How are you spending your $1,200

Intern in IB-M&A

For those of you who qualify for the $1,200 stimulus check, what are you doing with your money?
I'm thinking about getting a dual monitor set-up to use my senior year and for work eventually. But want to hear other's ideas.

EDIT: To qualify for the check you need to meet these criteria.
1) not be listed as a dependent on your parent's tax filing and 2) you have filed your own taxes for 2019 and 3) you cannot have made over $99K

Comments (51)

Mar 26, 2020
Intern in IB-M&A:

How Are You Spending Your $1,200

There are really only 3 choices:
a) Models and bottles
b) Hookers and blow
c) Boats 'n hoes

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

    • 5
Mar 26, 2020

...not if you qualify to get this check...

    • 2
Mar 27, 2020

I'm afraid they don't work these days.

Mar 26, 2020

Can we get it as college students? Have been hearing a lot of different stuff.

  • Intern in IB-M&A
Mar 26, 2020

It depends on if your parents have claimed you as a dependent on their tax filing.
If you are not claimed as a dependent, and you have filed your own taxes, you are eligible

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Funniest
Mar 26, 2020

Etruscan boar vessel 600-500 BC

    • 14
Mar 27, 2020

I'm more of a ceremonial fungal mask guy.

ceremonial fungal mask

Mar 29, 2020

he do be lookin kinda ceremonial doe

    • 1
Mar 26, 2020

Who here is getting $1,200?

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  • Intern in IB-M&A
Mar 26, 2020

mainly directed at college students who weren't listed as depedents. I guess it is the minority on here haha

Mar 26, 2020

Not sure if it's a good or bad thing that I am... I'm gonna go with bad.

Mar 26, 2020

My point exactly...

Mar 26, 2020

Can someone provide some color on who's getting these checks? I see comments on instagram from people who work 30 hours/week at Macy's thinking they're getting a full $1200... is that true?

And what if your base salary is below $99,000 but total pay is above? Honestly more confused than I was a few days ago

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Mar 26, 2020
stev0026:

Can someone provide some color on who's getting these checks? I see comments on instagram from people who work 30 hours/week at Macy's thinking they're getting a full $1200... is that true?

And what if your base salary is below $99,000 but total pay is above? Honestly more confused than I was a few days ago

It's pretty simple. This process uses a person's 2019 (if not available, 2018) tax filing, which means you have had to already filed to speed up the process. When you file taxes, your estimated obligation (benefit) from your witholding is based off your AGI. You can check what your AGI is on your tax return once it's been completed. Whatever that AGI is will be used against the threshold for persons qualifying. Some on this board won't qualify for anything as many earn well over $99K in base alone.

Since base salaries for most junior positions, including IB, start below $99k, my assumption is, a lot could potentially qualify for something if they were not paid a bonus that they were required to report in their tax filing which would then bump their AGI above the threshold. For those with an AGI up to $99k, but above $75k, they will receive a check that is $5 less for each additional $100 above $75k.

If you earned $99k, then you made $24k over $75k, which gives you a check of $1200 - 24000/100 = 240 * 5 = $0.

    • 4
Mar 26, 2020

Helpful explanation, thank you

    • 1
Mar 26, 2020

The government could have implemented this a lot faster without means testing the check. Just send one to every tax filer and call it a day, Andrew Yang style.

  • Intern in IB-M&A
Mar 26, 2020

Updated the thread to reflect the criteria. It failed to update the first time so hopefully I didnt accidentally update it twice.

Most Helpful
Mar 26, 2020

Ordering as much food from my local restaurants as possible. They need the money way more than me just spending it on stupid stuff.

    • 8
Mar 26, 2020

If times like these are any indication, then perhaps putting that money towards a savings account may be the smartest move. Although credible sources are hard to find in this regard, a significant portion of Americans cannot withstand an unexpected charge of $1000 dollars or more, i.e. they don't have that much money saved. In this way, setting yourself with, an albeit, modest, nest-egg would certainly be a virtuous move in the longer term to help you withstand any unexpected costs you may incur (health-related, a table at your favorite club, or otherwise).

Barclays and Goldman Sachs offer relatively high-yield savings accounts (1.6-1.7%), among others, that you can use to keep your purchasing power on par with inflation. If you're comfortable with taking on more risk and reaching for some extra yield, you can always open a Roth IRA or a Traditional IRA based on your income level (I'd choose Roth if I were you, as a college student) and invest in traditional, low expense ratio index or mutual funds. Depending on your broker, you can opt for the classics (SPY, the S&P 500 index fund) or others like (FXAIX, a mutual fund offered by Fidelity). I would not advise with going for individual stocks or options, really, ever. As much as r/wallstreetbets may seem like it's a great idea, for every winner there are 100 losers, or more.

