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Your Tax Rebate Decision: Buy Smiles Or Peace Of Mind

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For $599 a day, you can lease a Maserati GranSport Spyder from Tampa Bay Dream Cars.

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By DAVE SIMANOFF | The Tampa Tribune

Published: January 30, 2008

TAMPA - Be an ant or a grasshopper? That's the decision you may face soon.

Right now, politicians are discussing a plan to jump-start the economy by mailing billions of dollars to millions of Americans, hoping to spur a massive spending spree.

However, given the economic climate, many Americans might be wondering whether they might be better off doing something prudent with their stimulus checks.

No matter what you decide, we've got you covered. We asked a handful of local experts for prudent and not-so-prudent ideas for using your stimulus check. We gave our specialists a target of $1,500 – the amount a family of two adults and one child would get under the stimulus proposal put forth by the House of Representatives and the White House.

Here's what they said:

WISE CHOICES

Pay Down Your Debt

If Uncle Sam sends you a check, use the money to whittle down the balance on your credit card statement or put it toward the amount you owe on a home equity loan.

"I've got just four words of advice: Put it toward debt," says financial adviser Jon Wax, CEO of Tampa-based Waller & Wax Advisors.

"People need to use this opportunity to start putting dirt back in the hole before they start spending on other items," he said.

Save For Retirement

Use your stimulus check to establish an Individual Retirement Account.

Gayla Russell, president of Brey & Co. CPAs in Tampa, recommends you check to see whether you qualify for a Roth IRA, even if you already have a retirement account or pension plan created through your employer.

"It's sort of like found money," she says. If you don't need the money right now, "it would be a good time to put it away and forget about it."

Think About Your Health

Your stimulus check can help you deal with health care costs and prepare for unplanned medical emergencies, said Geoffrey Simon, senior vice president for Robert W. Baird & Co. in Tampa.

If you have a company-sponsored health plan with high deductibles or high co-payments, use the money from Uncle Sam to help pay those bills. Also, consider creating a Health Savings Account to set aside money for current and future health care needs.

"It's things like medical emergencies that are the leading cause of bankruptcy in America," Simon says.

Start A Rainy Day Fund

Michael Brill, a financial adviser in Tampa, recommends you tuck the entire stimulus check into a savings account just in case times get tough and you need some extra money to help with the housing bill or the car payment or with groceries.

Brill recommends putting the check into a money market account, which should earn about 3 percent interest these days.

Look To The Future

When your stimulus check arrives, sit down and assess your financial situation. If you see any shortcomings, use the money from Uncle Sam to address them, advises Joel Jankowski, an associate professor of finance at the Sykes College of Business at the University of Tampa.

If you have children, consider establishing a college savings fund. If you're not taking full advantage of your 401(k) plan, raise your payments to it. Evaluate your life and long-term disability insurance plans.

If you need to start spending more money for these things, the stimulus check will help cushion the blow, Jankowski said.

FUN CHOICES

Enjoy The Best Seats In Town

Get a subscription to the Broadway Series at the Tampa Bay Performing Arts Center. The most expensive package, which includes Friday or Saturday night tickets for every show, costs about $500 per person. This year's Broadway Series, already under way, features seven shows, including "Jersey Boys" and "The Lion King." Next year's Broadway Series lineup will be announced soon.

"You can watch movies and see TV, but there's nothing in the world like the experience of live theater," says Paul Bilyeu, the center's director of public relations. "That performance will never happen again in the same way. It's happening for you."

Get Your Motor Running

Trade in your practical car, minivan or SUV for a vehicle that will really turn heads. For $599 a day, you can lease a Maserati GranSport Spyder from Tampa Bay Dream Cars. This two-seater convertible boasts a V8 engine that goes from zero to 60 miles per hour in 5.3 seconds.

"Florida's just wonderful for driving a convertible," says Rodger Cook, Tampa Bay Dream Cars' owner. It's fun to see the reaction from other drivers, to show off the car to friends and to watch valets park the car in a prime spot in front of restaurants.

Eat At Bern's

Sure, you could blow that $1,500 check from the government on 1,500 items from the Dollar Menu at McDonald's.

Instead, head to Bern's Steak House, a world-renowned epicurean landmark that will be much kinder to your taste buds and digestive system.

Bern's is said to have the largest wine selection on the planet. Spokeswoman Heather Sherer-Berkoff said two people can have dinner and have plenty of money left over from their original $1,500 – or they could spend the entire amount.

The popular 9-ounce chateau briand costs $36, and the luxe sampler, with 3-ounce servings of New York strip steak, American Kobe filet and Japanese Wagyu Delmonico, costs $100. A 1-ounce serving of Iranian Osetra caviar costs $200.

See The Big Picture

Looking for some clarity in these uncertain times?

For $1,500, you can afford it – and hang it on the wall.

Mike Stram, president of Home Theater Gallery by Stram Electronics in Tampa, says some 42-inch, high-definition flat-panel television sets sell for $1,500 or less.

"You can see the blades of grass on the football field," he says. "You don't really realize how bad the TV you have now is until you get a new high-definition one."

Get Some R&R

To make the most of your $1,500 incentive check, treat the family to a first-class vacation at the Loews Don CeSar Beach Resort in St. Pete Beach. By staying close to home, you'll spend less money on traveling and have more time to spend on the beach – and being pampered.

"This is a very good getaway, and you really do feel like you're on a tropical vacation," said marketing director Chris Bracken.

Bracken said $1,500 would cover a three-night stay, dinners in all three of the hotel's restaurants and an 80-minute couples' massage, with enough money left over for plenty of treats at Uncle Andy's Ice Cream Parlor.

Reporter Dave Simanoff can be reached at (813) 259-7762 or dsimanoff@tampatrib.com.

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