New heirs shouldn’t blow the windfall headed their way, even though it’s tempting. Undoubtedly, it’s fine to allocate a portion of one’s inheritance towards pricey, fun goods or experiences, provided one “pays themselves first” and is in otherwise decent financial footing.

Undoubtedly, with tariffs, stagflation, recession, depression, and other concerning terms making headlines while floating around social media, it would be a very smart idea to think about battening down the hatches, rather than spending at a time when consumer spending could sink into the abyss.

Indeed, adding to that emergency fund (let’s say six months’ worth of expenditures to nine months’) while continuing to invest on the way down (we’re basically in the midst of a bear market right now) could be the move that pays the most dividends over the long haul.

This 30-something has three children and a $80,000 windfall. What’s the move?

With three dependents, the best move for this heir who took to Reddit searching for advice, in my view, is to stash a portion in a high-yield savings account (HYSA) while using the rest to invest in the stock market to save for the educational pursuits of one’s young children. Indeed, if you’ve got three children, odds are high that most of them are going to want to go to college, university, or vocational school to further their studies.

Of course, it’s difficult to predict the future, especially one that will be heavily impacted by the rise of artificial intelligence (AI). With Bill Gates predicting that AI will make for a great tutor (and even a teacher), the hope is that tuition rates will stop rising at such a rapid pace. Either way, I’d continue to invest the proceeds as though tuition will only keep surging at today’s scorching rate. At the end of the day, any AI-induced savings for post-secondary institutions, I believe, will probably not be passed onto students.

Either way, now is not the time to run scared as stock markets continue to correct. Arguably, it’s a great buying opportunity for a parent who’s saving for an expense that’ll come due in more than a decade from now.

Whether you choose to pursue the S&P 500 through a low-cost ETF such as the Vanguard S&P 500 ETF (NYSEARCA:VOO) or a more-aggressive, harder-hit option like the Invesco QQQ Trust (NASDAQ:QQQ), which may be a more rewarding fit for someone with a more than 15-year investment horizon, there are ample options to consider as one looks to save for their child’s future.

What about individual stocks?

Picking individual names may also make sense, especially for those seeking deeper value options that can enable one to outpace market gains through what’s sure to be a turbulent next few quarters. Looking to the gurus, such as billionaire investor Bill Ackman, could prove wise.

With Ackman betting big bucks on shares of Nike (NYSE:NKE) on weakness, I’d also be inclined to follow his coattails, especially today, with NKE stock going for $53 and change, far lower than where Ackman likely bought his largest batch of shares. Only time will tell what Ackman does with his position in the footwear juggernaut. Either way, 17.7 times trailing price-to-earnings (P/E) seems to cheap for such a glorious brand that may kick things into high gear under its new CEO, even with tariff headwinds ahead.

The stock has already shed close to 70% of its value. Of course, competition in apparel is fierce, and tariffs could hurt Nike shares further. Either way, I’d not shy away from the name if you’re a fan of the brand and want a deep-value play that has what it takes to outperform after spending the past four years sinking steadily lower.

As an added bonus, there’s a nice 2.92% dividend yield, which is the highest I’ve seen on the apparel firm. Indeed, NKE stock seems to be a new dividend stock after its multi-year descent. And it’s one that’s looking very underappreciated as things go from bad to worse for a firm that can’t seem to find its footing.

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