Spend it or Save it?

[Puzzley]

If I get it, I'll use it to pay down some lingering debt in preparation for FIRE...

[Sandy]

It will either go toward mortgage, investments, or college savings, depending on my mood if and when the $$ arrives.

[kumquat]

Interesting question.

Since I'm Canadian I doubt that the US gov't will give me anything. If I was USian or the Canuckistanian gov't handed me free money, I'd p$ss it away on whatever made me feel best. My WR would still be < 4%

Please do that, it'll help me

[megacorp-firee]

I thought we had already answered this one.
I would spend it on wine and women and then squander the rest.
That's my story and I'm sticking to it.

... acutally being retired, I would just stick to my plan. So I guess that's a vote for saving it.... or maybe a quick cruise hmmm now you have me thinking ... which has not been a common occurance for me lately

[dessert]

From what I saw on TV today, I won't be getting anything.
Anyway those of you that get my share, spend it on something nice.
Maybe that will make the market go up!

[RetireeRobert]

Save it. Either for ourselves, or as a contribution to DD's IRA account for her. See the poll is hugely voting for "save"---I wouldn't have expected anything else from the ER members!

[Bigritchie]

I would have to support my country and buy a HDTV for my office, a XBOX360, PS3, and Mass Effect.

/waves flag!

[HFWR]

Quote:

Originally Posted by Bigritchie I would have to support my country and buy a HDTV for my office, a XBOX360, PS3, and Mass Effect. /waves flag!

That's the spirit!

Sorta brings a tear to yer eye, eh? Cue the Kate Smith...

I voted "save it"...

[travelover]

When things get tough, REAL Americans go shopping!

[megacorp-firee]

Quote:

Originally Posted by travelover When things get tough, REAL Americans go shopping!

Spoken like my DW

[Alan]

I voted save it, which is why, economy wise, I think it is more likely to have an effect if it was targeted to low income folks who are more likely to spend it, even if it might only be to put off the day they default on their mortgage

[growing_older]

I saw some analysis which indicates that typically when Americans get $1.00 in a stimulus package they spend about $1.40 of it, because it increases their "confidence" even when they know it's a one time boon. Not sure where they find the other $0.40 since tapping home equity would seem out of the question this time around. In any case, it tells me that my response is not what the government is looking for. I think of it like an unexpected bonus in my paycheck. If I didn't have the expense before, the act of getting the bonus doesn't change my expense plan. If I find money, I put it towards investments for FIRE. Maybe after I reach FI my response would change.

[Retire Soon]

I will send my rebate back to the United States Treasury to satisfy part my 2008 Estimated Tax Payments.

[Rustic23]

So far, only 20% would spend it. I hope the government isn't counting on this board to stoke the economy!

[citrine]

I would save it....allocate it to my Roth IRA for 2008.

[RockOn]

I hear there will be an income cut-off of about $110k/joint return. Does anybody have any info on income limits?

[Retire Soon]

Quote:

Originally Posted by RockOn I hear there will be an income cut-off of about $110k/joint return. Does anybody have any info on income limits?

The White House would like to see the rebate go to everyone who filed an income tax return and paid taxes. This would include taxpayers in higher income brackets. The Democrats, however, would like to see everyone who filed an income tax return receive a rebate, regardless of whether they paid little or no taxes. This would mean there would have to be a ceiling on income to subsidize the low income people. Some Democrats have suggested that couples earning more than $85,000 would not qualify for the tax rebate, while others wish to place the maximum at $110,000.
washingtonpost.com

[Sarah in SC]

Maybe I should do with it what we did with the last one--had a big party with our whole hippie neighborhood and bought some, ahem, "smoking supplies" along with lots of liquor! But that was more supporting the underground economy than the "real" one. Ask HFWR, he'll know what I'm talking about.

Ah, but times have changed, perhaps we'll put it towards some porch furniture instead. Sigh.

[HFWR]

Quote:

Originally Posted by Sarah in SC Maybe I should do with it what we did with the last one--had a big party with our whole hippie neighborhood and bought some, ahem, "smoking supplies" along with lots of liquor! But that was more supporting the underground economy than the "real" one. Ask HFWR, he'll know what I'm talking about. Ah, but times have changed, perhaps we'll put it towards some porch furniture instead. Sigh.

Supply and demand...

[SecondCor521]

Quote:

Originally Posted by growing_older I saw some analysis which indicates that typically when Americans get $1.00 in a stimulus package they spend about $1.40 of it, because it increases their "confidence" even when they know it's a one time boon. Not sure where they find the other $0.40 since tapping home equity would seem out of the question this time around. In any case, it tells me that my response is not what the government is looking for. I think of it like an unexpected bonus in my paycheck. If I didn't have the expense before, the act of getting the bonus doesn't change my expense plan. If I find money, I put it towards investments for FIRE. Maybe after I reach FI my response would change.

The only study I've seen mentioned said something different. It was a study of the 2001 or 2003 tax rebate program, and it said that approximately 2/3 of the money was spent within a few months.

Also, the WSJ said that higher income folks were more likely to save it, lower income folks were more likely to spend it, which explains the poll results here.

2Cor521