How can I invest an inheritance to get an income?

How to Invest an Inheritance

1. Good Growth Stock Mutual Funds. Invest in good growth stock mutual funds through an individual or joint taxable brokerage account.
2. Real Estate Bought With Cash. Depending on the size of your inheritance, you may be able to purchase a rental property outright.

Where should I invest my inherited money?

With the ground work laid, then you can finally look at where exactly to invest your money. The answer will depend on how much you inherited and how much you ultimately think you need. If you are looking for a single place to park your inheritance over the long term, look for a low-cost index fund that offers broad, inexpensive exposure.

What should you do if you receive large inheritance?

Young adults who receive large inheritances should hire a financial advisor first thing. If your parents had one, they are usually a better option because they already understand the situation. You may even know them personally. The absolute worst thing someone can do is to go out and spend money lavishly.

How much money would you have if you invested $200k?

That really depends on how you invest your money and the average return you get. If you found a way to invest $200,000 and could leave it to earn a 6\% return for 20 years, you’d have $641,427.09 after two decades of growth. If you can manage to get a 10\% return, on the other hand, you’d end the next two decades with $1,345,499.99. 1.

How can I invest hundreds of thousands of dollars?

Still, the real problem is figuring out how to invest hundreds of thousands of dollars. As a financial advisor, I suggest spreading out a $200,000 investment into several different buckets. That way, you can diversify your $200,000 investment and increase exposure within different areas of finance that have the potential to grow.