What to Do With that Stimulus Check You Just Got

If you’re just now getting your tax refund or stimulus payment, or you just haven’t spent them yet, here are 7 tips on how you can use the money toward investment.

Investment Tips You Should Keep in Mind For Your Tax Refund:

  • Make sure you have emergency cash available
  • Contribute money to a 529 college savings plan
  • Take advantage of low interest rates
  • Don’t wait to find the bottom of the market
  • Start planning for your retirement
  • Make an investment in the world
  • Use online screeners to help select investments

Make Sure You Have Emergency Cash Available

Before investing money, you should make sure that you have emergency funds available first. That means if you’re able to, you should set aside your tax refund or stimulus payment in a high-yield savings account.

Contribute Money to a 529 College Savings Plan

This is a great way to save up for a child or relative’s educational expenses. This can cover many expenses, including K-12 tuition, college costs, or other school expenses.

Take Advantage of Low-Interest Rates

Right now is a great time to take advantage of low-interest rates. In other words, if you are in the market for a new car, this is a great time to make it happen. Many car dealers are offering 90 to 120 days of payment deferrals on car purchases as well.

You can even consider using your tax refund as a down payment on a new home, and you can take advantage of fixed-rate mortgages to lock in the lower interest rates.

Don’t Wait to Find the Bottom of the Market

There are many investors who like to wait to find the bottom of the market before they begin investing, but that isn’t always necessary.

Instead, you can invest a small amount each week. The market currently favors the digital economy, so you can consider stocks such as Amazon.com, Google, Microsoft, and Facebook.

Start Planning for Your Retirement

It is never too late to get a head start on planning for your retirement. You can use your tax refund or stimulus check to begin or increase contributions to your individual retirement account, 401(k), or 403(b).

Make an Investment in the World

One of the best ways to capture the eventual rebound of global economies is to invest in both international and U.S. stock funds.

Use Online Screeners to Help Select Investments

You can use online stock screeners to set up your investment goals and to plan a strategy. This can help you screen for the best funds or stocks that can best help you meet your goals.

You can even narrow down the results and screen by asset class, sector, fund family, and asset allocation.

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