A rich, distant uncle dying and leaving you all his money may sound like good luck, but any financial windfall should be managed carefully if you want to conserve it for the future. Remember these tips if you come into some money:
- Stash it away. Put the money away for at least six months. Trying to decide what to do with the money too soon after a relative’s death may lead to questionable decisions. Put it into a money market or savings account for a little while.
- Assess your debt. Before you decide to invest in stocks or buy something with the money, determine whether the money would be better spent wiping out any debt you currently have.
- Seek advice. If you receive more than $20,000, consider hiring a financial advisor who can suggest a way to safeguard it while getting the largest or safest return on your investments.