There’s a very common movie cliché: a relative you never knew you had, or you never knew was super wealthy, wills you a gigantic inheritance. Inheritances like that are rare, no doubt, but it’s a good idea to be prepared if you find yourself left with a large inheritance. Investing is probably the wisest option, but you need to be careful about how you do that. Here are seven great ways to invest your inheritance money, taken from an article on the site wealthygorilla:
The stock market: Perhaps one of the most common ways to invest money, this is a great way for somebody who understands business trends to make a good profit. The trick is to buy low and sell high. However, it’s risky, so only do it once you have a good understanding of how the stock market works.
The Foreign Exchange market: The main idea behind the Foreign Exchange market is to pit one currency against another. By studying currency exchange rates and then investing in the right direction, you can make a killing. News, particularly world economic news, plays a large part in this market, so stay up to date!
Binary options: 00101100100 01100001 01101101 00100000! But in all seriousness, the binary market is kind of like the Foreign Exchange market, except you’re simply picking the direction the market will move. Yet once you’ve entered this market, you won’t be able to get out for the duration of the trade if it turns against you. That’s why you need to really study the charts to make a good prediction.
Yourself: If there are some courses or certifications you weren’t able to get before, then this is a pretty good way to go, since it will lead to a better-paying job down the line. It doesn’t even have to be college courses; you can also buy books to expand your mind or get better clothes to make a good impression.
Retirement: The key to an effective retirement plan is to be honest with yourself about the kind of lifestyle you plan on having during your retirement, and then determining what that would cost. While investing your inheritance in your retirement might not seem exciting, it will make your final years that much more enjoyable.
Collectibles: Collectibles, in particular collectible toys, increase in value over time as they become rarer. Many hard-to-find toys are worth money decades later, and if you’ve got the patience for that, then it’s a pretty lucrative long-term investment.
Fine art: Fine art could be a great investment. You might not have the millions to purchase a Rembrandt, but there are plenty of not-so-well-known painters who fetch pretty good returns on their work. However, it’s a good idea to seek the advice of experts before buying something that could ultimately turn out to be worthless.