5 Moves to Make With Your Tax Refund

Receiving a nice, fat tax refund check can provoke quite a bit of temptation. You might consider rushing off on a dream vacation, or at least purchasing an upgraded home entertainment system. But if you view your tax refund as a chance to get ahead and change your circumstances, it can make a significant difference to your long term financial plan.

Pay off credit card debt. High interest debts are the worst ones to carry long-term, because the card company charges you interest upon interest! Plus, carrying too much debt can harm your credit score and make it difficult to get a mortgage or car loan with good terms. Pay off high interest debts when you get the chance, and you will build toward a brighter future.

Use it as a down payment on a new vehicle. With gas prices soaring, now might be the time to upgrade into a new vehicle with better gas mileage. Your tax refund could provide the perfect down payment.

Invest in necessary repairs on your home. Make repairs as the need presents itself, and you can prevent worse problems down the road. Or, install weatherproofing, new windows, and other measures that can save you money on future electric bills – a true investment in your own budget!

Build an emergency fund. Whether you already have one, or need to start one, an emergency fund can help you cover unexpected expenses. This means you avoid the need for a loan or racking up credit card debt, making a serious difference in your future debt load. Stash that refund check in a savings account.

Invest in yourself. If you’re not carrying high interest debt, in many cases the best thing to do is sock away extra cash in your retirement fund. Because interest compounds over the years, that contribution will be worth much more when you retire!

It can be hard to know the best way to invest a windfall when you receive one. Before making any big decisions, call us to schedule an appointment. We will discuss your options and help you decide upon the most beneficial way to use extra cash, to set yourself up for a more stable future.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

5 Moves to Make With Your Tax Refund

5 Moves to Make With Your Tax Refund

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About the Author: Mark Roberts