Inheriting Wealth

The Two Sides of Inheriting Wealth



Posted on: 24th December 2023

When we talk with clients who suddenly inherit wealth, it is no surprise that they view it as a bit of a checkmate. Naturally, inheriting wealth from a loved one comes with a fair amount of emotional blow, but it can also be both a blessing to your family – and a challenge to deal with.

Inheriting wealth provides an avenue for your financial security to be improved and put on a path to accomplish any financial goals you have. However, there comes a sense of responsibility in ensuring those funds get managed wisely. Whether you choose to achieve your own goals or protect it for the generation beneath you, inherited wealth comes with plenty of baggage.

At Haven IFA, our team of independent financial advisers Cheshire helps our clients navigate through complex options faced with inheriting wealth. Based on your goal aspirations and attitude towards investment risk, we help identify the best options to make that money work for you, with a strategy aligned and supportive of your life goals.

Cash-Flow Modelling

It is useful to create and analyse a cash-flow model to help you make informed decisions about how an inheritance would be best utilised. By making assumptions for future investment returns, inflation and interest rates, our independent financial advisers Manchester can help create a comprehensive picture of your current and future financial situation.

A cash-flow model could help to identify and prioritise both short and long-term financial goals. A clearer understanding of your financial standing can aid in making more strict decisions on investing, saving and spending on your inheritance so that it meets your goals.

Cash-flow planning also allows for more assessing and managing of risks associated with investments and other financial decisions, understanding your tax liabilities and enabling you to plan accordingly and limit any impact on your financial standing. It also helps with your retirement planning Cheshire, showing how much you need to save and what returns you need to achieve.

Analyse, Identify and Evaluate

Our team can help analyse your current circumstances, goals and needs by gathering all information on assets and liabilities. With an overview established, you can attain a clear understanding of your net worth now and allow assessment of whether you are on the right track to independence.

Your IFA can then help you to determine both short and long-term goals and the financial needs associated with them – such as saving for a house, funding education or retirement planning. If your inheritance has come late in life, it could be considering grandchildren help in moving up the property ladder or supporting causes.

Finally, you look at whether your investment strategy aligns with your risk tolerance and financial goals. To do this, we look at your existing portfolio and recommend any changes if required to optimise for your needs.

If you have recently inherited wealth and are unsure what it means for you financially, our dedicated team of financial advisers are here to help, Contact Haven IFA today for structured, personal wealth management that safeguards your family.

Posted in IHT