September 2nd, 2021

What should I do with my inheritance?

If you've come into an inheritance, chances are likely that a loved one has passed. This will most likely be a difficult time for you, so it's important to refrain from making any rash decisions (for example, booking a month long vacation). Instead, it's suggested that you consider your long term goals, and put a heavy focus on securing your financial future.

Here are some ideas for what you could do with your inheritance:

1. Pay off large debt, primarily any high-interest personal debts or loans you might have. Paying off a credit card is a perfect first step.

2. Look into a TFSA (Tax-Free Savings Account), RRSP (Registered Retirement Savings Plan), or if you have children, an RESP (Registered Education Savings Plan). Our advisors can help you decide on a plan that is right for you.

3. If you don't already own a home, it may be a good idea to use your inheritance for a large downpayment on a mortgage. (We can advise you on whether or not this is a good move for you.)

There is usually a waiting period before an estate is settled, and funds are distributed (anywhere between several months to several years), so you will have some time to think things through.

We recommend that you seek advice from a professional, and try not to act spontaneously.

Lastly, it's a good idea to update your will as soon as possible – which should be done when any family or financial situation is changed.

If you're interesting in talking to one of our advisors about financial planning, reach out to us today

- Spire Advisors of Assante Capital Management Ltd.