When your $50,000 tax-free Coronavirus check hits your hands, what are you going to do with it?
Wait, you thought it was only $2,400? Think again.
If you’re 25 years old and married (without kids), you and your spouse are about to receive one of the biggest checks in your life - $50,000. You ask, what do you mean?
When the Coronavirus bill is passed and signed by President Trump, you and your spouse will be receiving a tax-free check of $2,400. Most will view it for what it is. Found money that you can take a vacation with after the virus calms, a new game system or two while you’re quarantined, or a new set of wheels for your ride. Though, what if you did the contrary? What if you viewed it from the standpoint of your future self?
- You and your spouse receive the $2,400 tax-free check.
- You open a Roth IRA (call us if you need help).
- Use your government check to make a Roth IRA contribution. (You have until July 15th, 2020 to classify it as 2019. If contributed after that date, it will be a 2020 contribution.)
- If this one-time investment grows at 8% for 40 years (an assumption, but not an unrealistic one).
- It grows to more than $50,000.
I’m challenging you to think about this unexpected windfall with a fresh behavioral mindset. Instead of consuming it, will you make it the turning point for your financial future?
One more WOW number - $670,000!
If you add $2,400 to this new account each year for the next 39 years until you’re 65, you could accumulate more than $670,000 tax-free. “We’re from the government and we’re here to help you” could go from a bad joke to your reality!