Should You Invest Your $1,400 Stimulus Check?
For the third time, eligible Americans are receiving a stimulus check as part of the government's efforts to strengthen the economy and alleviate financial burdens that many have endured throughout the COVID-19 pandemic. The latest payment of $1,400 is going to those who made $75,000 or less in 2019.
With the market frequently reaching new highs, it can be tempting to try your hand at investing that money. But are you ready to do so?
Before dropping your stimulus payment into the stock market, make sure you take care of other elements of your financial health. Have any unpaid bills? Pay them off. Credit card debt, a mortgage, car loan -- all of them carry interest (or fees) that can eat away at your wealth-building efforts. A good rule of thumb is to compare the interest rates you're paying to the long-term returns you're likely to see in the market. The SPDR S&P 500 ETF Trust, for example, has averaged annual returns of 10% since its inception in 1993.
Source Fool.com
