Economic Stimulation & You

This year, for a change, the urgency you feel to file your federal income tax return is not so much your desire to be a model citizen, but that you won’t be eligible to receive the tax rebates promised by the Economic Stimulus Act of 2008 until you do.

It’s like a financial Value Menu. In short, single taxpayers who earn under $75,000 will get a rebate of $600, married couples filing jointly who make under $150,000 together will get $1200, plus an extra $300 for teach dependent child. The checks will begin to go out in May of 2008. So what should you do with this money?

The purpose of the Economic Stimulus Act of 2008 is to provide consumers some extra spending ability to help stimulate the economy and fend off a recession. And that is of course what most of us are longing to do. But is that the best use for your money? If you are in debt, it is most likely in your best overall interest to pay down your debt. And that’s not as bad as it sounds. It pays for itself in reduced interest rates and payments, and in an improved credit rating. That’s worth it for a lot of reasons, because it could ultimately provide you the ability to borrow money at less cost, whatever your need—even for the fun stuff. And you’ll sleep better at night too, another great benefit of fiscal responsibility.

Beyond that, it may be wise to remember what your parents told you when they gave you an allowance: “Don’t spend it all in one place.” First consider putting

 
some aside in a savings account. If you don’t have one, open one. This can go a long way in building your financial security.

And consider using some to add a little extra fun to your life. So how much should you spend? Look at your life and see what you need. Use a portion of the tax rebate for something substantial, something that will improve the way you live, or even help you make or save money in the long run. Look around your home—you could plan to save on heating by adding more insulation or increase your home’s summer appeal with a new deck. You could extend your education or buy upgrades to your computer system. Money spent on your home or on education is always a good investment.

Spend some time now to figure out what your real needs are and what they cost, then plan the best way for you to use your portion of the Economic Stimulus Act of 2008. You’ll be glad you did.

There is still time to reduce your 2007 taxes with an OECU IRA!

The deadline for filing 2007 federal income tax returns will be here before you know it. If you invest now in an OECU IRA, you may be able to deduct the amount of the investment from your 2007 taxes (consult your tax advisor for details).

With terms available from 3 to 60 months, OECU is sure to have a certificate that will meet your needs. Contact any OECU office for current rates and details.