How can I avoid wasting an inheritance?

Question

As things stand, I recently received an inheritance after losing a close relative. At the moment, the money is still sitting in a bank account while I sort out taxes, debt, retirement savings, and a few near term goals. At the moment, I do not want grief or pressure from family to push me into a fast decision. This choice affects my spouse or another family member too, so liquidity, taxes, and flexibility matter more than they would if I were deciding only for myself.

Soradin · Accepted Answer

Define what the money should accomplish, create spending limits, and separate long term funds from money available for enjoyment. For this planning decision, before investing an inheritance, set aside money for near term needs, taxes, debt decisions, and an emergency reserve. This decision should be judged in the context of the entire household plan, rather than focusing on the account or product in isolation.

How can I avoid wasting an inheritance?

Soradin

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