Everyone Says Pay Off the Mortgage with an Inheritance. But What Should You Really Do?
Financial AutonomyShow Notes
Everyone says that when you receive an inheritance, the smartest thing to do is pay off the mortgage. And sure, for some people, that might be exactly the right move.
But what if it isn't the whole answer?
Receiving an inheritance can be one of the most emotional financial moments of your life. There's grief, gratitude, guilt, pressure, and suddenly a long list of decisions you may not feel ready to make. Should you pay down debt? Invest? help your kids? keep some aside? take the trip your loved one always wanted you to take?
In this episode of the Wealth Builder Podcast, Nick Donato is joined by Paul Benson to unpack what to think about before making any big moves with inherited money. They talk through why pausing can be powerful, what tax and timing issues can catch people out, and how to make decisions that honour the legacy you've been left while still supporting the life you want to build.
In this episode:
How to avoid rushing into a decision while emotions are high
Why paying off the mortgage may feel obvious, but still needs to be tested
What to understand before mentally spending an inheritance
The tax and timing issues that can change what you actually receive
How to weigh up debt, investing, kids, travel, renovations and future goals
Why your own estate planning may need a review after receiving an inheritance
How to use inherited money thoughtfully, without guilt or regret
If you've received an inheritance, expect to receive one, or simply want to understand how to make better decisions around a major financial windfall, this episode will help you slow down, think clearly, and make a plan before the money starts making decisions for you. WANT PERSONALISED ADVICE FOR YOUR INHERITANCE?: Book an appointment with Guidance Financial Services here. READY TO SORT YOUR FINANCES AND BUILD WEALTH WITH A CLEAR PLAN?: Wealth Builder is our specialised 12-month financial advice program for people in their 30s and 40s. You can learn more about it here. FOLLOW NICK ON LINKEDIN HERE. WANT TO STAY ACROSS WHAT'S MOVING THE MARKETS?: Subscribe to GainingCHOICE, our weekly email unpacking the key headlines and what to pay attention to.
GOT A FINANCE QUESTION FOR PAUL?: Send it to [email protected], and it could be featured in his Ask an Expert column each Sunday in The Age and Sydney Morning Herald.
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UPDATED: This episode was originally published with the wrong episode audio; it has been republished with the correct audio. Thanks for your patience!
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