Here’s how compound interest can turn your stimulus check into a fortune

SourceCNBC
SectorFinancial Markets
CountryMiddle east

Stimulus checks printed at the Philadelphia Financial Center in Philadelphia, Pennsylvania.Jeff Fusco | Getty ImagesThe latest round of $600 stimulus checks are a welcome reprieve for the millions of Americans financially impacted by the Covid-19 crisis. For those who have lost income or benefits in the 10 months since Covid first washed ashore, the checks offer a chance to catch-up financially. For more fortunate Americans – those who are still employed, or whose incomes haven't declined – these checks can offer a golden opportunity to invest. And if larger checks – such as the $2,000 backed by the Biden Administration – are approved, then that opportunity is greater still.

Thanks to the magic of compound interest, these relatively modest sums can become something far bigger. We do the math to show you how.A Family of FourFor a typical family of four with an adjusted gross income up to $150,000, the $600 per person checks will total $2,400. While it may be tempting to spend or simpy save this money, consider that average stock market returns hover in the vicinity of 10% annually, offering an opportunity to rapidly grow that money well beyond the 1% or less in interest offered by ...read more...