3 Smart Strategies to Grow Your Inheritance

It can be bittersweet…  you and your family are grieving your Grandfather or Aunt, and you find out they kindly left you with an inheritance. We see it in movies time and time again, someone is the heir to their relatives will and it feels sort of like they won the lottery. If you are considering spending your new large sum of cash on luxurious items like boats, cars and expensive vacations you should re-evaluate your decisions. Focus your finances in places that will give you returns down the road. We have provided 3 smart strategies to grow your inheritance, so you can make decisions that will positively impact you and your family in the future.

1. Talk to a professional

The most important step is talking to a professional. You do not want to invest into something you are not educated about. By talking to someone in a specific industry you can have all your questions answered to ensure you make less mistakes. If you are seeking a professional and not sure where to begin, we have team members that can give you ideas on successful investment strategies. Contact us here for more information.

2. Learn ways to diversify your portfolio

Step 01. Build a portfolio:

Investing your money is the only sure way you can let it grow. You can invest into IRA’s, stocks, bonds… which are all popular ways of investing. However, it would be most beneficial to invest in an industry with a proven higher ROI. Did you know investing into notes has 20-40% ROI? 

Step 02. Diversify your portfolio:

Once you have a portfolio built up, you should strongly consider diversifying your portfolio. During 2008, many traditional real estate investors were devistated when the housing bubble popped. Around this same time, the note industry actually had one of its most profitable years yet. Consider investing into asset classes that rock through recessions.

3. Choose long-term goals

During the past 20 years, REITS have outperformed all other asset classes (like oil, stocks and bonds, gold, etc.) by offering the largest ROI. What does this mean for you? 1. REIT’s are consistent, 2. REIT’s are a great long-term play.

Another way to invest in long term plays would be investing into re-performing notes. When you purchase a note, you are purchasing the debt to a home and you now become the bank. With a re-performing note the homeowner is paying you their monthly mortgage payment for the duration of the loan… sometimes for 10, 20, or even 30+ years. Every month you would receive passive income with minimal effort on your part.

While it can be tempting to spend your new inheritance on items that are more luxurious, it is much more beneficial to you and your family to create opportunities that will set you up for a more successful future.