Bob O'Brien
Head Instructor
bobrien@mywealth.com
It’s pretty safe bet that they are coming! And it is more a question of when and how much?? President–elect Obama, Nancy Pelosi and Ben Bernanke have all been in favor of a stimulus, and President Bush is open to it. Most economists and financial experts agree that the government has to borrow its way out of trouble, and why not, it’s never been cheaper for the Government to borrow. They are the only part of the economy that really can borrow now!
So, if you are entitled to a check, what should you do with it? It really depends on where you are financially.
If you are smothered in debt, use it to pay off or down your debt. If you are in this situation you have stimulated the economy enough in the past, and let the other people take care of it. Remember, though this is just a “shot in the arm” and you need start budgeting your money better! I can’t help but think that one of the reasons many people out spent their means over the years, was because they felt it was their patriotic duty to spend and help the economy. We have been encouraged in the past to spend in order to avoid recessions.
This is a quick look at a person who MAY be able to buy a Big Screen TV with their check!
1. They have at least 6 months of expenses in cash as an emergency fund … maybe even 9 months
2. They are and have been contributing regularly to a 401k or IRA for their retirement
3. They have an investment strategy and consistently seeking more information
4. They are mindful of taxes and what a huge expense that can be over their life.
5. If they have a family, they are insured with Life/Health/Disability and saving for their child’s education.
There is one thing you should absolutely not do with your stimulus check. Spend it before you get it! This is exactly what has led to many of the economic problems.
Happy Investing! and check out our courses at www.mywealth.com and ask me questions directly!
Bob O'Brien
Sr. Instructor
