Judson Gee, with JHG Financial Advisors, stopped by WBTV News Sunday Morning to offer some advice. His tips are below but he reminds us that everyone’s situation is unique and a tax professional who knows your situation might be your best resource for advice.
Ideas on how to use your tax refund from Judson Gee:
Spend Some, Invest Some, Give a Little Back
A. Spend Some!
1. Put some money into your short to midterm savings in order to build a cushion or plan for upcoming vacation, your next emergency (auto repair, home projects, other personal expenses that don’t recur each month, such as fixed expenses like mortgage/rent, utilities etc) I call this your M2 Vault (2-3 year $$)
2. Invest Some! – Hopefully part of one’s refund comes from good planning. Perhaps they made an IRA contribution or maximized their Company Retirement Account contributions, thus they lessened their tax burden via Deduction a 2014 Contributions.
3. Therefore this is a great opportunity to build on their long term savings by either increasing their 401k/403b percentage to a higher level, or they might make contribution to a Traditional IRA, or even Tax Free Growth ROTH IRA, to compliment their company plan
4. Give A Little Back!
5. Your favorite charitable organization could use your help! As Grandmother Gee used to say; “it will come back to you tenfold, not necessarily monetarily but in other ways” Karma!
Of course it may be tax deductible too!