Should You Hire a Financial Advisor After Receiving an Inheritance?
Over the next decade, between $84 trillion and $124 trillion is expected to be passed down to the next generation in what’s being called “The Great Wealth Transfer.” If you’re among the 15% of American adults who expect to receive an inheritance, you may find yourself navigating both emotional grief and financial uncertainty. While an inheritance can provide a significant financial boost, it can also feel overwhelming, especially if you’re unsure how to manage it. In fact, 58% of Americans say they don’t feel financially confident handling new wealth.
This is where a financial advisor can be a vital resource. They can help you create a clear, informed plan during a time that might otherwise feel emotionally and financially chaotic.
Guidance Through Grief
Inheritances are often the result of losing a loved one. During such a sensitive time, making big financial decisions can be difficult. At Wiser Wealth, we often advise clients experiencing loss, whether through death, divorce, or other major life events, to avoid making any substantial decisions during the first year.
Grief can cloud judgment and lead to impulsive choices. A financial advisor serves as a neutral guide who can help you process both the emotional and financial aspects of your new circumstances. Instead of treating your inheritance as separate from your existing finances, an advisor will help you integrate it into your overall financial plan. This ensures that your decisions align with your long-term goals rather than your immediate emotions.
Planning for Your Financial Future
Advisors often joke that they wear many hats: financial planner, life coach, and sometimes even therapist. That’s because a good advisor does more than manage money. They walk through life with you.
After receiving an inheritance, your advisor can help you:
- Set short- and long-term financial goals
- Manage or pay off debt
- Create or update your investment strategy
- Plan for retirement
- Navigate tax planning
- Establish or revise an estate plan
Whether or not you’ve come into a windfall, these are key components of financial success. Having expert support can help you feel empowered and confident.
Expertise on Inherited Assets
Inherited assets often come with specific rules and tax implications. A financial advisor can help you understand and navigate them. For example, suppose you inherit an IRA as a non-spouse beneficiary after 2019. In that case, you’ll be subject to the 10-Year Rule, which means the account must be fully distributed within 10 years of the original owner’s death or you may face penalties.
An advisor can work with you to develop a tax-efficient withdrawal strategy tailored to your unique situation and goals.
When to Consider Hiring a Financial Advisor
Some people avoid hiring an advisor because they believe advisors are only for the wealthy. That couldn’t be further from the truth. Advisors work with people across the financial spectrum, from those navigating debt to those managing multi-generational wealth.
You may benefit from working with an advisor if:
- You’ve received a substantial inheritance
- Your inheritance includes complex assets
- You lack time or confidence to manage finances yourself
- You’re experiencing a major life change
A trusted advisor provides clarity and guidance when you need it most.
What to Look for in a Financial Advisor
If you’re ready to find a financial advisor, make sure they meet these key criteria:
- Fiduciary: They are legally required to act in your best interest.
- Fee-only: They charge a flat fee, hourly rate, or a percentage of assets, rather than commissions or product-based incentives. Avoid fee-based advisors who may have conflicts of interest.
Take the Next Step
Finding a fiduciary, fee-only advisor is a powerful step toward protecting your inheritance and achieving long-term financial security. At Wiser Wealth Management, we are fiduciary, fee-only advisors committed to acting in your best interest. If you’ve recently received an inheritance or expect to, and want to create a thoughtful plan for the future, we’re here to help. Schedule your complimentary consultation today to preserve your legacy and gain peace of mind.
Michaela Dowdy
Financial Advisor, Wiser Wealth Management
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