Here's what UAW members can do with their money, according to a financial adviser

GRAND BLANC (WJRT) (10/18/19) - Starting Saturday, 49,000 General Motors union workers across the nation will start voting on a tentative four-year contract.

The process will last until next Friday.

Workers will not return to factories before then, but that doesn't mean they can't start asking questions about finances.

The new four-year contract would give workers a mix of pay raises, lump sum payments, and an $11,000 signing bonus.

After five weeks of striking, David Kudla says while it'll be tempting for workers to spend the bonus, he has another idea.

"There's probably been some bills or some expenses that have stacked up, so that signing bonus will help in going towards making up some of that lost pay over that time frame, so that does come in handy in that regard," Kudla said. Kudla is the CEO & Chief Investment Strategist at Mainstay Capital Management.

Kudla says with cash management, it's wise to first pay down on high-interest debt like a credit card or a loan as opposed to low-interest debt like a mortgage. After that, he says take some of that towards investments.

"It doesn't hurt to maybe even take some of that, a little bit of it, and enjoy it. Enjoy the win. When this deal gets signed next week, which we think it will. We think it'll be ratified. Go out to dinner, enjoy, and celebrate," Kudla said.

In addition, members are getting a three percent pay increase. One of the things that Kudla thinks is a good idea is to consider their retirement fund.

"If they haven't maxed out already the pre-tax savings amount, maybe with that three percent, add one or two percent of that to their retirement saving plan account to increase their retirement savings. It's an opportunity to do that," Kudla said.

Kudla says this is where you want to sit down with a financial professional and come up with a comprehensive financial plan to see where you are versus your overall retirement plan.



 
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