Tue May 28 2024, by Tyler Gardner

Smart Financial Strategies for Women in Their 30s and 40s Receiving Inheritance

If you're a woman in your 30s or 40s and you're banking on that $100,000 inheritance from grandma to make you a millionaire, you need to do the following three things right now.

1. Secure Your Inheritance

When you receive that money, put it into a secured account immediately. This can be a high-yield savings account, a brokerage account in which you invest in money market funds, or even just a personal savings account. This will allow you to keep the money while you take a breath.

Do not make any major investing decisions in the first three to six months of getting this money. Consult with an advisor, consult with your family, and allow your emotions to cool before you decide on the appropriate plan of action.

2. Avoid Unaffordable Purchases

Do not use this money to put a down payment on something that you cannot afford. That will just dig you deeper into debt. Instead, if you really want a 20% guaranteed return immediately, consider paying down your credit card debt. I know, it's not sexy, but it's a lot sexier than living beyond your means and accumulating more debt.

3. Allow Yourself Some Freedom

Finally, do allow yourself to spend 15 to 20% of that inheritance on anything you want. Why? Because you are going to be tempted to do it anyway. You might as well put a hard cap on what you're allowed to spend now, and invest the rest into a long-term core strategy.

This approach will set you up for long-term generational wealth, allowing you to leave that same gift to your kids.

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