There is nothing quite as painful as a loved one passing away, and if it happens, you might be in a position where you will be receiving some inheritance money. This is a token of the person’s appreciation for you in life, and it often represents a lifetime of their savings and hard work.

When you go through receiving a large sum of money, it’s always tempting to splurge it on all the things you wish you could have bought for years. Splashing out on a lifetime holiday or buying yourself a house outright is often tempting, and often this is what people do when they inherit some money. It’s always OK to spend a portion of inheritance that way, but you do need to consider how you could be using the money so that you can set yourself up for life.

Finding the best dApps, investing in the stock market or even getting financial advice can feel overwhelming. However, with the right guidance, you’ll be able to invest your inheritance in a way that is intelligent and gives you a good return. With that in mind, we’ve put together a list of ways that you can invest your inheritance for the better.

  1. Contributing to an IRA. Most people wish they could contribute to an individual retirement account each year, but often the daily bills can get in the way. When you have an inheritance, you have an opportunity to pour some money into it, but you need to check with your individual IRA account because there may be a maximum contribution that you are allowed to put in. You could also contribute to a spouse’s IRA even if they’re not working, which means that when it gets to retirement time, you both have a pool of money to be able to draw from.
  2. Max out that company retirement plan. 401K or 403B accounts often give you the chance to save money for retirement from your paycheck. Some companies offer to match these contributions to encourage people to participate. While many plans won’t allow you to just write a check to contribute to a company retirement account, you could also increase your paycheck withholding amount to Max out the account completely. Then you can tap into your inheritance for the difference so that you can cover those normal monthly bills.
  3. Upgrade your health insurance Instead of adding to a savings account for your health, upgrading your health insurance for the top tier cover is a great idea. You can pay out a year’s worth of health insurance in one go so that you don’t have to worry about making monthly repayments.
  4. Invest in a rental property. Rental property investments are one of the most popular ways that you could invest in real estate. You can gain a monthly income from tenants that cover the mortgage, and eventually you end up with an asset that you can sell. Not everybody wants to be a landlord, however, and if that’s the case, you can always look at other ways that you could invest.