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Good news for employees: Even though 2020 and 2021 have been distinctly different from years past, full of economic strife due to the global pandemic, more employers are opting to give year-end bonuses. So if you’re one of the fortunate workers who’s receiving one, you can rest a little easier knowing there’s more money going into your bank account.
No matter if your end-of-year bonus is $200 or $20,000, you don’t want to squander it — especially in these uncertain times.
Here are five ways you should — and shouldn’t — spend your bonus this year to ensure you get the most out of your money.
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Best: Invest In a Financial Planner
A year-end bonus could provide the funds you need to pay for professional financial advice.
A CFP can help you create a financial plan. If you need someone to do a one-time review of your finances to ensure you’re on the right track, look for a planner who charges by the hour — such as a member of the Garrett Planning Network. If you want someone to guide you for years, consider a planner who charges a fee based on a percentage of your assets rather than an hourly rate. Find planners through NAPFA, the website for the National Association of Personal Financial Advisors.
Meet with a few financial planners to determine which one is right for you and see if they have a clean record by searching the SEC’s website, which contains information about business operations. You also can check records through the Financial Industry Regulatory Authority’s BrokerCheck…….