Growing Money
You have two choices when receiving money through your stimulus check. The first is to splurge it on items with no lasting value, such as a television, car or luxury items. The second, albeit much wiser, decision is to invest this money so that it continually grows for you well into the future.
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.
