About Financial Planning: Put Your Tax Rebate to Good Use

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	from Jeremy Vohwinkle If you are one of the many Americans receiving the tax rebate from the 2008 economic stimulus package, you probably already have an idea of what to do with the money. But before you go out and spend that money, consider this: If you were to take your $1,200 rebate and stick it in an IRA, and managed to earn an average 8% return over 25 years, you'd end up with over $8,000. Still not excited about saving the money? Well, consider saving the $1,200 rebate, and then finding a way to save another $1,200 (just $100 each month) each year for the next 25 years with the same 8% return, and you'd have over $100,000! Sure, putting a little extra money in a mutual fund may not be as exciting as buying a new TV or BBQ grill, but it can get you into the habit of saving, and that can really pay off.
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Put Your Tax Rebate to Good Use The 2008 tax rebate checks are just now beginning to arrive in bank accounts, so this means many people are receiving an extra $600 to $1,200 or more. The purpose...read more             More Topics Financial Planning Forums Saving Money Basics Personal Finance 101 Planning for Life Stages Credit & Debt Management How to Establish Credit Financial Rules of Thumb All About Traditional IRAs A traditional IRA (individual retirement account) is an account that is used to save pre-tax dollars for use in retirement. An IRA can be opened at a variety of places such as a brokerage, mutual fund company, or even at your local bank...read more   Consider Funding a 529 Plan With Your Rebate With college expenses soaring, more and more parents are trying to offset some of the cost by putting money aside to help pay for their child's education. In 1996 the 529 plans were created to provide some tax benefits for those who are trying to save money for higher education...read more     Sponsored Links   Celebrating Mom Mother's Day Ideas Celebrate Mom this month with great gift ideas, recipes, and much more.

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