Coming into an inheritance can be a life-changing moment, both emotionally and financially. Whether it’s money, property, or investments left behind by a loved one, it’s common to feel unsure about what to do next.
You might be asking yourself:
“Should I invest my inheritance? Should I use my inheritance to pay off my mortgage? Do I keep my inheritance safe in the bank?”
At Stockspot, we help Australians make calm, confident decisions about their financial future, especially during key life milestones like receiving an inheritance. Stockspot Consultation gives you clear guidance on how investing in a diversified portfolio could help you achieve your goals. This service is fee free and obligation free.
What receiving an inheritance could mean
An inheritance could come in many forms, and may require additional thought, planning or navigation depending on your personal circumstances. This could include:
- Managing a share of a parent or grandparent’s estate
- Receiving a lump sum from a life insurance policy or cash savings
- Inheriting shares, property, or a family business
- Navigating a complex estate with siblings or relatives
What to do first
Receiving an inheritance can be emotional. Before making any big decisions:
1. Take your time.
There’s no need to rush. Consider parking the funds in a high-interest savings account while you assess your options and recover emotionally. Grief can cloud judgement. Give yourself time to grieve and consult people you trust.
2. Understand the tax and legal side.
Not all inheritances are tax-free. It’s worth speaking to a professional about capital gains tax, estate law, or transferring property titles. Identifying your tax obligations early can avoid you making decisions that could cost you later on.
3. Consider your own financial situation
Once you’re ready to take action, it’s worth considering your own financial situation prior to receiving this money, as this could impact how or where you utilise your inheritance. Consider:
- Paying off high-interest debt
If you’re carrying credit card or personal loan debt, consider using some of your inheritance to clear it. This can be one of the most impactful financial moves. - Build an emergency buffer
A solid cash buffer of 3- 6 months’ expenses provides peace of mind and future flexibility. - Invest for the future
Investing part of your inheritance could help grow it over the long-term. Stockspot portfolios are designed to match your goals and risk tolerance and time horizon, and offer a diversified, low-fee, managed solution for investors. This means you can decide how long you think you want to leave your money invested and we’ll find a portfolio that is risk aligned to that time horizon.
Explore how Stockspot can help you invest an inheritance
Stockspot advisors can discuss with you what your life goals are, and what you want to achieve from your investment. Do you want to grow your inheritance to use for a home deposit, build some money to help with family planning, or simply looking to nurture a nest-egg for greater long term financial security. A financial strategy can ensure your inheritance supports those goals, not just short-term spending.
Through Stockspot Consultation, we offer investment guidance to help you:
- Understand your investing goals with inherited funds
- Align your portfolio with your values – such as sustainable investing
- Invest in a smart, low-fee portfolio
- Make informed decisions without pressure
Whether your inheritance is $2,000 or $5 million+, our experienced team can help you plan wisely.
We advocate for simple wealth management solutions that don’t cost you your returns. Both data and feedback from Stockspot clients indicate that complex strategies often underperform simpler investment structures, like those offered at Stockspot.
At Stockspot, we advise our clients to invest in a diversified selection of ETFs. This strategy has consistently outperformed similar funds over the long term.
Want to know more about Stockspot?
Stockspot is Australia’s largest online investment adviser, helping over 16,000 Australians grow and protect their wealth with evidence-based, low-cost portfolios. Find out about our portfolio performance here.
