The biggest question on most American minds at the moment, aside from when they'll be able to go back outside without worry, is when their U.S. stimulus check will arrive. Most are anxiously awaiting the $1,200 aid check that is meant to ease the burden and jobless claims affecting so many during the pandemic.
But why stop at $1,200? What if you could turn your check into more than just a small injection of cash to your bank account? Sean Williams at The Motley Fool wants many to know that they can turn their stimulus check into $10,000 a lot easier than they think. As the outlet lays out, the idea is that not everybody needs a cash infusion immediately.
This is a luxury for those who can afford to spend their check on items that aren't groceries and essentials. Does this leave out certain classes? Definitely. But if you have the opportunity, the stock market is a gamble to take with the check.
Despite its volatility, Williams writes that the market typically returns 7% annually, letting investors see their money double once a decade. As he lays out, if someone were to invest their $1,200 stimulus check and leave it in to grow over three decades, you could see it double three times. This would bring it close to $10,000 and far more than any government check will be.
Now the specifics are a little more daunting if you're not wise on the stock market and picking companies to invest in. Williams provides two potential stocks to purchase with the stimulus money, indicating that they are healthy in light of the pandemic and should return the 7% or higher. The first is Intuitive Surgical, a little pricy on the surface level but worth it if the price rises after purchase. They are the company behind the Da Vinci surgical systems, which are growing alongside your potential investment if you choose this route.
The other laid out by the outlet is Mastercard or other credit card service providers give "double-digit growth potential" despite a decline in purchasing volume during the current climate. Williams indicates that he owns both of these stocks himself, adding some depth to the claims of reliable growth over time.
While this might be a lofty task to undertake, it falls in line with other recommendations on how to spend the money. Using it to make more money doesn't seem right at first, but it could be helpful in the case of another incident later this year or the next until a vaccine is provided. If anything, it is a good idea to have in your arsenal.