Handling an Inheritance: 5 Mistakes That Keep Americans From Building Legacies of Their Own

WASHINGTON, May 17, 2017 /PRNewswire/ – Research finds a third of Americans can expect to receive a significant inheritance. Treated wisely, these inheritances can help people meet their long-term goals, from rescuing their retirements to paying off credit card debt to financing family education.

Many Americans fall painfully short on those goals: about half, 52 percent, report feeling behind on retirement savings and nearly half, 48 percent, say they can’t save enough each month, according to a CFP Board survey released in August 2016.

Yet, despite their worries, even those lucky enough to receive an inheritance often don’t use it to meet their long-term goals. Where’s the disconnect? Windfalls can turn into mixed blessings when people indulge themselves or rush into their decisions about what to do with their inheritances, writes Senior CFP Board Ambassador Jill Schlesinger, CFP®.

“It took someone a lifetime to accumulate an estate. You can go slowly, too,” says Schlesinger. “Use your team to help create a timeline of goals and remember that an inheritance often coincides with loss, so give yourself enough space to grieve.”

In her latest contribution to LetsMakeAPlan.org, Schlesinger lists five critical mistakes Americans make with their inheritances.

Spending mindlessly: Some people begin mindless spending on “just a small indulgence.” A series of those kinds of purchases can morph into a spending splurge that might rob people of their ability to reach their overall goals for the inheritance.

Going it alone: Even Americans who manage their 401(k)s or their taxes well on their own can benefit from help. That’s because a windfall, whether it’s an inheritance or even lottery proceeds, is different. Those who receive an inheritance should consider assembling a team, including an estate attorney, an accountant and a CERTIFIED FINANCIAL PLANNER™ professional.

Making decisions too quickly: Americans should be careful not to make any big life decisions, like selling a house or quitting a job, too early in the process, Schlesinger says. An inheritance often coincides with loss, and many people aren’t thinking clearly when their emotions run high.

Becoming paralyzed in the investment process: Sometimes people who receive a lump sum become so worried about “investing at the top,” that they do nothing. They can consider dollar cost averaging (DCA), the investment strategy that divides available money into equal parts and then periodically puts the money to work in a diversified portfolio over time.

Providing for everyone except themselves: People love their kids, friends and charitable organizations – so much so that they sometimes neglect to take care of themselves. Push the pause button, Schlesinger says. There is plenty of time to provide generous support after a plan is established.

To decide how to handle an inheritance, consult a CERTIFIED FINANCIAL PLANNER™ professional, who can help you tailor a plan specific to your situation.

ABOUT CFP BOARD
The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 77,000 individuals to use these marks in the U.S.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/handling-an-inheritance-5-mistakes-that-keep-americans-from-building-legacies-of-their-own-300459295.html

SOURCE Certified Financial Planner Board of Standards, Inc.

Related Links

http://www.cfp.net

Treasury’s CDFI Fund Announces Availability of New Markets Tax Credits for 2017

WASHINGTON, May 2, 2017 /PRNewswire-USNewswire/ – The NMTC Coalition was pleased to see the U.S. Department of the Treasury release the Notice of Allocation Availability (NOAA) today for the New Markets Tax Credit (NMTC) competition for calendar year (CY) 2017. The CDFI Fund, which manages the NMTC program at Treasury, will provide $3.5 billion in NMTC allocations to be deployed in low-income rural and urban communities.

“To date, the CDFI Fund has made 1,032 awards, totaling $50.5 billion in tax credit allocation authority, to promote public-private partnerships and spur investment to some of our nation’s hardest hit and persistently poor communities,” said Bob Rapoza, spokesperson for the NMTC Coalition. “As a result, this highly competitive program has leveraged over $80 billion in investments to locally-driven projects and created more than 750,000 jobs.”

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. Congress extended the NMTC for five years as part of The PATH Act. (P.L. 114-113) in December 2015.

U.S. Department of the Treasury data indicates more than 72 percent of NMTC activity is in severely distressed communities with unemployment rates at least 1.5 times the national average or with poverty rates of at least 30 percent. In FY 2016 alone, the CDFI Fund, which operates the program at Treasury, reported that the NMTC delivered $3.16 billion in financing to 530 businesses, community facilities, and economic revitalization projects. Communities put the capital to work, creating nearly 11,000 permanent jobs and almost 27,000 construction jobs in areas with high unemployment and poverty.

Legislation was introduced in the House and Senate in February to secure the future of the NMTC. Congressmen Pat Tiberi (R-OH) and two colleagues on the House Ways and Means Committee, Congressmen Tom Reed (R-NY) and Richard Neal (D-MA), the Ranking Member on the committee, introduced the House bill. The bill currently has 25 Republican cosponsors and 20 Democratic cosponsors.  In the Senate, the bill was introduced by Senators Blunt (R-MO) and Cardin (D-MD) and has 5 Republicans and 6 Democrats signed on. The bills, both titled The New Markets Tax Credit Extension Act of 2017, respectively H.R. 1098 and S. 384, would ensure that rural communities and urban neighborhoods left outside the economic mainstream have access to financing to grow their economies, build up businesses and create jobs.

“At a time when in Congress is increasingly elusive, the strong bipartisan support of the NMTC is a testament to its proven ability to revitalize communities that need investment the most,” said Bob Davenport, president of the NMTC Coalition and special advisor to the National Development Council.

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s NMTC at Work in Communities report or check out its Project Profile Map.

Contact: Ayrianne Parks
ayrianne@rapoza.org 
(202) 393-5225

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/treasurys-cdfi-fund-announces-availability-of-new-markets-tax-credits-for-2017-300450022.html

SOURCE New Markets Tax Credit Coalition

Related Links

http://nmtccoalition.org