What would a financial planner model before making a recommendation on a large inheritance?

Question

What I want to understand is this: what would a financial planner model before making a recommendation on a large inheritance? The part that needs sorting out is that someone received a substantial inheritance and wants a deliberate plan before making large purchases, debt payments, or investments.

Soradin · Accepted Answer

When the household's goals are considered, a large inheritance does not require an immediate investment decision. For the household plan, run more than one scenario because a recommendation that works only under one return, inflation, or longevity assumption is fragile. For the household plan, money needed within a few years should generally be separated from money that can remain invested through a long market decline.

What would a financial planner model before making a recommendation on a large inheritance?

Soradin

Need help with your situation?