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Tax Stimulus Dates Have Been Released

UPDATE – May 9 – My last 2 digits are 37,  and I just got the direct deposit today, May 9.

Everyone has been asking “when will I get my stimulus check?” Below is a table that the IRS put out recently, telling us when we can receive the Direct Deposit or check. The Tax Stimulus Dates are now announced.

  • Breaking news April 25

    Stimulus payments starting early

      Treasury Department says it will deposit the first 800,000 payments four days earlier than expected in effort to boost economy. I cannot find a change to the schedule published on the IRS site though.

    Below are the schedules for the stimulus payments related to tax returns processed by April 15, 2008.
    If you want the whole stimulus explained in simple terms, read my post here called, “Tax Rebate Stimulus Details Explained“.

    Read the Bible for some real peace.

    1 John 5:4

    for everyone born of God overcomes the world. This is the victory that has overcome the world, even our faith. New International Version (NIV)

    Stimulus Payment Schedule for Tax Returns
    Received and Processed by April 15

    Direct Deposit Payments
    If the last two digits of your Social Security number are: Your economic stimulus payment deposit should be sent to your bank account by:
    00 – 20 May 2

    21 – 75

    May 9

    76 – 99

    May 16

    Paper Check

    If the last two digits of your Social Security number are: Your check should be in the mail by:

    00 – 09

    May 16

    10 – 18

    May 23

    19 – 25

    May 30

    26 – 38

    June 6

    39 – 51

    June 13

    52 – 63

    June 20

    64 – 75

    June 27

    76 – 87

    July 4

    88 – 99

    July 11

    Here is a link the the Tax Stimulus dates and info from the IRS site.

    The question is, what are you going to do with this money? The Government is betting that you will just go out and spend it. Will you? To stimulate the economy, this money needs to be spent right away on goods and services.

    I do realize that some who get the money, will have to use it to pay for food and shelter. I don’t want to seem uncaring in that regard. Food and shelter have to come first in any family budget. ( Thanks to a couple of comment’s below, to remind me of this.) I have ate my share of beans and cornbread. Actually , I grew to like it as it was a routine food down on the farm.

    I will be putting this money toward a loan I took out to help pay for one of my son’s college tuition. That is not going to help the Government achieve their goals. Sorry Uncle Sam. ;) You can use this money to start that Roth IRA. See my post on 16 Roth IRA Facts and see all the reasons why you have to get that going.


  • Roth IRA Beneficiary Form is Very Important

    Do you know who is your beneficiary on your Roth IRA?  I hope so, and I hope you understand who it should be.  Some of the most important benefits of a Roth IRA over a standard IRA are the tax benefits to your heirs. If you have not named a beneficiary for your Roth IRA, then the proceeds will likely go into your estate.  This will then be paid out of your estate in accordance with the will and the laws in your state.  It will likely be settled and paid to the heirs quickly.  So that will be the end of the tax free earnings for your heirs.Aug28$06

    On the other hand, most people do have a beneficiary named for their Roth IRA, and it is usually their spouse.  This is much better than letting it go into your estate.  This way, the IRA is allowed to be commingled with your spouse’s own Roth IRA and the mandatory disbursement rules would be based on the spouses life expectancy. There is much more you can learn at the IRS site concerning disbursements for beneficiaries.

    Name your IRA beneficiary now and keep a copy  of the accepted "signed" form in your house with your will or somewhere with all your important papers.  You must be able to prove you have named the beneficiary and in some cases the Roth IRA account managers have lost the form or forgot to transfer it, etc.  Trust me, keep a copy to back this up.

    You can also name a secondary beneficiary, so in case the primary has died before you, it would go the them.  The secondary is usually your children, but you must name them.  Actually , depending on how much you have in your Roth IRA , you may wish to apportion some to your children as a co-beneficiary.  This will allow them to extend the tax-free earnings based on their age and life expectancy, and will reduce the total amount in your spouses estate.  This can be very important as you approach a total estate of 2 million dollars.   Everyone can pass 2 million dollars to their heirs , estate tax free, but every dollar over that amount is currently taxed at 45%.  OUCH!

