Did you know you can sell all or a portion of a life insurance policy, even term insurance?
(4 minute read)
The third round of stimulus checks have already started depositing into millions of American accounts. If you’re excited and have been wondering about what to do with your stimulus money, we’ve got a few creative ideas on how you can put your stimulus to good use!
Put more money into your retirement account.
Saving more money for retirement is always a good way to go. According to IRS regulations, the last day to invest in your traditional or Roth IRA for 2020 is May 17, 2021 and April 15, 2022 for 2021. Additionally, the maximum amount that you can contribute for an IRA is $6,000, unless you’re over the age of 50––then, it’s a $7,000 maximum.
Establish a 529 College Savings Plan for your children.
College expenses are rising by the year, which will make it more difficult for your children and grandchildren to pursue an undergraduate degree. By using your stimulus money to establish a 529 College Savings Plan, you allow that $1,400, and any additional money you deposit, to grow tax-free. The great part about this is that when you withdraw the money for expenses like tuition and room and board, the withdrawals aren’t taxed! If your grandchildren are young, then doing this now will greatly benefit them in the future.
Sow a seed into charitable organizations.
Donating to organizations that align with your values could have a positive impact on you and the organization. When it comes time to file your 2021 tax return, you can deduct a percentage of your donation on your taxes, up to $300 if you’re a single filer or $600 if you’re married, filing jointly.
Now, keep in mind that if you take the standard deduction, you won’t want to itemize your deductions.
Give back to local businesses.
Tons of businesses around the country are reopening after experiencing the financial setbacks caused by the Coronavirus, even the ones down the street from your home! By supporting local businesses, you give them the funds they need to keep operating. Even a small purchase goes a long way when local businesses have the support of their communities. And the best part about it all is that you’re giving back to those in dire need.
People choose different things to do with their money. From purchasing books for school or buying a new camera for a new photography business, the stimulus comes in handy by allowing you to do with it what you please. It is our hope, too, that you find a good place for your new stimulus check. Happy saving (or spending)!
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.
Life Settlement Advisors