Stimulus check update: Here's how you could turn your $1,400 payment into $100K

TRADING UP your stimulus money is reportedly a lucrative investment technique to turn your $1,400 check into $100,000 over the long run. 

If you have already set up an emergency fund and paid your bills, you could now invest your stimulus in Vanguard Exchange-Traded Fund (ETFs) to establish long-term wealth, according to Fox Business.

There are three types of Vanguard ETFs that you can put your stimulus money into for long-term returns, including Vanguard S&P 500 ETF which contains over 500 stocks from some of the major public companies in the U.S.

It is considered a safe investment because it represents the stock market as a whole, according to Fox Business. The Vanguard S&P 500 ETF has reportedly earned an annual average 15% rate of return, but you could expect an average return of 10%. 

You could reach $100,000 in total savings if you invest $125 in Vanguard S&P 500 ETF on a monthly basis for 20 years.

Vanguard Growth is another type of ETF that contains over 250 stocks that are expected to generate above-average returns, according to Fox Business.

This fund is riskier, however, because high-growth stocks can be more volatile than well-formed companies. 

But your risk is limited because Vanguard Growth ETF includes stable companies such as Apple, Amazon, Microsoft, and Facebook. 

You could expect an 11% annual return if you invest a monthly $115 over 20 years, leading to $100,000 in the long run.

Vanguard Information Technology ETF is also a good avenue to invest your stimulus money. 

The fund includes around 350 stocks of information technology companies and is deemed riskier because all those stocks are from the same sector. 

Despite the lack of diversity, this ETF is predicted to generate higher returns because tech is a booming industry, according to Fox Business.

You could expect to receive $100,000 if you invest $90 per month over 20 years with a 13% average annual return.

Around 130 million $1,400 checks – worth around $335billion – were sent out as of April 1 per the third stimulus round as more continue to roll out, the IRS said earlier this month.

There are high hopes for a fourth stimulus check after a poll revealed that the "majority of Americans want recurring $2,000 Covid-19 payments."

The push for a fourth stimulus check and additional recurring payments is being backed by up to 74 lawmakers.

A fourth stimulus package of $1,400 could bring 7.2 million people out of poverty, according to an analysis published last month by the Tax Policy Center at the Urban Institute & Brookings Institution.

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