If there is a positive element to be found in settling up with the government at tax time, it’s that most Americans will be due a refund. It’s an annual windfall for many, and there’s a very real temptation to spend it on wants rather than needs. But before you pull the trigger on that exotic vacation, take a breath, and consider the benefits of longer term thinking.
- Pay down your mortgage or save to buy a home instead of renting
- Add to your retirement savings in an IRA
- Pay down credit card debt that costs more than what you’re earning in a savings account
- Consider investments like CDs, money market accounts or mutual funds
- Sock away your refund for a child’s education now, as a hedge against escalating college costs in the future
- Top off your emergency savings fund to avoid using costly credit to finance needed high ticket items or unforeseen expenses in the future
Unsure of how to best utilize your tax refund? Contact Lake Michigan Investment Services and speak to one of our representatives for a free, no obligation financial review.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal.