MONEY MATTERS
34 | SHARES | 01 August 2019
Helping you with personal finance issuesWe consider the different ways to get the most from a lump sum of moneyHow to invest
an inheritance
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ĞƫŶŐĂŶƵŶĞdžƉĞĐƚĞĚ
ŝŶŚĞƌŝƚĂŶĐĞĐĂŶƉƌŽǀŝĚĞ
ĂǀĂůƵĂďůĞƐƚƚŽLJŽƵƌ
ĮŶĂŶĐĞƐʹďƵƚŚŽǁĚŽLJŽƵǁŽƌŬ
ŽƵƚǁŚĂƚƚŽĚŽǁŝƚŚƚŚĞǁŝŶĚĨĂůů͍
dŚĞĂǀĞƌĂŐĞŝŶŚĞƌŝƚĂŶĐĞ
ƌĞĐĞŝǀĞĚŝƐĂƌŽƵŶĚάϭϭ͕ϬϬϬ͕
ĂĐĐŽƌĚŝŶŐƚŽĮŐƵƌĞƐĨƌŽŵƚŚĞ
KĸĐĞĨŽƌEĂƟŽŶĂů^ƚĂƟƐƟĐƐ͕
ďƵƚƐŽŵĞƉĞŽƉůĞŐĞƚůĂƌŐĞƌ͕
ƉŽƚĞŶƟĂůůLJůŝĨĞͲĐŚĂŶŐŝŶŐƐƵŵƐ͘
KŌĞŶƚŚŝƐŝƐŵŽŶĞLJƚŚĂƚƉĞŽƉůĞ
ŚĂǀĞŶ͛ƚƉůĂŶŶĞĚŽŶƌĞĐĞŝǀŝŶŐ͕
ƐŽŝƚĐĂŶďĞƚĞŵƉƟŶŐƚŽƐƉůƵƌŐĞ
ŝƚ͕ďƵƚǁŚĂƚ͛ƐƚŚĞďĞƐƚĐŽƵƌƐĞ
ŽĨĂĐƟŽŶ͍TO SPLURGE OR SAVE?
dŚĞĮƌƐƚƚŚŝŶŐƉĞŽƉůĞƚŚŝŶŬŽĨ
ǁŚĞŶƚŚĞLJƉŝĐƚƵƌĞĂůŽƩĞƌLJǁŝŶŝƐ
ƵƐƵĂůůLJƐƉůƵƌŐŝŶŐŽŶĂŚŽůŝĚĂLJ͕Ă
ŶĞǁŚŽƵƐĞŽƌƐŽŵĞƚŚŝŶŐĨƵŶĨŽƌ
ƚŚĞĨĂŵŝůLJ͘tŚŝůĞĂŶŝŶŚĞƌŝƚĂŶĐĞ
ŝƐƵŶůŝŬĞůLJƚŽďĞĂƐůĂƌŐĞĂƐĂ
ůŽƩĞƌLJǁŝŶ͕ŝƚĐĂŶďĞƚĞŵƉƟŶŐ
ƚŽƐĞĞŝƚĂƐďŽŶƵƐŵŽŶĞLJĂŶĚ
ƐƉĞŶĚŝƚ͘
dŚĞƌĞ͛ƐŶŽƚŚŝŶŐǁƌŽŶŐǁŝƚŚ
ƚƌĞĂƟŶŐLJŽƵƌƐĞůĨǁŝƚŚƐŽŵĞŽĨƚŚĞĐĂƐŚ͘zŽƵĐŽƵůĚĂůůŽǁ
LJŽƵƌƐĞůĨƚŽƐƉĞŶĚĂƉƌŽƉŽƌƟŽŶ
ŽĨŝƚŽŶƐŽŵĞƚŚŝŶŐĨƌŝǀŽůŽƵƐŽƌ
ďƵLJƐŽŵĞƚŚŝŶŐLJŽƵ͛ǀĞǁĂŶƚĞĚ
ĨŽƌĂŐĞƐ͘dĂŬŝŶŐŽƵƚϭϬйƚŽƚƌĞĂƚ
LJŽƵƌƐĞůĨŽƌƚŚĞĨĂŵŝůLJĐŽƵůĚǁŽƌŬ
ǁĞůů͕ĂŶĚďLJƌŝŶŐͲĨĞŶĐŝŶŐƚŚŝƐĂƐ
͚ĨƵŶŵŽŶĞLJ͛LJŽƵ͛ƌĞůĞƐƐůŝŬĞůLJƚŽ
ŐƌĂĚƵĂůůLJƐƉĞŶĚĂďŝŐƉŽƌƟŽŶŽĨ
