If you are dealing with strong emotions around this money we would encourage you to speak with a therapist. There are also many books written on the topic of handling a financial windfall.
Amy Suggests:
Be aware of possible conflicts this new wealth can bring you. Money and emotions are tied tightly together. If you are married, make sure you and your spouse understand what this money is going to be used for so that there are no hurt feelings. That does not mean you should title the assets in a joint account; it just means you should have an understanding of how you will use this wealth.
We also have a checklist that may be helpful:
What Issues Should I Consider If I Experience a Sudden Wealth Event?
Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.