Jeremy Vohwinkle - About.com Financial Planning Guide - 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.

In the Spotlight

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

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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
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Jeremy Vohwinkle - About.com Financial Planning Guide

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About Financial Planning: Put Your Tax Rebate to Good Use