3 Ways to Invest Your $1,400 Stimulus Check

Written by Mike Munno
Posted March 18, 2021

The American Rescue Plan Act of 2021 was signed by President Biden on March 11 and the peasants rejoiced.

The $1.9 trillion stimulus package will give the majority of Americans a $1,400 check, depending on your income level. 

If you’re like me, you’re looking forward to the potential of turning that $1,400 check into $10,000 or more.

I always have a list of stocks that I’m watching, and in the last couple years I’ve started to keep an eye on some cryptocurrencies as well.

One of my earliest financial mentors taught me that one of the ways you become rich is that you figure out how to make your money work for you.

Simply put, the stock market is one of the best platforms to make your money work for you.

The thrill of finding a stock, pulling the trigger on it, and being rewarded for your hard work is a truly unique experience.

But so is watching a stock or investment that you passed on go to the moon…

Yes, investing truly is a love/hate relationship, but it can also be profitable when done correctly.

Which is what I want to talk to you about today…

Making Your Stimulus Check Work for You

As stimulus checks begin to hit bank accounts, we should see the market continue to rise. 

On Monday, March 15, the Dow and S&P 500 both closed at record highs, and this could be just the beginning. 

As the country continues to open up more, and as more and more of that $1.9 trillion rolls out, we are bound to see it reflected in the market. 

Not to mention summer is right around the corner and people generally spend more during those months. 

So where should you invest your stimulus check and take advantage of rising markets? 

Stimulus Check Play #1

The first and obvious choice for what to do with your stimulus money is to find a company you believe in and buy some shares. 

Now, depending on your risk tolerance, you may want to stick with an ETF that mirrors the S&P 500... or you may want to invest in a stock that could possibly double your money in a short period of time. 

I’ll give you two plays to choose from based on how risky you’re feeling.

The conservative and safe play is the SPDR Portfolio S&P 500 High Dividend ETF (NYSEArca: SPYD), which currently trades around $40 per share. It's a good way to put your money into the market without having too much fear of losing it all overnight.

oc image 1 18 mar 21

SPYD has made up for the dip it suffered during the coronavirus crash in March 2020 and is up 51% in the last 12 months. 

If the market continues to climb higher, this ETF will too. 

Now, if you want to invest in a stock that could double or triple your money in a much shorter time frame, you may want to consider Roblox Corp. (NYSE: RBLX)

Roblox is an American video game development company based out of California whose shares trade for around $75. 

If you’re interested in a little bit more reward for risk, then this company could be for you.

Stimulus Check Play #2

I’ll make this short and sweet...

Bitcoin.

Love it or hate it, understand it or not, Bitcoin has massive potential to make you money.

That being said, it is considered a "riskier" play. But I’d be lying if I said it didn’t sting knowing that had I got into Bitcoin a little bit earlier, my gains would be MUCH more substantial. 

It currently trades around $50,000–$55,000 per coin, but you don’t need to purchase a full coin. Apps like Coinbase allow you to purchase fractions of coins, which could certainly help turn that $1,400 check into something a little more life-changing. 

I think we’ll see some more volatility out of Bitcoin over the next few months, but I really wouldn’t be surprised if it were trading for $100,000 by the end of the year.

Once it hits $100,000, though, I would expect some massive sell-offs.

I mean, I’ll let the chart speak for itself…

oc image 2 18 mar 21

Buy the recent dip and hold until $100,000 if you feel so inclined.

But be warned: Cryptocurrencies are not for the faint of heart.

Stimulus Check Play #3

As I mentioned before, I’m always watching a list of stocks, cryptocurrencies, private placements — all sorts of ways to make my money work for me.

One of the greatest investments I ever made was joining the Outsider Club family.

Getting to bounce ideas off the group of professionals that are around the office has been more profitable than I could have ever imagined.

Some of the greatest investments I’ve been turned on to have come from our everyday office banter.

That’s one of the best parts of the job. And an even more rewarding part of that job is sharing what we chat about and discover with you, our readers.

If you want to be a little bit closer part of the family, then I highly suggest you check out some of the premium letters that the Outsider Club family has to offer.

This team is truly one of a kind.

Jimmy Mengel has a special knack for finding emerging trends, and not only that, but his ability to spot the winners and losers before the shifts take place is second to none. 

He’s recently discovered the next revolution in technology and the one company that could ruin Silicon Valley. If you have some time, you might want to listen to what he has to say on the subject.

Then there is Jason Simpkins, who has been pounding the drums on the facial recognition technology that's being rolled out more and more every day. He was in front of this trend from the very beginning, and there’s still more to come.

He talks all about that right here.

If you’re interested in rare earths and gold, I highly recommend giving Luke Burgess a look. 

He was telling me the other day about a massive mine that was recently tested in North America, and it could be a game-changer for one tiny gold miner. 

I’ll let him give you those details here.

If you’re looking for dead-on financial analysis and market trends, Adam English is your go-to guy. 

His ability to break down complex market scenarios and trends in a succinct and easy-to-understand manner is unmatched. 

You can see what I mean here.

So if you’re wondering what to do with your $1,400 stimulus check, I highly recommend viewing one of those guys' premium publications and taking the next step toward becoming a part of the family and furthering your investing prowess.

It could pay off much more than any of the previously mentioned plays, and you’ll never know if you don’t give it a try. 

Good luck in your future investments, and I hope you think more about taking that next step. 

To Everlasting Wealth,

Mike Munno
Contributing Editor, Outsider Club

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