Did you receive an inheritance or a life insurance benefit? Maybe you sold your house and are looking to rent for the foreseeable future? Figuring out what to do with a large sum of money can be challenging when it’s time to choose the best investment. It’s important to give it some thought.
Take your time
First tip, take your time. Receiving a windfall often goes hand in hand with significant upheavals, so making a hasty decision is not recommended. Take the time to assess your situation and your needs. Here are a few questions you should ask yourself:
- What is my risk tolerance?
- Do I need easy access to the funds?
- What are my financial obligations?
To make the right choice, it might be good to take the time to compare the options offered at various financial institutions:
- Is there a minimum amount I am required to invest?
- What is the return?
- How much are the management fees?
- What are the risks and/or guarantees?
- How often am I able to make withdrawals?
- How much are the withdrawal fees?
While it might not be the first option that comes to mind, dealing with an insurance company like iA Financial Group has a number of advantages:
- Possibility of protection against creditors, a key advantage for those who are self-employed
- Beneficiary designation
- Quick claim at death
The money you invest becomes a secure option for part of your inheritance.
Depending on your answers to these questions, you might think about investing in a high-interest savings account, where the money lying dormant in your bank account can grow securely. There are also several advantages for you to enjoy, including better-than-market rates, no minimum investment, no withdrawal fees or management fees. And you can make withdrawals at any time.
For self-employed workers, having your investment protected from creditors in the event of a lawsuit can be very reassuring.
To guide you
A financial security advisor can help you think about your needs, your investor profile and your risk tolerance. Don’t have an advisor? Find an advisor near you today!