Will autoworkers save or spend bonus checks_

“It was a wake-up call for GM,” Incrocci said. How to make a good deck in hearthstone “We have changed immensely, and we are doing something quite frankly that a lot of people didn’t expect. Softball australia We’re on maximum overtime now.”

Gabe Ehrlich, director of the University of Michigan’s research seminar in quantitative economics, said a ballpark estimate is that the profit-sharing payments made this year, including GM’s, will total about $529 million for autoworkers in Michigan.

As a result, overall personal income in Michigan is expected to increase by $588 million or more than a tenth of a percentage point — 0.13% — in 2017, including the bonuses and improved business that will result.

Retailers, furniture stores, car dealers, restaurants and others in communities where workers live could see a modest boost if consumers spend much of their bonus cash.

The U-M index of consumer sentiment rose in January to its highest level since 2004, indicating that individuals nationwide have a more optimistic outlook for the economy and job growth.

How much one saves — or spends — could be influenced by how optimistic one is about the future and the potential for positive economic growth. Small balcony garden ideas pictures Age and overall financial health will play into the picture, too.

Incrocci — who voted for President Donald Trump and runs his own business on the side called Envision Landscape Design — is upbeat about the potential for prosperity. Landscaping ideas around trees He’s hopeful that a loosening up on some regulations will help U.S. Basketball olympics usa manufacturers, including automakers.

Incrocci plans to spend $6,000 or $7,000 out of his bonus for new carpeting for his home in Grand Blanc. Backyard baseball download He’s going to save some toward retirement — and set aside money for a trip to California around the Christmas holidays to see his family there.

One UAW worker from the GM Detroit-Hamtramck Assembly Plant who declined to give his name joked that he’ll do whatever his wife wants to do with the money, but they’ll likely save some of it. Little league baseball age chart 2016 The worker, who is in his 50s, said other coworkers are talking about taking vacations, as well as paying some bills.

Dan Marley, 58, who works at the Fiat Chrysler Mack Avenue Engine plant in Detroit, sees the profit-sharing check as an opportunity to help his 23-year-old daughter buy a new car, if she saves some money on her own. El patio mcallen Marley, who lives in Clinton Township, also wants to pay off a few bills and take his soon-to-be 5-year-old grandson to the Kalahari Water Park in Ohio.

More than 56,000 hourly UAW workers at Ford nationwide are set to receive profit-sharing checks; Fiat Chrysler said about 40,000 UAW-represented hourly and salaried employees will receive the checks.

Many UAW-represented workers are looking at average bonuses ranging from $5,000 at Fiat Chrysler Automobiles to $9,000 at Ford, both before taxes. How to build a fence in minecraft Last year, the profit-sharing checks averaged $4,000 at Fiat Chrysler and $9,300 at Ford. Knuckleball pitch The average pretax amount last year at GM was $11,000.

Autoworkers have been seeing some fairly sizable checks in many cases since 2012. Sprinkler system diagram Lately, the checks are more in line with some of the eye-popping $8,000 payouts that Ford and Chrysler had in 1999, according to data from the Center for Automotive Research.

In general, Ford and GM pay about $1,000 in bonus money to UAW workers for each $1 billion in pretax North American profit. How to pitch faster The formula at Fiat Chrysler is slightly different, based on profit margins. Hotels in dripping springs texas The Fiat Chrysler formula is $800 for every 1% of North American profit margin.

Right now, some Fiat Chrysler workers say they’re unclear on how much their individual checks will be because the checks generally are based on hours worked and the dollar amount of the checks received will be after taxes.

Some employees talk about using some money toward their children’s college education or paying down their grown children’s bills, said David Kudla, CEO for Mainstay Capital Management based in Grand Blanc.

Robert A. Landscape photos Dye, chief economist for Comerica, said many families are likely to “spend a little more at area stores, pay off some debt, save some of the bonus money and put some of the money into home repairs and upgrades.”

LaBrecque advises three buckets for auto bonuses — tackling credit debt, putting savings in the 401(k) and leaving something for splurging on a trip or setting aside money for a grandchild’s college education.

If you’re paying 15% or 20% or more a year on credit cards, you’d have a hard time arguing that you can be guaranteed to make that kind of money by investing it.

On a credit card with a 20% annual rate, you’d save $420 in interest in the first year if you set aside $2,100 to pay down credit card debt. High pitch eric periscope You’d save $1,300 to $2,200 in interest overall if you’d only been making minimal payments, depending on what you pay each month. Spring training schedule arizona And only paying a small amount would mean it would take several years to pay off the card.

When it comes to the second bucket, or saving for retirement, employees in the auto industry can opt to put profit-sharing money directly into their retirement savings plans at work.

Automakers note that in simplest terms, though, that it is not possible to defer 100% of profit-sharing into a 401(k). Lanscaping Social Security, Medicare and union dues are all taken off the top.

Salaried employees in the auto industry receive performance-related awards, which are not the same as the UAW-related profit-sharing checks, and Kudla said salaried workers need to watch how they contribute to retirement savings.

Dump way too much in the 401(k) out of the bonus, if you’re a salaried employee, and you could lose out on some matching money for 401(k) contributions from the company later in the year, he said.

LaBreque said low-cost index funds, like a Standard & Poor’s 500 index fund. Driveway He said small and midsize companies should do well under an improved economy, especially with a refocus on American content.

Very few people, of course, need advice on how to go on a spending spree with extra cash. Fastest softball pitcher in the world But some might also want to consider a fourth bucket, such as setting aside a few hundred dollars for an emergency fund to cover unexpected bills in the coming year.

Anyone who lives in Michigan tends to realize how wild the rides can be in the auto industry. Brick fence designs Back in 2009, two automakers — General Motors and Chrysler — went through the bankruptcy process. Little league baseball field dimensions And then in 2016, the auto industry saw record North American car and truck sales.