Adam should start saving for his retirement fund. In terms of saving of retirement savings in equity recommended earlier can be a part of the retirement savings. Since equity saving is for long term, Adam can look equity investment as a part of retirement savings. Adam should not have a separate retirement planning. Adam should look for his investment objective in totality and have a plan which fulfils his long term as well short term plan. Thus investment in equity can also be part of long term and short term. Building emergency fund can help him to fund the short term immediate problems (Hillier, Grinblatt & Titman, 2011)
Retirement savings will help in living comfortably in his retirement. Since he already has a house it is a big plus for Adam since he need to worry about his living expense and he can chose to stay in this in retirement. He needs to save only for expenses during his retirement. He can do this by investing in equities and some portion in fixed deposit which will serve his liquid fund for his short term needs. In case of any shortfall he can look to equities investment which is not recommended but in the case he is totally out of cash (Upton, 2016).
He needs to invest his inheritance money. If he is willing to buy a car from his inheritance money then he can invest his money in fixed income deposits and thus can increase in investment in equity as he already has made a fixed deposit. This can serve as his liquid fund and can be used for short term uses or emergency. Since he has already invested in fixed deposit he can invest more in equities.
Adam should look to build his portfolio and diversify the same. He needs to cut down his expenses and look for investments like equity and fixed deposits which can help him in long run. Following is the suggestion for his wealth creation.