If you’ve received a federal stimulus check, or Economic Impact Payment, from the government and don’t require the funds to get by during the COVID-19 crisis, how should you spend it? Here are three suggestions:
It’s tempting to spend a windfall that you might not necessarily need right now. Considering the uncertain economic times, saving your federal relief check is a good idea. The Catholic United Financial Credit Union has Certificates of Deposit (CDs) that will keep that money protected and earning interest. You can choose a length of term from six months to four years. Visit www.catholicunitedcu.org for more details.
Putting all or part of your federal relief dollars into a Roth IRA has the obvious advantage of building on your retirement savings, which is something we should all do. Putting that money into a Roth means you can take it out after you retire without affecting your income tax footprint. Talk to a tax advisor about your specific situation. Review our information on IRAs* to see what we offer, or talk to your local Catholic United Representative.
Given the sour economic forecast right now, charities and non-profits are expecting to have a very difficult year raising funds and meeting their budgets. This is especially concerning since these charities are going to be providing additional relief services that so many more people in a troubled economy will be relying upon to survive. Giving all or a portion of your federal relief check to your Catholic parish or school, or another worthy organization, will make a big difference right now. If you want help maximizing a gift, the Catholic United Financial Foundation can provide free assistance with planning you gift to the charity of your choice. Contact the Foundation at 1-877-275-7145 or firstname.lastname@example.org.
*Catholic United IRAs are individual retirement annuities.