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Inheritance Essay

The document discusses investment options for an inheritance of $100,000-$200,000. It recommends first assessing your financial situation and goals. It then suggests contributing to a Registered Retirement Savings Plan (RRSP) for tax benefits and investment exposure. Additionally, investing in a Tax-Free Savings Account (TFSA) offers tax-free growth and withdrawals. A final option is a Registered Education Savings Plan (RESP) to save for a child's education. Overall, the document advocates diversifying investments across these accounts in publicly traded securities, while noting risks and the importance of consulting an advisor.

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Sanm Sidhu
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271 views2 pages

Inheritance Essay

The document discusses investment options for an inheritance of $100,000-$200,000. It recommends first assessing your financial situation and goals. It then suggests contributing to a Registered Retirement Savings Plan (RRSP) for tax benefits and investment exposure. Additionally, investing in a Tax-Free Savings Account (TFSA) offers tax-free growth and withdrawals. A final option is a Registered Education Savings Plan (RESP) to save for a child's education. Overall, the document advocates diversifying investments across these accounts in publicly traded securities, while noting risks and the importance of consulting an advisor.

Uploaded by

Sanm Sidhu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Investing an inheritance can be a smart way to ensure long-term financial stability, and investing

in publicly traded securities offers a wide range of opportunities for growth. If you've recently
received an inheritance of $100 thousand - $200 thousand, here is an investment plan that
could work for you.
Firstly, it is important to assess your overall financial situation, including your current assets,
debts, and future financial goals. This will help you determine how much of your inheritance
you can allocate to investments.
One option for investing your inheritance is to contribute to your Registered Retirement Savings
Plan (RRSP). RRSPs are a tax-advantaged way to save for retirement, and contributions are
deductible from your taxable income. Depending on your income level, contributing to an RRSP
could result in significant tax savings.
Assuming that you have contribution room available, you could allocate a portion of your
inheritance to your RRSP. This would not only provide you with tax benefits but also give you
exposure to a range of publicly traded securities through a wide range of investment options.
In addition to your RRSP, you could also consider investing in a Tax-Free Savings Account (TFSA).
TFSAs offer tax-free growth on your investments, and withdrawals are not subject to taxes. This
makes them an attractive option for both short-term and long-term investments.
With a TFSA, you could choose to invest in a variety of publicly traded securities, such as stocks,
exchange-traded funds (ETFs), and mutual funds. You could diversify your portfolio by investing
in a mix of different securities, such as large-cap stocks, small-cap stocks, and bonds.
Another option to consider is investing in a Registered Education Savings Plan (RESP). If you
have children or grandchildren who will be attending post-secondary education, an RESP could
help you save for their future education costs. Contributions to an RESP are not tax-deductible,
but the investment income grows tax-free until the funds are withdrawn for education
expenses.
You could allocate a portion of your inheritance to an RESP and choose to invest in a mix of
publicly traded securities. This would not only provide you with potential growth but also help
you save for the future education costs of your loved ones.
It is important to note that investing in publicly traded securities comes with risks. The value of
your investments can fluctuate based on market conditions, and there is no guarantee that you
will earn a return on your investment. It is essential to do your research and invest in securities
that align with your risk tolerance and financial goals.
In conclusion, if you've received an inheritance of $100 thousand - $200 thousand, investing in
publicly traded securities could be a smart way to allocate your funds. By contributing to your
RRSP, investing in a TFSA, and considering an RESP, you could diversify your portfolio and
potentially earn a return on your investment. However, it is important to consult with a financial
advisor before making any investment decisions and to ensure that your investments align with
your overall financial goals.

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