Category: Money

Congress and the Trump Administration is sending most American adults $1,200 as part of a massive stimulus plan.

Some extra cash never hurt, right? What are you going to do with that money? This article is going to discuss some ways to make that money grow over time.

3 Money Moves For Your Stimulus Check Money

You want to be smart with your cash, especially with a slow economy.  Here’s what you should do with that money:

1. Open A Savings Account

One thing you’re going to want to do is open a savings account. You don’t even need to go to a big fancy bank like SunTrust or Wells Fargo.

Honestly, you’ll save money in fees by opening a savings account with an online bank. Some of those are:

• Ally Bank
• Simple
• Goldman Sachs
• Charles Schwab

2. Start An Emergency Fund

With the extra money you have, it would be a GREAT time to start an emergency fund. The reason why is because you never know when you’ll be in a pinch (like a pandemic).

Try to set aside a portion of your stimulus check and add to it periodically.

3. Invest It

Because you want that money to grow, the best place for that to happen is to invest it.

With very little effort,  money market fund or high-yield savings account could bring you high-margin yields year over year.

Last Words

The “recovery rebate” is not designed to get Americans rich, it’s to get you right. You’re going to have to come up with a budget to make this money work for you.

Interested in other ways to save or make money? Check out our Money Section:

When it comes to investing in yourself, one of the most easiest and convenient ways is by contributing to a 401(k).

If you’re familiar with it, this article is going to be a wonderful refresher. If not, then we’ll educate you on what you need to know about a 401(k) and why it’s a smart investment.

What Is A 401(k)? And How Does It Work?

A 401(k) is a retirement plan that allows you to contribute pre-tax dollars. It is typically sponsored by your employer.

With most money transactions, the government adds a tax to whatever you do. But that’s not the case with a 401(k).

The plan allows employees to save and invest a portion of their paycheck. A 401(k) is a way for you to get more bang for buck because the contribution is untaxed.

However, when you make a withdrawal, you will then be taxed! But more on that later…

When Did 401(k) Plans Start?

The 401(k) originated in the late 1970s. That’s when the U.S. Congress enacted the Revenue Act of 1978, which included Section 401(k) of the Internal Revenue Code.

Section 401(k) stipulated that workers could defer taxes on compensation.

If You Leave Your Job, What Happens To Your 401(K)?

One of the most-asked questions is, “What happens to my 401(k) when I leave my job?” When this happens, you have some options:

1. You may be permitted to keep the money with your old company, although you’re allowed to move it without being penalized by paying income taxes.
2. You can “roll” your money to an IRA, (called a rollover IRA), which can be done by a banking institution of your choice.
3. You could take a “lump sum distribution,” which means you can cash out. If you do this, you will be hit with steep “early withdrawal fee,” perhaps as high as 10% (those age 59.5 and up are exempt).

Where Does Your Money Go In A 401(K) Plan?

A 401(k) can be viewed as a savings account, but it is more or less an investment account. There are three entities that operate your investment account. They are either:

• A brokerage firm
• A bank
• An investment firm

Which ever one you choose, your money will usually get invested in mutual funds, stocks and bonds.

he money will be invested for your retirement, usually in your choice of a variety of mutual funds.

What Is A Traditional IRA vs. Roth IRA?

The primary difference between a traditional IRA and a Roth IRA is that a Roth IRA allows you to pay taxes immediately on your contributions.

This has several benefits, including the fact that you won’t be saddled with them when you retire on a fixed income.

Interested in other ways to save or make money? Check out our Money Section:

You already know Atlanta is a haven for businesswomen, but the news gets even better. According to a new report from loan site LendingTree, Atlanta is among the top cities for small businesses.

The site commissioned an online survey of 1,281 Americans from Jan. 2-10, 2020 to come up with the findings, which show that Atlanta ranks #6 among top cities for small businesses.

Top 10 Places for New Small Businesses