7 Tips for Investing an Inheritance
Mull the tax consequences and the investment merits, and above all don't rush.
"What should I do with the money I inherited from my mom?" my friend texted me. "The check has been sitting on my sideboard for two months."
Her paralysis is understandable. Many people who inherit assets are still processing the loss of their loved ones; investing the money may seem like the furthest thing from their minds, or an unpleasant reminder of the permanence of the loss. If the inheritance is particularly large, it may swamp the other assets in the investor's portfolio.