5 Ideas for Investing Your Inheritance

Deciding what to do with an inheritance can be challenging. While it is almost always advisable to allocate a portion of that money to one or more strategic investments, different people will need to take different approaches based on their individual goals and risk appetites. However, thanks to increased access to information, and smart alternative investment platforms like Yieldstreet, finding the right decision to suit your needs is easier than ever.

To help get you started, here are 5 ideas for investing your inheritance:

Real Estate - Real estate investing has remained popular among successful investors for decades. Beyond the historically positive returns, the wide variety of strategies available makes it an attractive choice for investors of all risk aptitudes and experience levels. Whether you want to do the hard work of real estate development or house-flipping, or generate income passively by investing in rental properties with a platform like Arrived Homes, real estate might be the perfect place to start putting your inheritance to work.

Peer-to-Peer (P2P) Loans - P2P lending is an increasingly celebrated and prevalent investment strategy today. Individuals looking for a personal loan or credit line can now borrow directly from investors via a growing number of online platforms such as Upstart, eliminating the need to engage with traditional financial institutions. On most platforms, it's as simple as setting up an account, funding the loan of your choice, and collecting passive income in the form of scheduled monthly payments.

Stocks - While the stock market can be prone to periods of volatility, a diversified portfolio containing shares of multiple successful companies will often perform well as a long-term investment vehicle. Moreover, many of the technical barriers to entry have been removed thanks to platforms like Robinhood or WeBull, which make it easy for investors of all experience levels to sign up for an account and get started in a matter of minutes. 

Retirement Plans - Because many have already begun saving for retirement, it is not uncommon for portions of an inheritance to be immediately invested in an existing plan. Retirement accounts such as a 401(k) are designed to incentivize increased contributions, so allocating some of your inheritance will only build on the benefits you already receive, such as a reduced tax burden, or the confidence that you'll be able to cover the health care expenses that can come with getting older. 

Alternative Assets - Until recently, non-accredited investors have been locked out of the private markets, while those with exclusive access have been quietly earning exorbitant returns. Fortunately, all of this is changing, and platforms like Yieldstreet allow anyone to invest like the top 1%, whether in assets like fine art, real estate, or commercial finance, and all while relying on the strategies of a team of experienced professionals. Moreover, Yieldstreet's offerings feature a wide range of minimum capital requirements, allowing investors to earn on an instantly diversified portfolio for as little as $500. 

Source: Yieldstreet

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Categories: Investments

Tags: Alternative Investments, Inheritance, P2P, Real Estate, Retirement Plans, Stocks, Yieldstreet