Coping with the loss of a loved one is never easy. Receiving an inheritance represents an emotional time in your life, but it may also present you with an opportunity to plan for some financial goals.
When you're ready to invest or spend your inheritance, you should think about your short-term and long-term goals. For example, you may want to save for buying a house, fund a child's college education, or save for a longer-term goal such as retirement. By determining what your financial goals/priorities are, you can then take the best course of action. Keep in mind that there may be tax implications from receiving an inheritance.
You may want to use your inheritance to pay off or reduce outstanding debts such as credit cards, student loan(s), car payment(s), etc.
One way to make the most of your inheritance is to set aside a portion of the money in an emergency savings account. Saving money separate from regular savings or checking accounts may help you cover any unforeseen expenses without setting you back financially. Additionally, you may wish to use your inheritance to protect yourself and your family with various forms of insurance coverage such as health, life, homeowners/renters, and/or auto.
Some long-term goals, like retirement, may require a significant amount of money. Ensuring that you have the financial security for a comfortable retirement requires smart planning and a disciplined approach to saving and investing. State Farm® has a number of account options that may be right for you.
Investing involves risk, including potential for loss.
Neither State Farm® nor its agents provide tax or legal advice.
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