4 Ways Women Can Prepare for an Inheritance

4 Ways Women Can Prepare for an Inheritance

January 06, 2022

Why is this article focused on women? It’s simple. My target market is women, and they tend to do better with investing and financial management than men. Female investors earn better returns than men and lose less on average

There are a couple of reasons for this. The first is that women are significantly more cautious about their investing practices and do more homework than men, who tend to make gut decisions. The other is that women have more patience and are willing to wait for their investments to grow over time

That is nothing against men, but the whole reason I bring this up is that when a woman receives an inheritance, I want to jump into action. Education is the number one way to ensure a woman will do better with her new financial windfall. If I can help women feel financially educated and capable of making data-driven decisions, I will consider myself a success. 

An inheritance is considered a Wealth Event or Instant Wealth which I have written about in previous blog posts which are summarized here

It’s a Matter of Fact 

No one is trying to be morbid, and by no means do we want to lessen the emotional weight of dealing with a sudden loss in the family. However, the sad truth is women outlive men. Whether it is because we are more likely to visit a doctor when sick or tend to not push the button that says, “Don’t Push,” women live longer, which means they deal with a sudden inheritance more frequently. 

Whether your financial gain is from your loving husband, long-lost Aunt, or somewhere in-between, there are some tips you should keep in mind when you are planning to manage an inheritance. 

1 - Slow Down 

I get it. You have money in your pocket and want to treat you and your friends to a night out and shopping trips. That is beautiful and maybe okay, but first consider some other needs. Slow down your decision-making and make a plan that you stick to with your finances. Go ahead and prioritize yourself for a change and consider if you will be financially protected in the future. 

2 - Get Financial Education On 

The beauty of the internet is practically endless free and expert resources to teach you everything you need to know about finances. That doesn’t mean you have to be the next Bill Gates in the making. It means you need a workable budget that considers your new inheritance and smoothly works it into your expenses so you can enjoy and hopefully elevate your quality of life. 

3 - Don’t Quit or Forget Taxes 

I’ve seen it so many times. A fantastic female client comes into the office with the largest check they have ever seen and a gobsmacked expression because they just quit their job. Please don’t do these ladies. I’m not saying you cannot quit. I’m saying push pause on that Devil Wears Prada instinct and first make sure everything is covered for your new financial decision. That includes taxes. With every inheritance comes the financial responsibility of paying tribute to big brother. 

4 - Get Support! 

That naturally leads me to the last and probably most important tip. Get help! If you are one of the lucky ones in the world, you’ll probably only have to deal with this situation once, maybe twice in your life. That means you will not have the natural experience to manage everything. That isn’t a bad thing. You shouldn’t be expected to fly a plane across the globe if you’ve only sat in the Captain’s chair a couple of times. 

That is why getting qualified professional financial advice from experienced team members like those at Meyers Financial Services is critical. We have spent years perfecting our wealth management services and have helped numerous clients when they experience financial gain from an inheritance. We can walk with you through this gain and make sure everything is covered so you can go on that shopping spree, visit Paris, or simply relax in your new bathtub with air jets. 

Reach out to our team today and protect yourself from the many common mistakes others make when they receive an inheritance. You are a strong, proud woman. We can help ensure you have the financial resources needed for a happy, hopefully, long life. 

Book a Call today and let’s discuss your options.

Lillian Meyers CFP®, CDFA®, EA is a Financial Planner for Women in Sonoma, California helping clients live their best life through the use of financial planning, investment management, and other sophisticated financial options.