Personal Finance

I just inherited a little over $100k and at 44 years old, I have zero saved up and nervous that I will mismanage this opportunity

Joey Frenette

Published: January 16, 2025 7:33 am

Inheriting a great deal of cash, is something to be celebrated as your degree of financial freedom and buying power go up in what seems like an instant. But as Uncle Ben from the comic Spiderman once said, “With great power comes great responsibility.” And it’s up to the heir to take the steps to become financially literate enough so that they can best manage the financial windfall that’s come their way. Indeed, it can be tricky for someone who hasn’t really had all that much experience saving and investing money to fall onto a six-figure sum suddenly. 

In this Reddit post, an individual, 44, saw their net worth swell from around zero to just north of $100,000. They know they’re not the most financially savvy person in the world. And this makes them quite nervous about messing things up with the newfound fortune they just received.

Indeed, it’s not all too uncommon for some heirs to blow their fortunes, given they lack the financial literacy not only to grow the wealth they receive but also to ensure it lasts a long time. Though it’s tempting to blow the money, you didn’t have to work for on sensational splurges; I do think that it’s a better idea to begin learning about how to best manage funds, if not for the betterment of one’s own financial future to honor the person whose fortune they’re receiving.

Getting on the right track to responsibly managing an inheritance is key.

I’d say the Reddit poster is on the right track to making the financially responsible decision. The fact that they’re anxious about mismanagement tells me that they want to learn the ropes about how to be responsible with their newfound fortune. With around 15-20 years before their expected retirement date, it’d be a smart move to invest a big chunk of their inheritance (what remains after they’ve stashed a portion in emergency savings). A cheap, run-of-the-mill S&P 500 or total market index ETF (exchange-traded fund), I think, is a great place to start. 

Additionally, a financial advisor could prove invaluable in such a situation if they have your best interests in mind and can effectively communicate to a financial market newcomer the dynamics and inner workings of investments, savings, budgeting, retirement planning, taxation, and all the sort. Indeed, the $100,000 inheritance can go a long way for the individual who’s likely spent most of their life with zero in the bank.

In the meantime, however, taking advantage of resources (books, articles, and videos) could serve as a great first step that won’t cost the person anything. Of course, taking to Reddit may yield mixed results. Either way, more food for thought is never a bad thing, especially for someone who’s a beginner in managing money.

The bottom line

For people in a similar situation as this Reddit poster (I imagine there are many, given the so-called “great generational wealth transfer” is upon us), I’d note that wanting to do the right thing with one’s inheritance is key. The ropes can be learned afterward, but the sheer commitment or desire to manage funds responsibly, I believe, puts one well ahead of the game.

At the end of the day, financial literacy can be developed at any age. It really isn’t as hard as some make it out to be! So, if you suddenly fall into a financial fortune, there is no better time to make up for lost time by seizing the opportunity to ensure your money goes a long way. Indeed, by committing to being a lifelong learner, one can set oneself up on the right track, even if one has lived most of one’s life with less expertise or thought on all things financial.