My mom died, leaving me with 10 times what I expected and I was a little lost in how best to manage it

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Over the next 20 years, as the baby boomers pass on their accumulated wealth to the younger generation, Americans will inherit approximately $72 trillion, a phenomenon known as a huge transfer of wealth.

This means there will be a lot of people like you who are surprised (even if so) to inherit money, unsure how best to manage it.

This problem stems from communication around real estate planning. A 2024 Edward Jones report found that even if 48% of Americans plan to leave inheritance, more than one-third of Americans have no plans to talk to their families about their property.

You are not ready for this unexpected preparation, but are happy to think about how to manage your future funding so you don’t waste this opportunity to improve your life now and in the future.

Here are some options to explore.

If you inherit a large sum of money, one thing you can do is put it into a portfolio dedicated to retirement.

A 2024 CNBC survey found that 40% of Americans lag behind retirement plans and savings, while 21% of current retirees have no savings at all.

You don't want to rely on Social Security in retirement because if you're a regular income, these benefits only replace 40% of your salary. In addition, in the near future, social security may be reduced.

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Now, investing in your inheritance can provide you with greater retirement security and help you build an inheritance for future generations.

It is important to maintain a variety of asset portfolios in your portfolio. If you're a few years after retirement, you'll probably keep most of your portfolio in stocks and smaller bonds.

For instant diversification, consider investing in the S&P 500 Index Fund to give you access to the 500 largest publicly traded companies. For the bond portion of the portfolio, consider combining a mixture of corporate bonds, treasury and municipal bonds for tax diversification.

However, diversification outside the stock market is equally critical, especially given its recent volatility. Investing in commodities like gold can help stabilize your portfolio and ensure your retirement fund continues to grow.

Gold IRA is an option to build a retirement fund through inflation hedging assets.

With the help of industry leader Goldco, opening the Gold IRA allows you to invest in gold and other precious metals in physical form, while also providing the IRA’s important tax advantages.

Goldco offers free shipping and access to the retirement library. Additionally, the company will match 10% of the eligible purchases for free silver purchases.

If you're curious if this is the right investment to diversify your portfolio, you can download a free guide to gold and silver information right away.

Another way to diversify is to invest in real estate. New investment platforms are easier to enter this market than ever before.

For accredited investors, Homeshares has access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground for institutional investors.

With a minimum investment of $25,000, investors can directly access homes occupied by hundreds of owners in top U.S. cities through their U.S. housing stock funds without the mind of buying, owning or managing property.

With risk-adjusted internal rate of return ranging from 14% to 17%, this approach provides an effective, accessible way to invest in the owners of regional markets to occupy residential properties.

If you are not an accredited investor, crowdfunding platforms like Arrival can get you into the real estate market for $100.

Arrivals provide you with stocks that earn SEC qualification investments in rental homes and vacation rentals, and curates and reviews their appreciation and revenue potential.

Supported by world-class investors like Jeff Bezos, it’s easy to fit these properties into your portfolio regardless of your income level. Their flexible investment amount and simplified process enable both accredited and unaccredited investors to take advantage of this inflationary asset class without any additional work from you.

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There is nothing wrong with using inherited benefits to improve your life and family benefits now. So consider your most pressing needs.

If you live in a narrow dormitory, you can use some money to complete the basement of the house for additional living space. Or you can buy a bigger home.

You can also invest in your child’s education. A December 2023 Discover survey found that 70% of parents are worried that there is not enough funds to pay for their children’s education.

You can incorporate some inheritance rights into 529 plans to achieve a child’s college education, thus making it tax-free.

It is best to consult a professional whenever your financial situation changes substantially. Financial advisors can guide you some of the best ways to invest in your inheritance to achieve your goals and advise on tax and legal implications.

For example, income from certain assets may cause you to get stuck at higher tax rates. An inherited IRA may be subject to a 10-year rule, which means you must withdraw all funds within 10 years of the death of the original account owner.

You can find more information on unique rules and opportunities for new financial situations on Advisor.com.

This online platform connects you with a review financial advisor best suited to help you develop your new wealth plan.

Just answer some quick questions about you and your financial situation and the platform will match experienced finance professionals. You can view their profile, read past customer reviews, and schedule initial consultations for free without hiring obligations.

With such guidance, your surprise inheritance may surprise you in all the ways you reproduce in your life.

This article provides information only and should not be construed as advice. It is without any warranty of any kind.