An Outside-The-Box Idea
May 14, 2010 2008-3035
Your Economic Stimulus Check: A Unique Spending Opportunity
It was a singular moment in marketing history when the IRS spent $42 million on a mass mailing to advertise the government’s intention to give out money in the form of Economic Stimulus checks, starting in May of this year. There is no truth to the rumor that Ed McMahon and an IRS agent will be delivering large cardboard checks to lucky citizens, but after filing their 2007 income tax returns, approximately 130 million Americans can expect to receive a $600 check per person, plus an additional $300 for eligible children under the age of 17.
The expressed purpose of this “rebate” from Uncle Sam: give the economy a boost by putting some spending money back in the hands of the people. So…
How should you use this “windfall?”
Politicians are hoping you will spend it on consumer-type items – an HD television, a weekend vacation, a used car, or a tank of gas for your SUV. Consumer advocates would recommend paying some past-due bills, and cleaning up your credit score. Some sober-minded financial experts might suggest an extra deposit to a Roth IRA. Even comedians have their Top 10 lists. Since everyone has an opinion, here’s another one:
Complete (or update) your will.
Not the first thing you might consider, but it’s a win-win scenario that makes sense for a lot of reasons.
- You are spending the money, so the economy gets a boost.
- You are improving your financial situation, so the consumer advocates and financial experts are happy.
- You get to check off one of the “things-I-should-do-but-never-get-around-to” on your list.
Making a will or establishing a trust is one of the things many people know they should do, but often never get around to doing. There’s almost always something more urgent. But since you know you have a windfall coming, why not designate it toward a project you know will deliver some long-term benefits?