The Do's and Don'ts of a Tax Refund
Finally tax season is over and we all survived! If you are receiving a refund, you should know how much to expect. You may be contemplating "what should I do with the money?" Thoughts such as those pair of shoes you saw at the mall last week or finally turning your living room into an at-home theatre may be coming to mind, but is that the best way to spend the money? Probably not. That refund is the perfect opportunity to invest the money wisely instead of wasting it on a lavish wardrobe. Here are a few tips on what you should and should not be doing with that check:
Create a Nest Egg and tuck the money in a high yield savings account.
Eliminate debt - Payoff whatever debt has the highest interest.
Pay an extra mortgage payment.
Start saving for retirement by opening up an IRA or start saving for your children's college fund by opening up a 529 plan.
Open a mutual/index fund or ETF.
Don't spend it on luxurious items.
Don't put it into a checking account, you won't earn any money in interest.
Don't loan it to someone because you may never see it again.
This money only comes once a year, use it wisely!
--Ryan Thompson, Walls Financial Group