    Imagine if you had $2.5 million.  $2 million would not be taxed, but your heirs would lose $225,000 dollars of the other $500,000.  That would not happen if you plan properly.  Take the time to learn this stuff.

    Bottom line is the beneficiary form is like a will for your Roth IRA. Be sure you have one.

    This web site offers general information for managing personal finances and does not recommend specific financial actions.  For financial advice tailored to your situation, please contact an expert such as a CPA or a personal financial advisor.

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    Why Go to College?

    I usually write about taxes and retirement and such, but the joy of paying taxes only comes if you have a good income.  I see so many young people today who are "uncertain" why they are going to college.  Here is a list of just a few good reasons to go to college.  Some people may also just need some reassurance that college is the right thing to do.

    1.  All extra education you get after high school, improves the chances that you’ll earn good pay in your life.  As it happens, most college graduates earn a significantly higher amount of money than those who don’t go to college.  If you are not certain what career to pursue, just jump in to one and keep reading and thinking about what you want to do.

    2.  Education beyond high school gives you a lot of other benefits. There is so much maturity that occurs when in college.  You may also meet lifelong friends and maybe even your spouse in college.  You will also have many more "new" opportunities to explore that you would not have if you did not attend. I am very proud of my degree from VA Tech.  I also have a lifelong kinship with those who  have graduated from VA Tech.

    3.  Having a college degree will make it much more likely that you will always have a job.  There are some studies that that say by 2028 there will be 19 million more jobs than there are educated people to take them.

    4.  Education after high school is more important for this generation than any before.  Technological advances have caused many jobs to require a college diploma.  Most businesses want to hire someone with a proven history of solving problems.  You learn how to solve problems in college.

    I hope if you needed encouragement , you got some.

    College is not the key to happiness, by any means.  College is a key, though.  It is likely a way to equip yourself for some success.  It gives you a good start.  Learning must be a lifelong thing, though. 

    I have continued to learn and am learning right now about monetizing websites.   See my other websites if you are interested in buying an airplane or want to read news about healthy skin.

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    5 Facts to Consider When You Can Retire

    There are many things to think about when planning to retire. You need money to retire, not age.  That is one thing, but there are a few that aren’t totally concerned with money.  Here is a list of 5 things you need to consider before you decide to retire, and if you should retire early.

    1.  Health Status

    Being diagnosed with a chronic health problem or a debilitating illness should greatly influence your decision as to when to retire. If you are in excellent health, you may decide to retire in order to travel or pursue other interests before any health problems occur.  On the other hand, if you have a chronic disease you may want to retire just to "enjoy" some of your remaining time.  It can go both ways, a very individual decision.

    2.  Family Responsibilities

    Sometimes the decision to retire will be based  on the needs of your family members, for example, grandchildren or aging parents in need of care. Statistically speaking, it is much more likely that women will time their retirement according to family needs. Personally, I want to be able to pay off my kids college bills, before I retire.  This will influence the "when" for me.Retire and sail the seven seas

    3.  Spouse Retirement Date

    When both people are working, the timing can be important concerning retirement dates.  If you plan to travel the world with your spouse, it becomes important that your spouse retires when you do.  This will usually impact the "when" for retirement.  You have to ask yourself, will you be happy at home for a few years waiting for your spouse to retire? Or will this become a friction point in  your relationship?.  This is very important to consider.

    4.  Contact with Others

    Having contact with others, be it family, friends, or co-workers can be an important consideration when you are deciding when you can retire. You may have many friends at work, that you will not see nearly as often.  Are you ok with that?  Have you developed friendships outside of work? If not, maybe you need to make that a priority now. Women, in particular, who have worked outside of the home, frequently report missing their work-related friends once they retire.  Men probably just don’t "report it", but also likely miss the relationships that they had.  As I talked about in It Takes Money to Retire Not Age, it may be important for your retirement years to develop a new hobby and a new group of friends as well.

