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Financial management

What to do with your inheritance

It's common to receive an inheritance but less common to make a long-term plan for your newly acquired assets. Find out where to start.
4 minute read
  •  
June 21, 2023
Financial management
Inheriting money
Article
Page
Advice
Estate planning

70% of wealthy families lose their wealth by the next generation. And 90% lose it the generation after that.*

It's no wonder that inheriting someone's legacy can feel like a big responsibility. The process involves transferring someone else's account to your own name, completing the right paperwork, and deciding what to do with those inherited assets. But when you partner with Vanguard, you don't have to shoulder it alone. We'll help provide financial guidance that can both continue their legacy and suit your needs.

Wondering how we can help? Below is a list of the many—but not all—ways we can help you when receiving an inheritance:

  • Integrate your newly inherited assets, such as savings and retirement accounts, with your current funds.
  • Adjust your portfolio for your current goals and needs while still honoring the legacy you inherited.
  • Help plan and build your own legacy.
  • Form a financial plan and income stream to make your money last in accordance with your retirement goals.
  • Plan withdrawal strategies when the time comes to take required minimum distributions (RMDs) from inherited IRAs.

At Vanguard, you're more than an investor—you're an owner. Other investment firms must answer to a board. But our funds are owned by our investors. That means, as a Vanguard client, your interests are our interests. We don't have to try to align your inheritance with your goals—we do it by design.

That's true no matter which product you choose. Whether you'd like to connect with an advisor one-on-one, prefer state-of-the-art automated advice, or want a little bit of both, we can help you navigate the complexities and questions that can come with inheriting assets.

Hear from one of our valued clients about his experience with Vanguard Personal Advisor Select™:

Transcript

[MUSIC PLAYING]

I'll be 66 next month. My first investment was a 401(k). My father just passed away. He was a big investor. And so I'm going to be getting an inheritance with his stocks. I've tried picking stocks. I'm really kind of more of a hands-off investor. I like the advice offering. I went to your website. There was a place that was like create an account. And you put your name in, and then they contacted you. And then I talked to a guy. He was a pretty fun guy.

You know, I really liked his no nonsense approach. He was like, OK so this is. This is what the fees are. This is what we're expecting. I thought it was really straightforward. I thought the whole presentation was just nicely done. It was a really good customer experience for me because it's super hard decision, right? Because you have to make that money grow for you at least not fall backwards.

So when I'm trying to retire here, then I don't have any money, I’d have to keeping working until I'm 95. It was good to feel comfortable with this person so that I could get my questions answered. And the guy that I was talking to goes, I'm going to put this on my calendar. And I'm going to call you on March 18. And we're going to get this money over, and then I want to be your financial advisor. And I was like, wow, that really kind of blew me away.

It was like wow, OK, I picked the right company. I've heard other people talk about it and always in the positive, so. Just give it to Vanguard, and we'll go from there.

This story is from an advisory client of Vanguard who was not compensated for the statement. This experience may not be representative of all client experiences. 

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