An annual bonus is usually based on overall company performance. This means you may get a large or small bonus (or no bonus at all) depending on how successful your organization or specific department was that year, as well as how big a part of that success you were. This can also be considered profit sharing. Here are nine ways to use a bonus to extend its benefits into the new year and beyond. Max out your retirement accounts. ... Invest in an index fund. ... Check in on your emergency fund. ... Contribute to a 529 plan. ... Move that bonus into a high-yield account quickly. ... Save for your next vacation.
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