Sep 24, 2020
83 Views
0 0

Stimulus Maximization: How To Make Money With Your Check

Written by

This is a wierd time at the moment and I am hearing a lot about how the current environment is impacting different people in several ways. However some thing that continues to return up is that the rich keep getting richer and the poor getting poorer. It s the seemingly never-ending battle between the Have s and Have Nots

 

While I don t desire to debate how and why this happens or how it’s changed I d rather talk about and share what the Have s do in situations like this: They find easy methods to turn what they’ve into more… and you are able to too. The reality is the Have s develop saving and investing skills early on in life and consciously stay on the look-out for easy methods to improve their financial situation

 

Others spend their money and hope things will improve due to working harder and making more income. So instead of working harder and longer consider this play on the way to maximize your stimulus check like a Have instead of a Have Not. Please note: I realize not everyone seems to be in a situation to try this and that some everyone is truly in need

 

This is simply meant to be a hypothetical example of the way people could make their money work for them instead of working for it. This will not be the correct time or situation for a strategy like this but it may work for people sooner or later as well when things improve

 

Whether you have already done your 2019 taxes or not when you get your stimulus check consider investing some or all of it in a Traditional IRA to feature value to it right away. Here s the way it works. Any contribution to an IRA reduces your annual income thus the quantity you get taxed on

 

So let s say you as somebody make $70 000 qualify for the $1 200 stimulus and haven t done your taxes yet. As it sits at the moment when you file your taxes you’ll get taxed in your full income of $70 000. However if you are making a contribution of $1 200 to an IRA which will adjust your income down by that quantity ($1 200) and therefore you’ll only be taxed on $68 800

 

PROMOTED Grads of Life BRANDVOICE | Paid Program
Business Has A Role In Dismantling Racism: 3 Takeaways From Our Conversation With Dr. Manuel Pastor And Amelia Ransom
Civic Nation BRANDVOICE | Paid Program
Going All In On Young Voter Education
UNICEF USA BRANDVOICE | Paid Program
Why COVID-19 Is Hitting Black And Hispanic Children Especially Hard Since somebody making this much money will be within the 22% bracket that contribution to an IRA would generally speaking save this person 22% of the $1 200 or essentially turn it into a further $264

 

While there are some nuisances as to how our tax system works and the precise amount of savings it’d create for every person the thought is what’s important. In theory this may provide you with an immediate 22% return in your stimulus check. How many people can say they did that? Obviously a pair hundred bucks isn t going to get you a brand new Porsche or mansion on the hill but understanding the method and taking the action is what its all about

 

It s shifting your mindset to spotlight making your money work for you. This is how the Haves outpace the Have Nots they search for easy methods to turn what they’ve into more instead of less. That being said for some people using a standard IRA won’t provide as big of a tax savings benefit so in those cases consider a Roth IRA

 

If you don t qualify for a Roth then consider opening up a daily brokerage account. No matter what invest some or all of this money in case you can. In either case the first step is to open an IRA Roth IRA or brokerage account at an internet firm which you like and trust

 

Visit some different sites like a Fidelity Vanguard Etrade etc to work out how they feel and appear and what offers they could have. Heck if you are able to open an account and get free trades your making much more money by saving on those typical costs as well

 

Once the account is open and your stimulus funds have been deposited consider investing the cash into some individual stocks which you like and feel have a great opportunity to return out of this economic storm better than ever. In other words which companies have very strong balance sheets distinct competitive advantages over its competitors and which have solid reputations and management teams

 

That each one sounds good right but how is a novice investor supposed to understand which companies fit that bill? Well sometimes the best thing to do is just look around. What do you notice everywhere? Prime trucks and Amazon boxes? People joining Microsoft teams Apple products folks still in line on the drive thru at McDonalds waiting to get into Home Depot while drinking Diet Coke or Starbucks? You don t ought to necessarily get fancy with investing or make big bets to be a successful investor

 

What you would like is time and discipline. Now a number of you are able to notice that you are able to t buy even one share of Amazon with your entire stimulus check of $1 200. Or that purchasing just four shares of Apple or one share of Google would gobble everything up

 

In those cases you are able to look to an ETF just like the QQQ because it reflects the NASDAQ which holds Facebook Amazon Apple Netflix and Google or what is named the FAANG stocks… Added bonus it also holds Microsoft Intel etc. I think it s also important to point out which you don t have to worry about trying to determine when the best time to take a position is

 

Frankly nobody knows whether the market has already hit a bottom or if it’s going to return down. Reality is where we sit at the moment continues to be significantly below in case you bought any of those companies just three months ago. Therefore focus on the next 18-24 months and recognize that you’re taking a necessary step that may change the way you check out and use your money

 

Overall during times like these people have a chance to evaluate where they’re at and what they’re doing with their money. While not everyone is able to invest their stimulus check it s important to understand different easy methods to leverage your money and to get it working for you

 

Earlier I eluded to a few of the difference between the Have s and Have Nots but what I disregarded is that there are not any firm or specific indicators as to what makes someone a Have or Have Not. Therefore I’ll suggest that it s a state of mind a belief in yourself and a willingness to take action and an interest to profit more

 

Welcome to the club!

Article Tags:
· ·
Article Categories:
Make Money

Leave a Reply