The Uncle Sam Bonus Plan
So far this year, income tax refunds are averaging $2,650--up about $100 from last year. Among the suggestions about what to do with that money from a recent MSNBC article: Put the money in an IRA, pay down debt, give some to charity, invest in yourself by taking a class, pay to have a will or more comprehensive estate plan created, use a portion of it to treat yourself to something you've been wanting, and change your withholding so you don't overpay on your taxes again this year.
Matt's View
Giving to a good cause is a great use of at least a portion of a tax refund. Which organizations are addressing issues that you care about? One favorite of our family is Compassion International , which helps impoverished children. As for other ideas for your refund, if you don't have an emergency fund, open a money market fund with a brokerage house such as Fidelity or Vanguard. Paying down debt is my next choice. And one last idea: If you have children and haven't started saving for their college expenses, consider putting some of your refund money in a 529 plan. Savingforcollege.com is a good resource for finding the right plan.
This article filed in: Debt , Giving , Happiness , Retirement , Saving , Taxes
Managing Money by The Book
- "Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock." - Matthew 7:24-25
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