What to Do With a Large Inheritance in Vancouver BC

What to Do With a Large Inheritance in Vancouver BC

Receiving a large sum of money via an inheritance in Vancouver BC can sometimes leave a beneficiary feeling lost.  Many people are not accustomed to managing unallocated funds on a larger scale.  The reactions can range from leaving the funds untouched in a bank account to spending it all on travel.

Here are just a few things you can do when receiving a large inheritance in Vancouver BC.

1. Small Splurge as a Release Valve

A small splurge at the beginning can help serve as a release valve so that there is less temptation to spend a much larger amount on unneeded items or services.  For example, you can consider replacing an aging microwave with a shiny new one rather than to immediately splash out on a brand new car.

2. Pay Down Debt

While not terribly exciting, it is usually prudent to use excess funds to pay down your debt.  This is easier to do when you have a large unallocated sum such as an inheritance.  It is much more difficult to accomplish while trying to squeeze debt payments out of your paycheck income.

3. Set Aside Money for Taxes

Depending on the form of inheritance, such as from a registered account, you may need to set aside some funds to pay taxes.  It is best to consult your Vancouver tax professional for advice.

4. Invest It

Finally, you should consider investing a good portion of it to accomplish your future goals.  Your goals may include retirement, saving for a down payment on a home, or for a child’s education.

5. Contact an Advisor

Consult an Advisor from Venture First Advisory for the right investment options for you.