What WILL/DID you do with that stimulus check? (Round 2)

[JRR]

Upgrade my battery bank to lithium.

[MPMalloy]

From Forbes: Will You Get A Second Stimulus Check?

[Lettuce Pray]

The wife and I are looking at either land with a house or raw land on which to build a house. At least ten acres in the country on which to build our happy place. So this money will go into the down payment fund along with overtime that she had been able to work.

[Kali]

I am getting an instant pot. The rest will go in savings until I need it. I am fortunate to be able to work from home.

[TacAir]

So, the bill is signed and the checks will eventually go out, what are your plans for yours?

Knowing this crowd I suspect a lot of that cash is going to be plowed back into replacing depleted supplies (as best as possible) and expending existing preps but let's hear some specifics.

(this thread may be moved - still not sure what area is best for it)

What will I do? Leave it in the bank and use it to pay the increased taxes from getting the check.

Happens every year with the PFD - I give back 1/2 to all of it because it pushed me into a higher bracket.

I suspect folks will be shocked when it come up and is taxes as "unearned income; next year...

[boskone]

Just got my tax return and apparently my stimulus check is scheduled for Wednesday.

A bit of that--probably less than the return--will go to beefing up preps. I'm honestly doing pretty well, though this experience has revealed a few potential weaknesses.

The rest'll get moved over to a savings account, which I generally (and somewhat deliberately) forget to account for. I view it as a surprise funding source in an emergency.

[RoneKiln]

I am getting an instant pot. The rest will go in savings until I need it. I am fortunate to be able to work from home.

Hopefully the instapot makes life easier and frees you up to write again.

[Kali]

That’s the plan! I miss writing. I am working from home, cooking all meals, and virtual schooling but need to find some extra hours in the day!

[M813]

Plowed mine right back into savings. I want at least a year of saved income.

I'm working right now but I have no faith in my company. It is a large and faceless corporation that generally flies under the public radar and you'll never convince me that it cares about its employees at all. If the axe falls upon me, I'm pretty sure it will be totally without warning.

My daughters aged out of my health plan (and have their own) so that greatly reduced my monthly health care costs. Just got a raise. Both cars pay off in about 7 months. If I manage to stay employed for 7 more months, that will translate into a total of 15 months of income saved.

I could sell my HMMWV for around $15k right now and my M813 for around $7-8k. That would stretch me out to 2 years of normal life without working.

Of course, if things got really bad I would just mail the house keys to the mortgage company and set off on the sailboat. All the comforts of home in a smaller package. Fully paid for. Two years of bill payments on land would fund me for 5-7 years, living at sea.

[woodsghost]

Of course, if things got really bad I would just mail the house keys to the mortgage company and set off on the sailboat.

This is an attitude I appreciate. The idea of literally losing everything is something I think a lot of Preppers fight. But in my humble (if cranky) opinion, I think we need to be willing to drop everything and get out of town, if needed. I'd rather not lose that kind of investment in time and treasure, but I also think, mentally/emotionally, we need to be ready to jettison and start a new life some place else.

[M813]

Of course, if things got really bad I would just mail the house keys to the mortgage company and set off on the sailboat.

This is an attitude I appreciate. The idea of literally losing everything is something I think a lot of Preppers fight. But in my humble (if cranky) opinion, I think we need to be willing to drop everything and get out of town, if needed. I'd rather not lose that kind of investment in time and treasure, but I also think, mentally/emotionally, we need to be ready to jettison and start a new life some place else.

Divorce taught me how to detach from my possessions.

I was in a bad marriage for 19 years. I stayed to raise my daughters. I always knew I would leave eventually.
The final few years, I worked hard to give my spouse every opportunity to grow up, to listen, to be more considerate, to change, so that we could avoid a divorce. She opted to remain a petulant child.

Once my kids were legal adults, I began planning my exit. I paid off all the bills except for the mortgage and her car payment. I sold all of my possessions and resigned myself to just giving her the house.

When I told her I was leaving, there was literally nothing left to fight over. No child custody or support. No revolving debt. No stuff.

I told her that I would be living aboard my sailboat. I said that if she forced me to sell it and split the proceeds, I would sell it for $1.00 and give her .50 cents. I told her that dock rent cost me $400/month. If I was forced to sell the boat and rent an apartment, it would cost me $1200/month and I would have less funds to give her. I cut every leg out from under her, so that she couldn't touch me.

