The “Great Wealth Transfer” is expected to take place during the next couple of decades. It’s the term used to describe the point where the Silent Generation and Baby Boomers will, upon their death, pass on their money and assets to their children.
When you receive a large inheritance, it can be tempting to go out and spend it all on things you’ve always wanted. But before you do that, it’s important to take some time to think about how you want to invest the money. Here are a few tips for investing a large inheritance.
Invest in a Solid Education
Going back to school is a worthwhile investment because you’ll be gaining marketable skills that will potentially increase your income.
Millennials who have accrued debt by taking out student loans may be hesitant to pursue higher education once again, but as a professional, going back to school is beneficial. Now that you don’t have to be in debt to study, you likely will have far better luck with your career. You can gain new skills and mastery of an industry, which will help you secure a higher position with better pay or a completely new profession.
Invest in a Business
Owning a business can be both easy and hard. You have total control over the work that you do, including your income. However, you will have to take on all the responsibility for its success or failure. But if successful enough, it could be profitable for decades.
Millennials who want to find a way to set up their own business should look into starting something online. That is because business can be conducted from anywhere, and with the digital era upon us, it’s easier than ever before.
Those who have no background in business can explore franchising opportunities. Aspiring entrepreneurs who are interested in finance and automobiles can start a car loan franchise. People who like food should go for restaurant franchising. There are many options available, and it’s up to you in which direction you want to go.
Invest in Real Estate
Real estate is an excellent investment vehicle because it has long-term growth potential. You secure a room over your head, and you have a tangible asset that likely will appreciate in value in the future. Once you’re ready to move on to a bigger home, you can sell it and earn a profit.
You can also turn your real estate into a stream of income. You can turn it into a rental property. If you have a large enough house, you can also consider becoming a host through Airbnb. This will allow you to let others stay in your home while earning extra income.
You can even buy a farm for when you’re older and want to retire somewhere quiet. Or a ranch if you’re looking for somewhere to vacation in the future
Invest in a Healthy Lifestyle
Physical fitness is another worthwhile investment because of the health benefits it provides. It helps relieve stress and anxiety, boosts your immune system, eases insomnia, and helps control depression.
In addition, exercise can help you lose weight which may prevent diseases such as diabetes. It may also help you reduce high blood pressure and high cholesterol which can decrease the risk of heart disease. You can take up a sport or join a gym to start your journey toward better fitness.
You should also eat a balanced diet. Consuming large amounts of fast food can lead to obesity and increase the risk of certain diseases. It’s a good idea to incorporate more fruit, vegetables, and whole grains into your diet. You can also consider drinking more water than you normally do because it’s healthy and inexpensive.
Start Saving for Retirement
The stress over money is something that’s common among millennials because many of them feel like they don’t have enough. But the earlier you start saving, the better it will be for your future self
As you begin earning more and spending less, you should put some money in a retirement account such as an IRA or 401(k). Either way, make sure to take advantage of the tax benefits that come with both accounts
You should also consider getting life insurance, which you can use to help pay off any debts in the case of your death. You’ll always want to leave your family with enough money for them to survive in the event of a tragedy.
Investing in a healthy lifestyle is one way to protect your future self. Even if you don’t choose any of these, it’s best to think about investing your large inheritance in something that will bring you long-term benefits.