Smart Uses For Your Tax Refund

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

We all walk into our tax appointments with a glimmer of hope that the outcome will be receiving a nice refund from Uncle Sam, and when that's the case, it feels like we're on cloud 9. But let's not get too ahead of ourselves - we're sure that just like us, you have some ideas for what you'd do with your tax check, but you shouldn't just go out and spend it without thinking.

If you want to get the most benefit out of your tax refund this year, here are a few things we suggest doing with it:

Add it to your retirement fund: Even if you contribute to your employer's 401(k), you may not be saving as much as you need to for retirement. So, take this extra bit of cash and stash it away in a savings account that you have dedicated to this point of your life. 

Save for college: Have a child at home that you'll be sending off to college soon? If you plan to help cover the cost of tuition, put all or some of your tax refund aside so that you have it ready when the time comes.

Invest: If you've always thought about investing but weren't financially able to before, use your tax refund to get started. But before you do, keep in mind that finding the right investments can be tricky, so you should meet with a financial planner like ourselves to determine a strategy that's right for you!

Pay off debt: Did you make a large purchase recently that's been taking some time to pay off? If so, use your tax refund to reduce how much you still owe! For those of you with expenses that have a high interest rate, consider putting your refund towards those payments so that you can help knock down how much interest you accrue moving forward.

Looking for more ideas on what to do with your tax refund this year? This article from Kiplinger has some answers!

At American Investment Planners LLC, our goal is to help our clients achieve financial security and build a legacy that they can pass on. If you have yet to work with a financial planner, please give us a call at (516) 932-5130 to learn how our products and services can be of help to you.