She came at me with a kitchen knife, then tried to turn it on herself. I told her I'd have her committed for attempting self-harm if she didn't calm down. Later, she tried to bad-mouth me to my daughters. As I suspected, being adults they were not prone to manipulation. They'd seen how I was treated for years and told her that she was wrong and didn't change their opinions of me.

A year later, she abandoned the house to me and told me to just get her name off the mortgage so it didn't impact her credit score. I agreed so long as she waived any and all rights to any proceeds should I sell the house later. So in the end, I got the house back.

Being freed from nearly all of my possessions was very liberating. I could definitely do it again.

[CrossCut]

Checked our credit union account today, wife and I got ours and there's an extra deposit for an additional $1,200 I can only assume is to my MIL who passed away last year. We did her estate taxes, and used our account for the direct deposit of a small amount she was due.

Looks like this is a common occurrence, and nothing at IRS.gov I can find about how they want to handle it. A lot of unofficial news sites are saying it's unlikely the Treasury / IRS will require returning it if it's been direct deposited. So, for now at least, looks like...



Not sure what we'll do with it, the only thing I know for certain my MIL would not want is us returning it willingly to the government.

[NT2C]

Checked our credit union account today, wife and I got ours and there's an extra deposit for an additional $1,200 I can only assume is to my MIL who passed away last year. We did her estate taxes, and used our account for the direct deposit of a small amount she was due.

Looks like this is a common occurrence, and nothing at IRS.gov I can find about how they want to handle it. A lot of unofficial news sites are saying it's unlikely the Treasury / IRS will require returning it if it's been direct deposited. So, for now at least, looks like...



Not sure what we'll do with it, the only thing I know for certain my MIL would not want is us returning it willingly to the government.

I am not a lawyer or tax specialist by any means and my advice on this is worth exactly what you're paying for it but it seems to me that this could just be considered part of her estate.

[raptor2]

Not sure what we'll do with it, the only thing I know for certain my MIL would not want is us returning it willingly to the government.

None of my business and not my problem....BUT... the .gov is an organization that will spend $10,000 to get back $1,200.
Just because it is their error does not mean they will not make it your problem.

This stimulus payment is actually/technically a rebate on your 2020 taxes paid noe based upon either 2019 or 2018 which ever was filed. When you file your 2020 taxes (as of now but that too can change) there will be a spot to put this stimulus payment on the return and apply the income test. Those who do not meet the test based upon 2020 taxable income are supposed to pay back the credit credit at that point. Your stimulus payment is not taxable if you qualify but your MIL's in addition being erroneous may be taxable income to you.

In this instance, this payment raises a bunch of issues from the simply "is this payment reportable income if you keep it?" to shall we say much thornier issues.

There is presently a furor over payments to deceased people and it is a simple matter to run the TIN of the SS dead list against the TIN of the payment list and generate a list of names and amounts that the .gov wants to recover from erroneous recipients.

I would suspect that by April 15, 2021 there would be a process in place to recover or address these payments.
My suggestion would be to leave in that account, ignore the extra $1,200 in the account (do not move it) if asked you could then truthfully say "Hey you put it there and it has not moved".

[CrossCut]

None of my business and not my problem....BUT... the .gov is an organization that will spend $10,000 to get back $1,200.
Just because it is their error does not mean they will not make it your problem.

No argument there. We're in wait&see mode, we're not rich but not like paying that out of pocket would break us either. It is kind of tempting to put it to use, maybe 1,200 barrels of oil at today's price - wonder if that includes shipping costs?

[MPMalloy]

Of course, if things got really bad I would just mail the house keys to the mortgage company

I didn't think I'd hear about jingle-mail again. Good luck, M.

[M813]

Of course, if things got really bad I would just mail the house keys to the mortgage company

I didn't think I'd hear about jingle-mail again. Good luck, M.

Oh, I'm a long way from that happening. I just plan ahead... way ahead.

[AlexanderPain]

So far, I've managed to keep the stimulus money in savings. There are a few things we "need" for our home. Then, there will be a little "luxury" for my wife and me. I'll probably buy an American-made item (entry-level Grado headphones or a MinuteMan watch) for my luxury item and then I'm hoping that we can keep about 2/3 of the money in the bank. Of course, the car is 10 years old and has a 140,000 miles and we need a second car, so . . . Life in America will go on.

[Jake832]

Wife: "How much of that is my money?"
Me: "Half honey, just like everything."