ƚŚĞŝŶŚĞƌŝƚĂŶĐĞ͘DEAL WITH THE
BORING STUFF
ĞĨŽƌĞLJŽƵƚŚŝŶŬĂďŽƵƚŝŶǀĞƐƟŶŐ
ŽƌƐĂǀŝŶŐĂŶLJŽĨƚŚĞŵŽŶĞLJŝƚ͛Ɛ
ǁŽƌƚŚƉĂLJŝŶŐŽīĂŶLJŚŝŐŚͲĐŽƐƚ
ĚĞďƚ͘>ŽƚƐŽĨƉĞŽƉůĞĚƌĞĂŵŽĨ
ƉĂLJŝŶŐŽīƚŚĞŝƌŵŽƌƚŐĂŐĞǁŝƚŚ
ĂǁŝŶĚĨĂůů͕ĂŶĚƚŚĂƚĐŽƵůĚďĞĂ
ŐŽŽĚƵƐĞĨŽƌƚŚĞŵŽŶĞLJ͕ďƵƚLJŽƵ
ŶĞĞĚƚŽŵĂŬĞƐƵƌĞLJŽƵƉĂLJŽī
ƉƌŝĐŝĞƌĚĞďƚĮƌƐƚ͘
ŚĞĐŬǁŚĂƚŝŶƚĞƌĞƐƚƌĂƚĞLJŽƵ͛ƌĞ
ƉĂLJŝŶŐŽŶLJŽƵƌŵŽƌƚŐĂŐĞĂŶĚ
ƚŚĞŶůŽŽŬĂƚĂŶLJŽƚŚĞƌĚĞďƚLJŽƵ
ŚĂǀĞĂŶĚǁŚĞƚŚĞƌŝƚ͛ƐĐŽƐƟŶŐLJŽƵ
ŵŽƌĞ͘dŚŝŶŬĂďŽƵƚĐƌĞĚŝƚĐĂƌĚƐ͕
ŽǀĞƌĚƌĂŌƐ͕ƉĞƌƐŽŶĂůůŽĂŶƐŽƌ
ƐƚŽƌĞĐĂƌĚƐLJŽƵŵŝŐŚƚŚĂǀĞĂŶĚůŽŽŬƚŽƉĂLJƚŚŽƐĞŽīďĞĨŽƌĞLJŽƵ
ƚĂĐŬůĞƚŚĞŵŽƌƚŐĂŐĞ͘
dŚĞŶĞdžƚƐƚĞƉŝƐƚŽĐŚĞĐŬ
ƚŚĂƚLJŽƵƌĞŵĞƌŐĞŶĐLJĐĂƐŚŝƐ
ƐƵĸĐŝĞŶƚůLJƚŽƉƉĞĚƵƉ͘hƐƵĂůůLJ
ŝƚ͛ƐŐŽŽĚƚŽŚĂǀĞďĞƚǁĞĞŶ
ƚŚƌĞĞĂŶĚƐŝdžŵŽŶƚŚƐŽĨLJŽƵƌ
ŽƵƚŐŽŝŶŐƐ set aside in easily-
accessible cash ͘INVEST FOR THE FUTURE
/ĨLJŽƵĂƌĞĂůƌĞĂĚLJĚĞďƚͲĨƌĞĞĂŶĚ
ŚĂǀĞĞŶŽƵŐŚĐĂƐŚŝŶƌĞƐĞƌǀĞ͕
ĂŶĚLJŽƵƚŚŝŶŬLJŽƵĐĂŶĞĂƌŶ
ŵŽƌĞďLJŝŶǀĞƐƟŶŐƚŚĞŵŽŶĞLJ
ƚŚĂŶďLJƉĂLJŝŶŐŽīƚŚĞŵŽƌƚŐĂŐĞ͕
ƚŚĞŶLJŽƵĐŽƵůĚůŽŽŬƚŽƐĂǀĞƚŚĞ
ŵŽŶĞLJĨŽƌƚŚĞĨƵƚƵƌĞ͘
DĂŬĞƐƵƌĞLJŽƵŚĂǀĞĂƐĂǀŝŶŐ
ŐŽĂůďĞĨŽƌĞLJŽƵĚĞĐŝĚĞǁŚĞƌĞ
ƚŽŝŶǀĞƐƚŝƚ͕ĂƐƚŚŝƐǁŝůůŚĞůƉ
ĚĞƚĞƌŵŝŶĞǁŚĂƚLJŽƵŝŶǀĞƐƚŝŶ
ĂŶĚŚŽǁŵƵĐŚƌŝƐŬLJŽƵ͛ƌĞǁŝůůŝŶŐ
ƚŽƚĂŬĞ͘
/ĨLJŽƵ͛ǀĞƌĞĐĞŝǀĞĚƚŚĞǁŝŶĚĨĂůů
ǁŚĞŶLJŽƵ͛ƌĞLJŽƵŶŐĞƌŐĞƫŶŐ
ŽŶƚŚĞƉƌŽƉĞƌƚLJůĂĚĚĞƌŵŝŐŚƚ
ďĞLJŽƵƌƚĂƌŐĞƚ͘dŚĞĂǀĞƌĂŐĞ
ĮƌƐƚͲƟŵĞďƵLJĞƌĚĞƉŽƐŝƚŝƐŶŽǁ