The Best Stock to Buy With Your $1,400 Stimulus Check
The U.S. government has already sent two rounds of direct stimulus checks to most Americans in response to the COVID-19 pandemic, and it appears likely that a third round will be on its way soon. President Biden's $1.9 trillion stimulus plan, which includes $1,400 direct payments per person subject to income limits, could become law as soon as early March.
This stimulus cash should first be used for necessary expenses or for building up an emergency fund. You should never invest money you can't afford to lose. Get your house in order before even thinking about putting your stimulus check into the stock market.
If you decide to invest your stimulus payment, putting the money into an index fund is a good option. While the stock market plunges from time to time, index investing pays off over the span of decades as long as you avoid panicking when prices drop.
Source Fool.com
