March 4, 2016
Inheriting Money Wisely – What to do with IRAs, 401(k)s and Similar Plans

Inheriting Money Wisely – What to do with IRAs, 401(k)s and Similar Plans

Inheriting Money Wisely – What to do with IRAs, 401(k)s and Similar Plans We have begun an enormous transfer of wealth between generations, and chances are pretty good it will affect you. According to researchers at Boston College’s Center for Retirement Research, people now in their 50s and 60s—the Baby Boomers—will inherit $8.4 trillion from their parents’ generation—World War II’s Greatest Generation. Really, the process has just begun; as of not too long ago, just over a quarter of the transfer had taken place, meaning more than $6 trillion of this transfer is yet to come. So how does that affect you? If you are a Baby Boomer, there’s a two out of three chance you are (or will be) part of this transfer (the median inheritance is $64,000). In fact, the wealth has begun to make its way down to Generation X, the post-Baby Boom generation of people now in their 30s and 40s. If you are lucky enough to receive a sizable inheritance, make sure you handle it wisely. We’ve all read the stories of people who blew through large inheritances or multimillion-dollar lottery winnings and ended up with nothing to show for it. Let’s make sure that’s […]