    5.  Financial Resources

    We have to admit the obvious here.  It takes money to retire. Your financial status and security will significantly impact your enjoyment of those retirement years.   First, those with more money will likely have more opportunities.  Second, being financially "able" makes it likely that you will have a comfortable and safe place to live. Finally, quality healthcare will always cost more and be more accessible when you can afford it.  As the Bible says, money is not the root of all evil.  The Bible says, the Love of money, is the root of all evil.  Money won’t make you happy in retirement, but the lack of it may make you unhappy.

    You may notice I did not say anything about investing in a Roth IRA.  Okay, now I did. Shameless, I know, but the Roth IRA is so important.

    You can also subscribe to my posts by email, so you won’t miss a thing.  Let me know what you think.  Leave a comment here for all to see.  Add to this post and make it really good. I am sure we could make this really "25 things to consider before retirement."


    It Takes Money to Retire Not Age

    It takes money to retire.  Most of the time , you hear people talking about retirement “age”. Age really has little to do with it.  Money is what you need to retire. You may retire right now if you can afford it. But before you think about how much money you will need, there are other things to consider. 

    If you retire, what are you going to do?  Why retire if you don’t have anything to do?  It might be that in preparing for your later years, you need to develop a passion for some other things.  Some people already know what they will do.  Say you have always wanted to donate your time at your church or maybe you already have a hobby that you want to put a lot of time into.  That’s great.  You’re ready from that aspect.  If you don’t know, start discovering it now. I just started to learn how to play golf.  At 49, I decided I really wanted to learn, and I am learning. ( Wow, it is so much harder than I thought it would be).

    Okay, how much money do you need to retire? I found this quote from over at, from an article.

    “Drew Denning, vice president for the retiree services division at the Principal Financial Group in Des Moines, Iowa, said boomers also need to “make sure your nest egg is at critical mass.”

    He noted that studies by the nonprofit Employee Benefit Research Institute in Washington, D.C., and other groups have found that a majority of Americans haven’t saved enough and haven’t tried to estimate retirement expenses.

    Denning’s quick formula: Figure that you’ll spend in retirement between 70 percent and 100 percent of what you do before retirement. Subtract your Social Security benefit. Subtract your pension, if you’ve got one. Say the result is that you need an additional $50,000 a year. Multiply that number by 20 to 25, which begins to approximate the number of years you’ll likely live in retirement. In this case, your nest egg needs to be at least $1 million to maintain your lifestyle. “

    I can’t really agree with some of that.  It all comes down to your individual circumstances. For example, are you going to still be paying a mortgage? If so, you could refinance it, but maybe you really need to work to pay it off. I don’t think it is reasonable to suggest you will need 100% of what you need will working, but hey, that would be great . Right?Liberty in Retirement

    His example expects us to withdraw our nest egg, instead of the “earnings” on our nest egg.  I suppose if you have no family and don’t care about anyone else, that would work.  But a Roth IRA will pay your kids huge and you can leave them a ton of money that way.  If you can, I know you would rather do that.  What Denning doesn’t account for is investing in your “retirement years”.  He is right that you may need 30 years of money in your retirement. But in his example, you would only need about $600,000 invested in good growth stock mutual funds.  That would return you at least 8% , which would be $48,000 per year.  His example has you making zero interest and just spending the principal.  I don’t know how these “experts” make it on that kind of advice.

    Read my post on How Much Will I Need to Retire?  It will explain in simple terms how your investments could work.

    Social Security benefits.  You can begin collecting Social Security at age 62, but your monthly check will at least 25 percent smaller than it would be if you wait. You can see the impact on your benefits at the Social Security Web site, Search for the “retirement age calculator” and then click on “age 62 benefit” for the calculation.

    All this planning will make you so much more comfortable in retirement and will help assure your children don’t have to pay for your retirement.  I’ll be here digging up more relevant information as we go through this planning together.

    As with all my financial or tax advice, I am not advising as a professional and I give no professional legal or tax advice. If you need professional advice, please get that from a CPA or attorney.

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    Leave a comment here so others can read and see what you think.