What to Do With Your Year-End Bonus

Wondering what to do with your big year-end bonus? Here are my "Top Ten" ideas. If you've already spent (actually or virtually) your bonus, then save this for next year.

1. Fully fund your 401(k) or other employer tax-deferred retirement plan.
2. Fully fund a traditional or Roth IRA.
3. Fund a tax-favored educational plan for your child or grandchild.
4. Plunk the money into a no-load, low expense, index fund or other investment
appropriate for your long-term wealth building plans. Then, forget about it.
5. Start or add to your emergency savings fund – 3-6 months of living expenses
6. Pay down or eliminate high interest rate debt.
7. Increase your life insurance and/or disability insurance if you’re underinsured.
8. Fund a health savings account (HSA).
9. Give the money to your kids or charity – they deserve it.
10. Go on a vacation – you deserve it!