Who would have thought that blowing your inheritance would be a major issue for baby boomers, millennials and any other group that stands to inherit a large sum of money from their parents and family? Turns out that this is a major problem for over 33% or one in three consumers across the continent. They receive money from an inheritance and then spend it in various ways and sometimes have little to show for it other than a good time or a few extra material things such as cars and toys. With many consumers not saving sufficiently for retirement we wonder why more do not invest these funds and at least live off the income?
Blowing Your Inheritance
Trillions of dollars will change hands as baby boomers exit the world and transfer their wealth to their families over the next 20 years. We happen to believe that a significant amount of this money should be placed in investments to help fund retirements in the future. Most advisers would suggest that even one million in savings is not enough to ensure a comfortable retirement these days. When you have a chance to save your money towards retirement, especially if you do not have any savings or very little savings, why not take it. This is not winning the lottery.
The experts agree that one of the best ways to deal with an inheritance is to place it in a secure savings account, perhaps a GIC. Let it sit there until you have emotionally dealt with the emotions surrounding the inheritance. You need time to get over the death of your family member. You need time to get over the idea of having all of this money. Time is required to formulate a plan regarding what you will do with the money.
Spend some of it to pay off debt that you may have, buy yourself a small reward of some kind. But invest the majority of the funds into an investment that will work towards making your retirement more secure. It would be a real shame to squander the money and then end up living in less than ideal conditions during your retirement years!