If you are dead set on spending it, then I'd reach for something that, for you, would have the greatest marginal value in the long-run. There is nothing better than a well-made suit and pair of shoes that could help you look the part in any eventual interview. Perhaps a tie. Perhaps all three. Even if you have a suit, the utility of a 2nd or 3rd or 4th, all in different styles, cannot be overstated. I would not spend it on any monitors, as, if you're to be a senior in college presumably, then whatever job in finance you have, or end up taking, will not likely be a job you do too frequently from home, if at all, and you won't get up getting the long term gain from the monitors than you thought you would have. And, why get monitors for your job when the monitors you need at your job will already be provided for you? The marginal benefit from having those at work, I guarantee you, will be less than what you'll see if you spend it on something that, when you sit down and think about it, will be a good purchase providing utility on a more permanent basis.

Now the purpose of this money coming through is for you to spend it. But everyone is going to spend it on something useless. Several expensive dinners at various places, that nice bottle of alcohol that they've been wanting, extra, expensive, useless accessories. But for you, this is a good opportunity to help yourself become more financially stable and/or buy yourself a good that provides you with a significant benefit over the longer term. I know that I'll be putting it into a brokerage account and will let that money grow.

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Mar 26, 2020

Thank you lord and savior, John Bogle.

In all seriousness though, I think this is good advice for most people, though maybe not people on this forum specifically who are already well have and have sufficient savings (if you work in finance I would hope you do). Another thing might be a good idea is putting it into a 529 plan if you want to go to grad school in the next couple years (or starting a college fund for your kids), or enrolling in an online class/program to learn some new skills that would be beneficial to know in the long run.

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Mar 26, 2020

Except that most high-yield savings accounts have minimum balances many-fold that $1,200

Array

Mar 26, 2020
KREBSCYCLEOMG:

Except that most high-yield savings accounts have minimum balances many-fold that $1,200

Wrong.

Array

  • Prospect in 
Mar 27, 2020

Nerd!

Mar 27, 2020

Great points. Also, you are the first person in the history of the world to write this:

rotundanalyst:

As much as r/wallstreetbets may seem like it's a great idea

  • Analyst 1 in S&T - Other
Mar 27, 2020

People like you are the problem. Support your country and buy random shit to save the economy.

Mar 28, 2020

I was thinking of spending it on enough silly putty to fill a swimming pool, but I now realize that I may gain more utility from some crocodile skin slippers that I could wear to an interview. Thank you for setting me straight, sir

    • 2
Apr 1, 2020

I like subtle crocodile skin like these below. They are a bit over budget though.

$15,650.00

https://encrypted-tbn1.gstatic.com/shopping?q=tbn:ANd9GcTbWaQGZDhJF39NHd2V4rhBhN828KIyFBKHQUgXq7KIQwjmrDQA8TZD_IptOyO-Rb7P29WRkiTM_fKHDucMUIXW7VOO_HhUHQsrZmnEB8wKJARzdWWl9Ubr&usqp=CAE
https://www.lyst.com/shoes/tom-ford-edgar-crocodil...

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

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Mar 26, 2020

Man, I know so many people who will technically qualify due to their working shitty easy jobs and not having trust funds despite the fact that they have their parents bankrolling their lifestyles (rent paid, food/ shopping charged to an extra line on dad's card, etc.)

Array

Mar 26, 2020

Jeffries associates are as happy as a kid on Christmas!

Array

  • Developer in RE - Res
Mar 29, 2020

I hear their CFO position is open...too soon?

    • 4
Mar 30, 2020

Kind of surprised Rich Handler didn't post about it on his insta, but that's probably out of respect.

Mar 26, 2020

Nothin because I'm not getting it lol

Mar 27, 2020

CRYSTAL METH

Mar 27, 2020

Short the S&P

  • Analyst 1 in IB - Gen
Mar 27, 2020

Do people who started work July 2019 qualify because most probably didn't make $99k up to filing their taxes? Also, is it if your parents most recently filed you as dependent (FY2019)?

  • Intern in IB-M&A
Mar 27, 2020

If on your FY2019 tax filing you did not report more than $98k in income, you should be eligible.
And same deal regarding your parents, if you weren't claimed as a dependent in FY2019 you're all set.

    • 1
Mar 27, 2020

Straight into my RothIRA!

Mar 27, 2020

Rolling the whole amount into Bill.com stock. Picking high growth cloud plays is the move as we transfer to the digital economy.

  • Intern in IB-M&A
Mar 27, 2020

I'm interested please tell more

Mar 27, 2020

Hi growth Saas firms that automate business processes (think Service Now, Workday, Sales Force) are going to benefit from this whole Coronavirus thing in the long term. Just an opinion.

Mar 28, 2020

I will be shorting the VIX

Mar 29, 2020

No check for me :( thats ok I'll post all the stuff ive been meaning to on craigslist from the garage and take someone else's check since it will likely be burning a hole in their pocket anyway

Mar 30, 2020
Intern in IB-M&A:

How Are You Spending Your $1,200

Also, $1,200 will get you a picture with a baby tiger. Doc says he's not closing for the corona virus.

https://gossipgist.com/uploads/28469/kody-antle-docantle.jpg

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Mar 31, 2020

14 lb Japanese A5 Wagyu Rib Roast on sale for only $966 ($69/lb., regular price $1,342) from Kagoshima. Free shipping. The rest would be spent on booze.

Rib Roast

Array

Mar 31, 2020
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