5 Smart Ways You Should Invest an Extra Social Security Check

Core Insights - Social Security recipients may receive an "extra" check in a month due to calendar adjustments or cost of living adjustments (COLA) [1] Investment Strategies - Investing the extra Social Security check can help grow funds if not needed for immediate expenses [2] - Opening a Self-Directed IRA allows diversification into alternative assets like real estate and precious metals, but requires ongoing contributions for significant growth [3] - Adding the extra check to a high-yield savings account (HYSA) is recommended to backfill emergency funds, especially for retirees with low liquid reserves [4][5] - The extra check should ideally cover three months of baseline expenses, estimated between $6,000 to $9,000, before considering market exposure [5] - Contributing to a Health Savings Account (HSA) is advisable for those with a high-deductible health plan, providing a way to finance healthcare costs before Medicare eligibility [6] - Paying down high-interest debt, particularly credit card debt with rates between 20% and 29%, can save significant amounts of money [7]