Inheritance can be life-changing. From paying off debt to investing in the future, it’s a financial turning point for many families. According to the Federal Reserve data, on average, American households inherit $46,200. However, this number is inflated by large amounts passed down in wealthy families. Here, we’ll get into the numbers and explore how inherited wealth can impact your financial planning. Key Takeaways Large estates (over $13.61 million in 2024) are subject to federal...

Since our founding in 1999, Investopedia has been one of the most popular online sources of financial definitions, analysis, and advice for tens of millions of people every year. Our financial dictionary is the foundation on which this site was built, and it has given us a profound insight into what topics, terms, events, and technology define the financial world. For every major financial event, headline, trend, or development, we have a definition or explanation...

Inflation has been front and center in the news throughout the past few years. You’ve probably faced it head-on every time you’ve gone grocery shopping or bought a cup of coffee. According to the 2024 study from the Pew Research Center, 62% of Americans saw inflation as one of the country’s top problems. While inflation may be painful for your wallet, it’s a relatively normal part of the economic cycle. In fact, experts like to...

The past 25 years have been among the most pivotal in history for financial innovations. The mainstream introduction and rise of fintech have changed nearly every area of personal finances, from banking to investing and beyond. Whether or not you’re an early adopter of technology, financial innovation has touched your life in some way. To shine a greater light on some of these advancements, we’ve rounded up a list of the 25 most important financial...

Just 25 years ago, financial markets were grappling with the introduction of the internet to mass consumers. Now, players and regulators alike must pivot to the rise of artificial intelligence. Institutions, investors, and consumers have all felt the friction as our old-world economic systems merge with new-age technology and manage new risks. Factor in a global pandemic, and what a wild quarter-century it’s been. Investopedia has been taking notes: Here are the most significant events...

Wealth preservation is an essential but often skipped step between wealth creation and wealth transfer. Whereas wealth creation focuses on high-yield or long-term investments for cash flow, wealth preservation helps protect investments so they can be passively managed, appropriately withdrawn, and protected from inflation. Proper wealth preservation protects the value of your assets through various financial management and tax strategies. Depending on your goals, employing all or some of these strategies will benefit your current...