Grow Your Inheritance
You might think a relatively small inheritance — e.g., $25,000 to $75,000 — won't go too far, but you can really cash in by allocating the funds wisely. Marc Johnston-Roche, co-founder of Annuities HQ, acknowledged the temptation to splurge with your newfound worth, but advised investing instead.
"Work with a financial planner to create an asset allocation strategy that's suitable for your age group," he said. "This strategy will vary based on how much risk you're willing to take, and how much time you're planning to invest these funds for. It's definitely not a one-size-fits-all approach, so it's important to get some professional guidance."
To realize significant growth, Johnston-Roche recommended leaving the funds relatively untouched for the next five to 10 years.
"Additionally, by investing your money now and letting it grow, you'll be able to take advantage of compound interest," he said. "Compound interest can accrue significantly over time when you reinvest earned interest rather than paying it out."
Laura Woods contributed to the reporting for this article.
Up Next: The 10 Fears That Are Keeping You From Being Rich