This year, the IRS is encouraging people to receive their payments by direct deposit. The advantage to this is that you receive it much earlier; in fact as early as May 2.

People electing check payments will receive those by May 16. People owing on student loans and child support payments will have their rebates garnished.

It has been predicted that a great number of stimulus check recipients will be spending their money on bills and necessities such as food, gas and mortgage payments. Others plan to splurge it on a vacation or car whilst around 18% plan to invest the money.

Stimulus checks are an ideal time to consider an investment strategy rather than just wasting the money. Although it can be seen as ‘money for nothing’, it is in fact money you have earned yourself, therefore you should treat it as part of your salary.

People who use direct deposit also will be among the first to receive the payments starting April 28. Direct deposits will be made daily and completed on the dates listed below. Payments should be received by close of business on the dates listed below.

DIRECT DEPOSIT

Last two SSN digits: Payments will be transmitted no later than:
00 through 20                                   May 2
21 through 75                                   May 9
76 through 99                                   May 16

Please allow additional delivery time, perhaps 3 to 5 days, since the paper checks are being sent through the mail.

PAPER CHECK

Last two SSN digits: Payments will be mailed no later than:
00 through 09                                     May 16
10 through 18                                     May 23
19 through 25                                     May 30
26 through 38                                     June 6
39 through 51                                     June 13
52 through 63                                     June 20
64 through 75                                     June 27
76 through 87                                     July 4
88 through 99                                     July 11

People who file a return after April 15 will receive their economic stimulus payment, but probably later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year.

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.

Two great ways to invest your stimulus money is through a CD (certificate of deposit) or a money market.

A CD is a short-medium term investment which is FDIC insured. It is available at banks and loan institutions. They are a relatively low risk investment as certificate of deposits yield an interest rate which is predetermined. You can not however withdraw your money from a CD before the fixed period without incurring large penalties.

Money market involves short term lending and borrowing. A cash management trust is a good way to invest in the money market. The trust involves a group of unit holders or investors who pool their money into investments which may otherwise only be available to highly wealthy investors. By pooling the money, small investors can reap rewards of big investments. Normally a management company is responsible for the investment strategy in a money market cash management trust.

By investing your stimulus check into trusted and reliable investments such as CD’s and the money market, you are ensuring that your refund works for you well into the future.

Superannuation holds tax benefits for people who know how to use it. These can include government contributions, personal contributions and undeducted contributions.

There is a Co-Contribution Scheme which is when the government pays $1.50 into your superannuation for every $1 you put in. This is limited to $1500 with a salary not less than $28,000 and there is a drop of 5c for each dollars over the threshold for co-contribution.

Other ways to minimize tax are to hold tax effective investments such as real estate. You can then using gearing strategies to increase tax deductions. For example, a negatively geared investment property is an ideal way to lessen your tax, however a positive geared property can increase your income.

Prepaying your expenses can also reduce taxable income. This is aimed at business owners and the self employed. You can prepay on expenses and then claim the deductions back against your salary.

Other strategies for tax minimization include selling your losing investments, utilizing tax managed funds, avoiding high turnover funds and stocks and tracking securities by tax lot.

Legal tax tricks are not a secret, you simply need the knowledge and a good accountant to take advantage of them.

The following books will assist you in becoming tax educated and advise on how you can save on tax.

A large percentage of the population has come to believe that government pension payouts are owed to them. However, investing your money wisely during your working career can give you significantly more money than the government ever could.

Investment books can assist you in discovering the best form of investment for you. You may wish to mix your strategy up and invest in stocks as well as superannuation. Or you may wish to rely solely on real estate investments as your future income generator. Whatever your choice, it is important to be educated about investing so that your retirement can be one where money is not a worry.

The following investment books will assist you in selecting the right investment strategy for you.