Moved it immediately to savings. Still quietly burning a hole in her pocket.
I've heard new wood floors, build a fence, and a new 'family' laptop floated so far.
I'm actually onboard with the backyard fence idea, just probably after economy does whatever it's going to do.

For now, it's getting held until we see what the next year brings.

Note: if anyone is really in a pinch, and you have a mortgage or car payment, call the bank, you can do a "deferment forbearance" or something similar due to covid caused financial distress... basically skip payment and add it to the end of the loan. Think they have to give you 90 days if you need it.
May free up cash if anyone is having a tough time.

We're okay and thankfully still employed and working from home, but many aren't so fortunate.
Hang in there all!

[boskone]

Of course, the car is 10 years old and has a 140,000 miles and we need a second car, so . . .

I'm not sure what the former has to do with the latter.

My truck's half-again the age and twice the mileage. The only reason I'm looking to replace it is because I need something with a smidge more power.

(Side note: I'm annoyed that the hybrid F-150 is basically a standard hybrid. I was really hoping for a full-electric drive train with ~50--or optimally 100--miles range, and an ICE range extender.)

[NT2C]

Of course, the car is 10 years old and has a 140,000 miles and we need a second car, so . . .

I'm not sure what the former has to do with the latter.

My truck's half-again the age and twice the mileage. The only reason I'm looking to replace it is because I need something with a smidge more power.

(Side note: I'm annoyed that the hybrid F-150 is basically a standard hybrid. I was really hoping for a full-electric drive train with ~50--or optimally 100--miles range, and an ICE range extender.)

To echo boskone, while we do have a pretty new Jeep we also have a 23-year-old pickup with 160k on the clock that is one of the most reliable vehicles I've ever driven. Regular maintenance and care in how you use it (ie: don't make a habit of off-roading a stock Civic) go a long way toward vehicle longevity and reliability.

[RoneKiln]

Regular maintenance and care in how you use it (ie: don't make a habit of off-roading a stock Civic) go a long way toward vehicle longevity and reliability.

Quit judging me! My 24 year old civic is a tough little tank. It earned the name Lil' Truck! The only thing not stock on it is the trailer hitch. Even the radio is original. It only has 240k miles on it.

Its predecessor was running strong with 360k miles on it when I sold it and bought my current one. I was embarrassed at how much sawdust and wood splinters I vacuumed out of it. I hauled a LOT of lumber with her over the years.

[NT2C]

Regular maintenance and care in how you use it (ie: don't make a habit of off-roading a stock Civic) go a long way toward vehicle longevity and reliability.

Quit judging me! My 24 year old civic is a tough little tank. It earned the name Lil' Truck! The only thing not stock on it is the trailer hitch. Even the radio is original. It only has 240k miles on it.

Its predecessor was running strong with 360k miles on it when I sold it and bought my current one. I was embarrassed at how much sawdust and wood splinters I vacuumed out of it. I hauled a LOT of lumber with her over the years.

Ah, but do you habitually off-road it?

[M813]

<snip>
Note: if anyone is really in a pinch, and you have a mortgage or car payment, call the bank, you can do a "deferment forbearance" or something similar due to covid caused financial distress... basically skip payment and add it to the end of the loan. Think they have to give you 90 days if you need it.
May free up cash if anyone is having a tough time.

Consider that during the Great Recession, it took nearly a year to evict many mortgage holders once they entered foreclosure.
The economic fallout of the pandemic will be far worse.

If the worst should befall you, homelessness is not imminent, you'll have time to plan and come up with alternatives.

- pay your mortgage until you can't
- call the bank and ask for forbearance or an extension
- once forbearance runs out, the clock starts ticking and paperwork starts getting processed. 30, 60, 90 day notices. Then you'll enter collections. Then you enter foreclosure. You'll get all sorts of nasty phone calls and letters in the mail but the process is usually pretty slow, especially during times of national hardship.

Don't panic, just accept that your life is going to change and make an exit plan. Figure out if you can afford storage for your belongings. Sell stuff that doesn't have sentimental value or doesn't fulfill an immediate need. Talk to family to see if anyone can take you in. Hold aside some cash for a small, older RV that you can live in if staying with family isn't an option.

For those of you with wives and children, the sooner you warn them that major change will be happening and explain what the plan is, and what sacrifices they'll be required to make, the less jarring it will be and they'll cope with it better.

People who lost everything during the Great Recession and filed for bankruptcy, often cleaned up their credit scores within 4 years and bought homes again once they found steady employment. Foreclosure and bankruptcy are serious, but they're not death sentences.