Chances are, you’ve benefitted from the Tax Cuts and Jobs Act. Not only will 90 percent of Americans see greater take-home pay, but job creators are using their tax savings to reward employees.
To date, more than 435 U.S. employers have publicly announced pay raises, 401(k) increases, and bonuses because of federal tax reform, benefitting over four million workers.
If you’re one of them, be smart about your tax reform bonus. Forbes contributor John Girouard has more:
One thing we know for sure is that between temporary corporate generosity, and temporary tax breaks, now more than ever is the time to be smart with the windfall. A recent Federal Reserve study found that 50 percent of those surveyed had less than $400 in their savings accounts. Another survey by personal finance website Bankrate.com found that 39 percent of Americans have less than $1,000 in an emergency fund.
At a time when, according to the Bureau of Economic Analysis, the American household savings rate stands at 2.4 percent of disposable income, the lowest rate in over a decade, it’s time to take that bonus or tax break and save it, not spend it. Recent history has shown us that periods of low savings precede market crashes (think back to right before the dot-com bubble and the housing crisis).
It’s time to be smart. Remember, all this new-found money is temporary, save it wisely.
I’m retired: I didn’t get one
I’m retired too. I got one.
You would have if you were invested in the Dow which is UP over 33% since Election Day.
How can something that is already mine be a ‘windfall’ or ‘bonus’?
The money is already mine. The government has just decided (for now) not to confiscate it.
Bonuses and windfalls are something aďded to you that you do not already own.
We are so used to high taxes that when taxes are lowered we think it is a windfall. Sort of like tax return money. It’s all ours…..just the government saying “Ooops we charged you to much so here is a refund….” it was all ours in the first place.
A windfall is something like an inheiritance and a bonus is when your boss shows up at your desk and gives you a $500 check and says ‘good job’….
Just sayin…
Hey William; ever get a gift from you spouse, child etc? Maybe your money but but the gift is still awesome and could have been spent elsewhere ie illegal alien benefits… Just sayin…
I went and bought the WHOLE CAKE, instead of just crumbs !!!!
low savings many times is caused form low wages [or just enuf to get by on]….. savings is a foreign concept to many folks in this bracket…… extra money may buy new tires for the car, or bring a late payment situation up to date, doctor/dentist bills….. and the list goes on. nice to have extra cash to save, but, not with our minimum wage laws…… the folks who write these articles are not minimum wage ….so, not good advice
I’m going to take Nancy Peelosi’s “CRUMBS” and put them in the bank!
What bonus?