Develop an Investment Strategy
When you receive your inheritance, develop a thoughtful financial strategy to use the inheritance to help achieve whatever goals are important to you. Consider the following to help you develop an investment strategy. If you take the time to answer these questions, you’re more likely to make financial decisions that meet your needs.

What are your financial goals? Have a clear picture in mind of the goal(s) your inheritance may help you accomplish. For example, if your goal is to grow a nest egg for your retirement 20 years from now, you will likely choose a different strategy than if you are investing to send a child to college in 10 years. Different goals may require different investments.

How much risk can you tolerate? As with any investment, consider the amount of risk you’re willing to take, and determine the relative risk of each investment you consider.

For what length of time can you invest your money? One factor in the type of investments you choose is how long you plan to invest your money. For example, in saving for a child's education, one person may need to have funds available to pay tuition in the next two to three years, while another person may not need the money for 15-18 years. Chances are these people will select different investments that coincide with their investment time horizon—or the amount of time they have until they need the money. While there is no guarantee that your investment will perform as intended, it is important to select investments according to your investment time horizon.

If you have trouble answering these questions or developing an investment strategy, it may be wise to consult a qualified financial advisor.