Should You Invest Your Stimulus Check in Index Funds?

In case you missed the news, $1,400 stimulus payments have begun hitting recipients' bank accounts. If you're entitled to one, check your balance -- that money may already be there waiting for you.

Not everyone will receive a stimulus payment under the current round, and that includes some people who may have gotten one in a previous round. Individuals earning $80,000 or more and married couples earning $160,000 or more won't qualify for this stimulus round because the eligibility cutoffs were lowered. But if you're single earning $75,000 or less or married earning $150,000 or less, you should either have your $1,400 per person already or receive it pretty soon.

A lot of people will need their stimulus funds to pay for essential expenses -- things like rent, food, and utility bills. If you're in that category, you should absolutely use that money to cover your basic needs. But if you're not in that boat -- say, your income hasn't been cut at all and the $1,400 is truly a bonus payday for you -- then it makes sense to put that money to work by investing it. And index funds are a good option to consider in that regard.

Continue reading


Source Fool.com