Deciding how to spend your tax return can be a daunting task. Do you make a big purchase, put it all in savings, or is it better for you to invest? There are many options available, and we are here to help you navigate them all.
Start an emergency fund: Do you have enough money put away to sustain you for three months in the case of an emergency? If not, consider starting an emergency fund with your tax return. It’s an important fund to maintain in the event that the unthinkable happens.
Make a donation: Making a donation is not only a great thing to do for a charity or worthy cause, it also reduces your taxable income for the next tax season. Keep in mind you don’t have to spend all of your refund on the donation. It can be 10 percent, 25 percent or whatever you are comfortable donating.
Invest: You can invest in your child’s education by starting an education fund where you can grow your money tax-free. Another option is to invest in yourself. Consider making improvements to your home, continuing your education, or starting a traditional IRA, Roth IRA, or IRA CD to save for retirement. To learn more, visit our website.
Pay off your debt: Take a weight off your shoulders and consider using all or part of your tax return to pay off any credit card debt, student loans, or car payments you have looming. To get the most out of your tax return, consider paying down the debt with the highest interest rate first.
Made your decision? Let us help with next steps. For help navigating your options, contact us today, call 859-292-9000, or stop by the branch to meet with us in person.