Receiving an Inheritance
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.
Determine Your 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.
Pay Off Debts
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.
Set Up an Emergency Account
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 could 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.
Invest For the Future
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.
Now may be a good time to visit with a registered State Farm agent who can discuss your current needs and opportunities and help you develop a plan to fit your goals.
Find an Agent
Investing involves risk, including potential for loss.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value