Spending Your Inheritance

Read More

Receiving an inheritance is a time of mixed emotions. There is the anticipation of receiving a sum of money, possibly a very large sum, but also the sadness of the loss of a loved one. Sometimes this tangling of emotions can lead to decisions being made which are not the best from a strictly financial point of view.

There is a group of people for whom inherited money is sacrosanct. Such people will talk about how their family member – usually a parent or a grandparent – worked hard and saved hard to build up their wealth and it therefore needs to be invested conservatively and preserved in their honour. In some cases, such people set an intention not to use this money themselves but to pass it on to their children, just as it was passed on to them.

There is another group of people who sit at the opposite end of the spectrum. These people have often inherited money unexpectedly as a result of the premature death of someone close. For these people, the shock of losing someone at a young age is a reinforcement of the need to live life to the full while you can. Their view is that you can’t take money with you so you might as well spend it sooner rather than later.

In between these two extremes is another group, probably the largest of all three, who take a balanced view. For these people, inherited money is to be invested wisely, with most being spent over the course of the retirement phase and perhaps a portion being passed on to the next generation.

Attitudes towards money are different for everybody. The key issues to consider are who is going to spend the money (because someone will) and when it is going to be spent.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.